Factors that influence the performance of micro and small agricultural enterprises in Nyamache Subcounty, Kenya

Abstract

Micro and Small Enterprises (MSEs) in Kenya’s agricultural sector have not performed well enough to play their expected vital role in the economic growth and development of the country. This situation has been of great concern to the government, citizenry, sector operators, practitioners and the organised private sector groups. This study begins by undertaking a background review followed by related literature review from global, regional and local perspectives. The purpose of this study was to establish the factors which influence performance of small and micro enterprise in Nyamache Sub-County, Kenya. The study had the following objectives: To determine the extent to which access to financial literacy influence overall performance of agricultural MSEs in Nyamache Sub-County. To assess how managerial skills influence the performance of agricultural MSEs in Nyamache Sub-County. To assess how regulatory environment influence the performance of agricultural MSEs’ performance and finally to examine how the firm’s size influence the performance of the agricultural micro and small business enterprises. The study employed descriptive survey research design whose purpose was to determine the factors influencing performance of small and micro enterprises in Nyamache Sub- County, Kenya. The sample size consisted of 44 MSEs obtained from a total population of 224 registered MSEs. The respondents were selected through simple random sampling techniques and the businesses were categorized through stratified random sampling. The research instruments used were questionnaires and interview schedules. The questionnaire contained closed ended questions that required a definite answer and open ended questions that required respondents to give descriptive answers. On validity of theinstruments, the researcher used content validity while the instruments reliability was determined by the test re-test method. Data, analysis was carried out to fulfill research objectives and provide answers to research questions. The study applied both qualitative and quantitative approaches. The results were interpreted and placed on frequency distribution tables in percentages that display systematically the results and give meaning of reported figures; these were used to provide an adequate statistical report to the findings. Qualitative data was analyzed and interpreted by organizing data into the key areas as per the objectives of the study. The last section of the report contains a summary of findings of the study as well as discussions and conclusions based on the findings.