Business consultancy services and performance of KPMG top 100 small and medium enterprises in Kenya

Abstract

Small and medium are known to perform dismally in their inception years. Some SMES are known to collapse due to business related problems though most of them do survive to continue with their business. Consultancies are said to be aware of industry 'best practices’ and businesses go for their expertise and experience in solving their business related problems. In Kenya some SME companies have managed to overcome the business related problems and thus managed to make it to the Top 100 SME’s in the country annually. This study sought to determine the relationship between business consultancy services and the performance of the KPMG Top 100 small and medium enterprises (SMEs) in Kenya. The literature review expounded the challenges that SME’s faced in their business process which were major obstacles in the business success. The literature review also introduced and looked into the business consultancy concept and its processes. The business consultancy field has so many specializations that firms seek help from, with an aim of getting their problems solved. On a practical ground the study focused on the top 100 mid-sized companies in Kenya in the years 2009, 2010 and 2012. Through exploratory research design the study helped in determining and explaining the relationship between the consultancy services provided and the performance of the SMEs. The data was collected via primary data in form of questionnaires and secondary data from previous studies; the study applied quantative analysis techniques to analyze the data and presented it in form of tables, charts and narratives. v The study revealed out that indeed there was a relationship between business consultancy and the performance of the top 100 mid-sized companies in Kenya. Indeed the companies faced challenges which lead them to seek consultancy help. Among the consultancy services sought after were financial assistance and auditing, business strategies, marketing, HR and IT. The study concluded that whilst the named companies in the KPMG Top 100 SME surveys benefited from such services to achieve good performance, not all SMEs embrace this approach for various reasons. The researcher thus recommended that other SMEs should copy from those that have benefited from consultancy services. Further that consultancy firms need to come up with ways of reaching the masses: explaining the value of what they do, where they can be found and at what cost among other recommendations.