Operational challenges in the growth of small & medium enterprises in kisumu county, kenya

Abstract

The small and medium-sized enterprise (SME) sector has an important role to play in developing economies, poverty alleviation and job creation, and this can only be realized through growth of the sector. To determine the operational challenges in the growth of SME's in Kisumu County. Specifically the study aimed to assess the impact of Supply chain and capacity planning in the growth of SME's in Kisumu County, to determine how Logistics and inventory control impact on the growth of SME's in Kisumu County, to ascertain the impact operational structure and production in the growth of SME's in Kisumu County and to establish the role of information communication and technology in the growth of SME's in Kisumu County. This research adopted a descriptive survey design where the population of interest in the County SME were visited and data collected through questionnaire, interview and conversation analysis. The target population for this study was 7000 SME's from all the licensed businesses within kisumu County (Data from single business permit licenses kisumu county council 2012). Stratified Random Sampling procedure was used for this research as it enabled the population of interest if not homogeneous to be subdivided into groups or strata so as to obtain a representative sample. It also gave each SME in the population an equal chance of being selected. The researcher used a questionnaire as the primary data collection instrument. The organised data was interpreted on account of concurrence and standard deviation to objectives using assistance of computer packages especially SPSS and Microsoft Excel to communicate research findings. Tables and other graphical presentations as appropriate were used to present the data collected for ease of understanding and analysis. Majority of the respondents argued that all the above factors were almost equally very important to the growth of the business as they all greatly influenced the efficiency and effectiveness of the product/production/ service offering of the business. The management of the SMEs should ensure efficient and effective organizational and operational factors since they have impact in the growth of the business in provision of services, goods and market reach to a great extent. Still on the organizational and operational factors, the management should ensure an efficient location of facilities, efficient management structures and then an optimum capital base.