Peter Mwaura Njogu

PRESBYTERIAN UNIVERSITY OF EAST AFRICA

Professor Namwel Bosire

PRESBYTERIAN UNIVERSITY OF EAST AFRICA

Timothy Mwangi

PRESBYTERIAN UNIVERSITY OF EAST AFRICA

CITATION: : Njogu P.M., Bosire N & Mwangi T. M. (November, 2018). Challenges Facing Strategic Sustainability of Micro, Small And Medium Business Enterprises (MSMES) in Kenya: A Case Study of Muthurwa Market in Nairobi County in Kenya. International Journal of Economics and Finance (IJEF) Issue No XI, Volume 4, pp 340-364.

ABSTRACT

The study was to investigate challenges facing strategic sustainability of micro, small and medium business enterprises (MSMES) in Kenya; case of Muthurwa market in Nairobi County in Kenya. It was guided by the following objectives; to evaluate the extent to which availability of finance, technological development, and lack of adequate entrepreneurial skills government policies and laws challenges strategic sustainability of MSMEs in Kenya. Descriptive research design was adopted in this study. This study targeted 743 business people operating in Muthurwa Market in Nairobi. The sample 248 respondents were selected using multistage sampling method. The businesses were classified into various strata depending on their operations. 20% of the target population on each stratum was sampled. Simple random sampling using random numbers were used to select the respondent from each stratum. The data was collected using questionnaires which had both closed and open ended questions. The data collected was analyzed by use of the Statistical Package for Social Sciences (SPSS) program. Quantitative methods like mean, percentages, frequencies and standard deviation were used to describe the findings while inferential statistics like correlation analysis, regression and ANOVA were used to establish relationships between the independent and dependent variables and the suitability of the model. The findings were presented in frequency tables, charts and graphs. The study found that for any MSME in Kenya to survive, it should have adequate capital. MSMEs should be encouraged to acquire entrepreneurial knowledge and skills from established institutions and experienced professionals. The study also found the cost of acquiring of electronic gadgets, cost and the knowledge of using was the major deterrents despite the traders having knowledge of usefulness of technology in running the business. The study recommended the government should train the MSMEs traders on entrepreneurial knowledge and skills as well as enable them acquire basic technological skills of promoting their products and operating their businesses. The study also recommended national and county government should provide a conducive business atmosphere for MSMEs to thrive. It should lower or waive licensing fee and provide for essential services. The national government should also lower the customs it levies on MSMEs traders who import their wares from abroad and reduce bottlenecks and bureaucracy associated with the same.

Keywords: :Capital, Entrepreneurship skills, Medium enterprises, Micro enterprise, Strategic sustenance and Working capital.
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