Strategies adopted by SMEs in global entrepreneurship

Abstract

The changing global environment has led to more competition, increased product choice, increased customer demand, lower prices, product innovations and information technology. Companies face intense competition from domestic and foreign brands which is resulting in rising promotion costs and shrinking profit margins. Due to changes in the marketplace, companies must cope with the dynamic environment in order to survive. It is the new developments in the market environment that compelled the researcher particularly to conduct a study on the competitive strategies adopted by Small and medium enterprises in global entrepreneurship domiciled in Kenya.The study was a cross sectional survey whose population of interest consisted all the top 100 mid sized companies in Nairobi County for the year 2011. Based on the study findings the challenges in strategy implementation are; Lack of financial resources, Poor advances in technology, Small business margins, and increased operational costs. On the other hand the challenges that are considered minor by the SME’s are; Diminishing business returns, stringent regulatory framework, Competitor activity in strategy mimics and Lack of employee expertise. It is therefore imperative that the management mobilize funds to improve on their information technology. Increased operations costs problem may be solved by adopting cost effective production and operations methods that emphasize on profit maximization at reduced costs.