Influence of SME’s characteristics in entrepreneurial networking on growth of SMEs in Trans Nzoia County, Kenya
Authors: Albert Njibwakale Wanambisi, Prof. Gregory Simiyu Namusonge, and Elizabeth Makokha Nambuswa
1. Jomo Kenyatta University of Agriculture and Technology, Nairobi.
2. Professor, Jomo Kenyatta University of Agriculture and Technology, Nairobi.
3. PhD Lecturer, Jomo Kenyatta University of Agriculture and Technology, Nairobi. Kenya
The growth of SMEs increases their performance of socioeconomic development functions of Kenyan economy in terms of creation job, reduction of poverty and promotion of enterprising culture, their growth has been concern to many stakeholders. However, the growth of SMEs in Kenyan has been a concern in tandem to other developing economies in sub-Saharan Africa. Statistics indicates that three out five SMEs in Kenya collapses before their fifth anniversaries. The objective of the study was to determine the influence SME’s characteristics in entrepreneurial networking on growth of SMEs. The study was guided by entrepreneurial networking theory and entrepreneurship theory. Descriptive survey design was employed to collect both quantitative and qualitative data. Stratified and simple sampling techniques were employed to obtain a sample of 363 SMEs from 2,354 SMEs registered by Trans Nzoia County in Kenya. The SMEs were distributed in the following sub sectors of whole trade, retail trade, manufacturing services, restaurant and agriculture. The data collection instruments were questionnaires. The questionnaires were self-administered to SME operators in Trans Nzoia county Kenya. Statistical Package of Social Science (SPSS) was used to analyze data. Descriptive statistics was used to summarize data. Inferential statistic (regressions) was employed in analysis. The study revealed that SMEs’ characteristics in entrepreneurial networking influenced identification of networking partners and absorption of networking resources and information. The study established that SMEs’ characteristics in entrepreneurial networking had positive significant influence on growth of SMEs in Trans Nzoia County. The study contributed to Entrepreneurial Networking theory that SMEs characteristics (limited resources) do not prevent fulfillment of entrepreneurial ambition of entrepreneurial oriented firm. The study recommended that SME operators should embrace entrepreneurial orientation that determine absorption of networking resources and information that may significantly influence growth of SMEs. The study recommends further studies to look at entrepreneurial networking on growth of SMEs and government policy as a moderating factor. Secondly, the study focused on SMEs in Trans Nzoia County thus the study recommends further studies to be conducted in other counties with view to replicate or elicit differences in findings.