The influence of supply chain management Practices on the performance of micro and small Enterprises: a survey of south Rachuonyo District, Kenya

Abstract

This study was focused on establishing the effect of Supply Chain Management on Small and Micro Enterprises in South Rachuonyo, Kenya. In particular the study sought to assess; supply chain management practices, performance of small and micro enterprises, small and micro enterprises in Kenya and micro and small enterprises in South Rachuonyo District. The study had the following objectives; information sharing of the supply chain management of SMEs, transport infrastructure and the supply chain management of SMES, the effectiveness of facilities in Supply Chain Management of SMES and the role of technology in the management of SMEs. From the study various enterprises were seen to have their requirements and required money and time. Lack of access to credit is almost universally indicated as a key problem for SME's. This affects technology choice by limiting the number of alternatives that can be considered. Many SME's might have used an inappropriate technology because it is the only one they can afford. There are various other financial challenges that face small enterprises. The research design adopted was cross-sectional survey. The study employed stratified, simple random and purposive sampling techniques to sample the respondents. The researcher used closed and open ended questionnaires to collect data. A sample size of 346 SMEs was analyzed out of a target population of 3320 SMEs were selected. The collected Data was analyzed using descriptive statistics and they were presented using tables and graphs. It was established from the study that majority of the SMEs owners were women of middle age. The study found that majority of the SMEs were established because they acted as a source of employment. Further it was found that majority of the SMEs were able to employ over two employees in their enterprises. The findings from the study also found that majority of the SMEs had efficiency in the real-time control systems. It was established that half of the SMEs indicated that business goods are delivered in time. Finally, majority of the SMEs showed that the enterprises always adopt with any new technology. From the findings of the study it was recommended that for quick expansion of Small and Micro Enterprises business ideas should be shared by all the concerned business partners. Therefore further research should be carried out to determine how business ideas influence the growth of SMEs. The study also recommended that accessibility of business enterprises should be made easier. This was necessary because goods and information should reach the customers at the right time. Therefore, a study should be carried out to examine the challenges faced by SME operators in relation to accessibility. From the study it was concluded that SMEs were able to meet regularly, however majority were not able to share business ideas among business colleagues and that there was a strong local network connecting the business enterprises and how information sharing influences performance of SMEs.