Strategies of small and micro enterprises and the key success factors in the energy industry in Kenya: A case study of enterprises in Kisumu

Abstract

Small and Medium Enterprises are enterprises employing between 10 and 150 employees. In Kenya SMEs are mainly found in the informal sector, known as “Jua Kali”. The sector is considered to be a crucial factor in the nation’s competitive development, particularly in recognition of its contribution to economic renewal which is primarily witnessed through employment generation, innovation and wealth creation. In Kenya the Small Scale energy sector lacks access to modern energy that is reliable and affordable may act in concert with and/or contribute to the occurrence of additional barriers to micro-enterprise development. This study was motivated by the need to establish the strategies of small and micro enterprises and the key success factors of energy enterprises in Kenya. To achieve the objective of this study, the study a case of Kisumu. The study collected data from the SMEs at Kisumu using questionnaires. The data was then coded and analysed using descriptive statatistics such as mean and standard deviation. Pearson correlation was used to indicate the extent of relation of the variables. The study found that SMEs operators lacked professional qualifications. The SMEs lack long term policies and communication channels. The government rarely supports small scale energy sectors and little research is done on the small scale energy enterprises. The study has established that some of the success factors include lying of competition strategies such as customer relation strategies, measures to evaluate financial strength, vertical integration strategies, good cost structure and evaluation of product capability and trainings. The study recommended that government supports the SMEs through the ministry of energy, the SMEs be trained on the availability of the development funds, organizational communication channels and systems