Factors influencing the success of small and medium enterprises: a case study of businesses in Gikomba Market in Nairobi.

Abstract

The major objective of the study was to establish the factors influencing the success of SMEs in Gikomba Market in Nairobi. Target respondents were drawn from Gikomba market and it comprised of owners of SMEs in the market. A semi-structured questionnaire consisting of closed and open-ended questions was used to collect data. The collected data was analyzed by the SPSS tool for quantitative variables while qualitative responses were analyzed through content analysis. The findings of the study indicated that there is need to ensure that all the categories of SMEs are directly involved in any planning practices that the City council wishes to put in place. This will guarantee balanced growth in the SMEs industry. It will also enhance the spirit of team work and promote a learning-oriented culture in the SMEs industry. This study faced some challenges such as total lack of response by some respondents or the unwillingness by some respondents to provide full information on their businesses, time and money constraints, and extreme whether conditions which limited the depth of the study. This study proposes that further research be undertaken in the area of the role of SMEs in Kenya. It is also recommends that further research be undertaken in order to compare SMEs in the different parts of the country in terms of challenges they face, whether or not they are similar so that necessary action can be taken accordingly and without any delay. Further, since very little study has been carried out in the area of success of SMEs, it is important that intensive research be carried out in this area, emphasizing on the degree of success and the criteria of measuring success so as to motivate more people to start up their own SMEs, and in turn, boost the Kenyan economy given that there is an acute unemployment problem resulting in over 50% of the Kenyan population living below the poverty line.