Operations Management and Growth of Small and Medium Enterprises in Kenya

Abstract

x ABSTRACT The purpose of the study was to assessed operations management and growth of small and medium enterprises in Kenya. The Study was based on following objectives: To determine operations management and growth SMEs in Kenya and to determine the effect of innovation on growth of SMEs in Kenya. Descriptive survey design was adopted to obtain a complete and an accurate description of situations, persons and events. The study was conducted on operations management issues in growth of small and medium enterprises in Nanyuki region, with target population being 300 respondents and sample size of 30 respondents. The data collection instruments were questionnaires. The study concluded that; Difficulties in accessing loans for business growth was reason for slow and retardation of business growth and that startup loan could have positive impact on the growth of the business. Study concludes that sales revenues had very largest achievement as result of loans accessibility due to availability of enough stocks, profitability had minimal achievement, and this could also mean the cost of accessing loan could be higher meaningless profit. SMEs operators has no training, education and or vocational training are better placed to adapt the constantly changing business environment. Technology and efficiency impact more positively on the growth of SMEs. The quality of management is important for small and medium-sized enterprises (SMEs), which must be able to adapt quickly to evolving markets and changing circumstances, but which often have limited resources. Agency banking has resulted in financial incursion in the region of the study, eliminating financing challenge that has been found to limit growth of small and medium enterprises. Study recommends that Given that accessing loans for business growth was reason for slow and retardation of business growth and that startup loan could have positive impact on the growth of the business. The study recommends that financial institution should make available financial resources to SMEs to enhance business growth. Government, relevant ministries in trade and industrialization should come up with policies on SMEs training on areas of financial management since the study found out that, SMEs operators has no training on the financial management. And given that training impact positively on growth of entrepreneurs with large stocks of capital that includes education and or vocational training are better placed to adopt the constantly changing business environment. Given that agency banking has resulted in financial incursion in the region of the study, eliminating financing challenge that has been found to limit growth of small and medium enterprises, the study recommends that the model can be replicated by government in financing SMEs in rural areas of Kenya.