Variables Influencing the Growth of Micro and Small Manufacturing Enterprises in Kenya: The Entrepreneurial Management

Abstract

Micro and Small Enterprises (MSEs) are an important segment of Kenya’s economy. The enterprises contribute about 70% to the country’s Gross Domestic Product (GDP) and over 80% of the country’s employment opportunities. Therefore, this study sought to establish the influence of reward philosophy and entrepreneurial culture on growth of MSEs in the manufacturing enterprises in Kenya. The research design adopted in this study was the mixed method. The target population of the study was the 10,345 ownermanagers of manufacturing MSEs in Kenya. A sample of 393 ownermanagers of manufacturing businesses in Nairobi were selected using stratified random sampling. Questionnaires were used as data collection tools. The researcher administered the questionnaires personally and also employed drop and pick later method in cases where it was not possible for respondents to complete the questionnaires the same day. Pilot testing of the research instrument was undertaken to ascertain reliability and validity. The study generated both qualitative and quantitative data. Multiple linear regression model was also used to establish the relationship between dependent and independent variables. The study established that, all the predictor variables; reward philosophy and entrepreneurial culture influenced growth of micro and small furniture manufacturing enterprises. The key recommendations are that entrepreneurs should be given adequate access to credit in order to realize growth in their businesses.  Policies regarding training and research and development (R&D) should be put in place in order to help the entrepreneurs innovate and be successful in their businesses. The study recommends that the government should improve Resource allocation to MSMES in manufacturing enterprises in Kenya by allocating funds and initiating training in entrepreneurial management skills for them to grow from their current status.