Factors affecting the performance of small and micro enterprises (smes) traders at city park hawkers market in Nairobi county, Kenya

Abstract

The ever changing business environment requires firms to adapt quickly to associated new challenges and competition, and presents particular problems for small businesses given their small size and limited resources. Small businesses increasingly face competition not only from their peers but also from large corporations participating in niche markets once regarded the preserve of smaller businesses. In fact, reliance on domestic markets for business growth is a thing of the past for many SMEs. The study sought to establish the factors affecting the performance of small and micro enterprises (SMEs) traders at city park hawkers market in Nairobi County, Kenya. The study sought to achieve the following objectives: establishing how accessibility to business information services affects the performance of SMEs traders at city park hawkers market in Nairobi County; examining how access to finance affect performance of SMEs traders at city park hawkers market in Nairobi County; determining how the use of technological input in payment system affect the performance of SMEs traders at city park hawkers market in Nairobi County and examining how the availability of managerial experience affect the performance of SMEs traders at city park hawkers market in Nairobi County. The study applied survey research design on a sample of 47 SMEs Traders. The study employed the use of questionnaires to collect primary data through interviews as research tools since they collect information that is not directly observable as they inquire about feelings, motivations, attitudes, accomplishments as well as experiences of individuals. For the main purpose of this research, the study collected primary data and compare it with the available secondary data for the literature review. Descriptive statistics was used mainly to summarize the data. This included percentages and frequencies. Tables and other graphs were used as appropriate to present the data collected for ease of understanding and analysis. The study concludes that access to business information services affected the performance of the business to a great extent. The study further concludes that access to finance affected performance of SMEs. It affected performance to a great extent because it limited the entrepreneurs' ability to take advantage of opportunity as and when they arose. The study further concludes that technology affected the businesses to a very great extent by facilitating communication with both the supplier and customers, by easing the transportation of goods and by easing the marketing of our products. The study concludes that most of the respondents measured the performance of the business the number of customers and that the Government policy and regulations affect the performance of the business to a very great extent. Managerial experience affected the performance of SMEs of SMEs to a great extent.