Influence of Training Strategy on Growth of Small and Micro Enterprises in Kenya: A Case of Women Enterprise Fund

Main Article Content

Tom Ongesa Nyamboga
Edwin Odhuno
Walter Okibo Bichanga

Abstract

The government of Kenya established Women Enterprise Fund to enhance the growth of Small and Micro Enterprises in the country through its training strategy. The purpose of this study was to establish the influence of training strategy on growth of SMEs in Kenya. This research used a descriptive survey based design. The study’s target population was composed of group leaders’ beneficiaries of Constituency Women Enterprise Scheme. Both cluster sampling and simple random sampling were used to select a sample size of 335 respondents. Quantitative primary data was collected by use of structured questionnaires. The data collected was analyzed according to research objectives. The study utilized both descriptive statistics and inferential statistics to analyze data. Both ANONA and Regression Analysis were computed to assess the correlation between the variables. The findings of the study established that majority of clients had acquired relevant business skills. The training was given to most clients on a regular basis and enabled them to operate their SMEs more effectively. ANOVA results showed a correlation between training strategy and growth of SMEs since the calculated P value 0.001 was less than the critical value 0.005. The study therefore established a positive relationship between training strategy and growth of SMEs. The findings of this study will help the government of Kenya to formulate training strategies that would boost the growth of SMEs in the whole country. The study recommends the government to provide frequent training to all SMEs in the country to make them more efficient and effective.

Keywords:
Training strategy, small and micro enterprises, women enterprise fund, entrepreneurs, constituency women enterprise scheme, Government of Kenya.

Article Details

How to Cite
Nyamboga, T. O., Odhuno, E., & Okibo Bichanga, W. (2019). Influence of Training Strategy on Growth of Small and Micro Enterprises in Kenya: A Case of Women Enterprise Fund. Asian Journal of Economics, Business and Accounting, 13(1), 1-13. https://doi.org/10.9734/ajeba/2019/v13i130162
Section
Original Research Article

References

Hassan IB, Mugambi F. Determinants of growth for women owned and operated micro enterprises: The case of Garissa County. International Journal of Business and Commerce. 2013;2(7):45-55.

Capital market authority. Capital raising opportunities for SMEs. The development of micro-cap securities markets in Kenya. Nairobi: Capital Market Authority; 2010.

Katua NT. The role of SMEs in employment creation and economic growth in selected countries. International Journal of Education and Research. 2014;2(12).

Bayati A, Taghavi A. The impact of acquiring ISO 9000 certification on the performance of SMEs in Tehran, the TQM, Magazine. 2007;19(2):140-149.

Malhotra S. How small businesses are driving growth across African Agriculture. AGGRA Report; 2019.

Otekunrin S, Momoh Idris, Ayinde A. How far has Africa gone in achieving the Zero Hunger Target? Evidence from Nigeria”. Global Food Security (Elsevier). 2019;22: 1-12.
Available:https://doi.org/10.1016/j.gfs.2019.08.001

Bharat P, Lee I, Chaudhury. Global perspectives on small and medium enterprises and strategic information systems: International Approaches; 2010.

Buchanan L. American entrepreneurship is actually vanishing. Issue of INC magazine; 2015.

Liu D. the relation estimate of regional economic development and growth of small businesses. Quantitative and Technical Economics. 2004;5:24.

Sigh RK, Garg SK, Deshmukh SG. The competitiveness of SMEs in a globalized economy: Observations from China and India. Journal of Management Research Review. 2009;33(1).

Canbin H. Poverty alleviation through community participation, China; 2013.

Yulanda W. Poverty reduction of rural women in China — General Situation and Expectation; 2014

Nyamboga OT, Bichanga WO, Odhuno E. Evaluation of government micro crediting strategy on the growth of small and micro enterprises: Case of women enterprise fund in Kenya, Case Studies Journal. 2017;6(12):16-28.

World Bank. The effect of women’s economic power in Latin America and the Caribbean. 2012.

Cant MC, Wiid JA. Establishing the challenges affecting South Africa SMEs. International Business & Economics Research Journal. 2013;12(6).

Fatoki O, Gware D. Obstacles to the growth of new SMEs in South Africa. A Principal Component Analysis Approach; 2010.

Robert J. Small Business Failure Rates As High As 63% in the First Two Years; 2010.
Available: www. businesslive.co.zaas

Kongolo M. Job creation versus job shedding and the roles SMEs economic development; 2010.
Available: www.academic journal.org

Ladzani MW, Vuuren JV. Entrepreneurship training for emerging SMEs in South Africa. Journal of Management. 2002;40 (2):154-161.

Yussuf-Habib M, Ibrahim Y. Nigerian SME development and the unified economic promises of the new political era (1999-2015). Global Journal of Human Social Science. 2017;7(5).

Alese OJ. Strategic management and the development of small and medium enterprises in south-west, Nigeria. PhD thesis of Obabisi Onabanjouniversity, Ogun State, Nigeria; 2017.

Katua NT. The role of SMEs in employment creation and economic growth in selected countries. International Journal of Education and Research. 2014;2(12).

Kangethe K. Continuous training in technical skills necessary for SMEs Growth. Capital Business; 2016.

WEF Report.
Available: www.wef.coke
(Accessed on 20th June, 2015)

WEF Report.
Available: www.wef.ke
(Accessed on 1st April 2019)

Kemunto MR. Factors influencing growth of women owned small and medium enterprises in Nyaribari Chache Subcounty. MA Project Report; 2017.

Garry B. Human capital: A theoretical and empirical analysis with special references to education. Investment in Human Earnings Effects on Earnings; 1975.

Cooper AC. Strategic management: New ventures and small business. Long Range Planning. 1981;14(5):39-46.

Anderson A, Miller C. Class matters: Human and social capital in the capital in the Entrepreneurial Process; 2003.

OECD. Enhancing the contributions of SMEs in a global and digitalized economy. Meeting of the OECD council at ministerial level; 2017.

Olowale F, Garwe D. Obstacles to growth of new SMEs in South Africa: A case of principal component analysis approach: Africa Journal of BRITISH Management. 2010;4(5):729-738.

Kedogo BK. Factors influencing the growth and development of small and medium enterprises in Kenya: A case of Huruma Division, Nairobi County. M.A. Published Research Project; 2013.

Njoroge CW, Gathungu JM. Effect of entrepreneurial education and training on development of SMEs. International Journal of Medium Size Enterprises. 2013;1(8).

Kessy S, Temu SS. The impact of training on performance of micro and small enterprises served by microfinance institutions in Tanzania. Research Journal of Business Management; 2010.

Muteru B. The effect of microfinance institutions on growth of women owned enterprises: A case study of Kenya Women Finance Trust in Kikuyu Township. International Journal of Social Sciences and Entrepreneurship. 2013;1(5):351-371.

Mwarari MM. Factors influencing listing of Kenyan SMEs in the Securities. National-Ordination Agency for Population Development; 2013.

Ibru C. Growing microfinance through new technologies. Federal University of Technology, Akure, Nigeria; 2009.

IFAD. Enabling Poor Rural People to Overcome Poverty in Kenya; 2009.
Available:http://www.ifad.org/operations/projects/regions/pf/factsheets/kenya.pdf

Weerakkody W, Ediriweera AN. Impact of training and development on business performance with reference to SMEs in Gamphara District. International Journal of Business and Management. University of Sri Jayewardhanapura; 2010.

Foth J, Bryson A. The impact of microfinance practices on SME performance. Discussion Paper Series; 2018.

Scott G, Leritz LE, Mumford MD. The effectiveness of creativity training. A Quantitative Review .Creativity Research Journal. 2009;16(4).

Kotey B, Folker C. Employee training in SMES: Effect of size and firm type- family and nonfamily. Journal of Small Business Management, 2007;45(2).

OECD. Enhancing the contributions of SMEs in a global and digitalized economy. Meeting of the OECD council at ministerial level; 2017.

Elnaga E, Imran A. Effect of Training on Employee Performance. European Journal of Business and Management, 2013; 5(4).

Yayha AZ, Othman MC, Shamsuri AL. The impact of training on SMEs performance. Journal of Professional Management. 2012;2(1).

OECD. Enhancing the contributions of SMEs in a globalised and digitalized economy. Meeting of the Council Of Ministers, Paris; 2017.

Samwel JO. Impact of employee training on organizational performance: Case study of drilling companies in Geita, Shinyanga & Mara Regions of Tanzania. International Journal of Management Studies and Research. 2018;6(1).

Sarwoko EA, Frisdiantara C. Growth determinants of SMEs. Universal Journal of Management. 2016;4(1):36-41

Ajuna S, Ntale T, Ngui T. Impact of training on the performance of women enterprises in Kenya, case of Meru County. International Journal of Leadership and Entrepreneurship. 2018;2(2):93-112.

Natul K. The relationship between levels of education of entrepreneurs and their business success. 2011;25(4):265-275.

Rodriques A, Molina MA, Perez A. Size, age and activity sectors on the growth and medium firm size. Journal of Small Business Economics. 2003;29:289-307.

Eshetu B, Zeleke W. Women entrepreneurship in micro, small and medium enterprises. The case of Ethiopia. Journal of International Women’s Studies. 2008;10(2):3-5.

ILO. Vulnerability and young women entrepreneurs: A case study of Ethiopia informal sector economy. Geneva: International Labor Organization; 2006.

UNECE. Feeding Africa: towards agro-allied industrialization for inclusive growth. African Economic Conference; 2016.

Fjose S, Gruntfeld L, Green C. SMEs and growth in Sub Saharan Africa: Identifying SMEs roles and obstacles to SMEs growth. Menon Publication; 2010.
/2010. MENON

Ewoh E. Female entrepreneurs’ performance: A systematic literature forces influencing the performance of Africa female entrepreneurs. Jyvaskyla University; 2014.

KIPPRA. Kenya economic report: Building a globally competitive economy. Kenya Institute of Public Policy and Research Analysis, Nairobi, Kenya; 2009.

IFC. Gender entrepreneurship markets, GEM country brief. Afghanistan: GEM. International Journal of Business and Social Science. 2007;1(2).

Roomi MA, Parrot G. Barriers to development and progression of women entrepreneurs in Pakistan. The Journal of Entrepreneurship. 2008;17(1):59-72.

Porter EG, Nagarajan KV. Successful women entrepreneurs as pioneers: Results from a study conducted in Karaikudi, Tamil Nadu, India. Journal of Small Business and Entrepreneurship. 2005;18(1):39-52.

Kothari C. Research methodology: Methods and techniques. 3rd edition; New Age International Publishers, New Delhi, India; 2014.

Kumar R. Research methodology: A step by step guide for beginners (4th Ed), Sage Publication Ltd., London; 2014

Yamane T. Statistics, an introductory analysis. 2nd Ed., New York: Harper and Row; 1967.

Gupta S. Statistical methods. Sultan Chand & Sons Publishers, New Delhi; 2008.

Mugenda OM, Mugenda AG. Research methods: Quantitative and qualitative approaches. Act Press, Nairobi; 2012.

Sekaran U, Bougie R. Research methods for business: A skill building approach. West Sussex, UK: John Wiley & Sons Ltd; 2010.

Cooper DR, Schindler PS. Business research methods. 8th edition, MacGraw-Hill Irwin, Boston; 2003.