EFFECTS OF INFRASTRUCTURE ON GROWTH OF SMALL AND MEDIUM ENTERPRISES IN KENYA: A CASE OF CLOTHING AND TEXTILE BUSINESSES IN NAIROBI CENTRAL BUSINESS DISTRICT
Alice Njeri Mugo - Master of Business Administration, St. Paul’s University, Kenya
Dr. Julius Kahuthia - Department of Business Administration, Faculty of Business and Communication Studies, St. Paul’s University, Kenya
Dr. Godfrey Kinyua - Department of Business Administration, Faculty of Business and Communication Studies, St. Paul’s University, Kenya
ABSTRACT
According to KNBS (2016), there are 7.5 Million SMEs employing close to 14.9 million Kenyans and have contributed 28.8% to Kenya’s GDP. While they have continued to provide many jobs and boosted the country’s GDP, SMEs have continued to face a myriad of challenges that have persistently hampered their growth. The specific objectives of this study was to determine the effects of infrastructure on growth of SMEs in clothing and textile businesses in Nairobi County CBD. The study was guided by four theories namely, the knowledge-based theory, institutional theory, market-based view and Firm Growth Theory. The study adopted descriptive research design to help answer the research questions. The target population for the study was the licensed SMEs operating clothing and textile businesses within Nairobi County CBD. The study conducted a census of the entire target population of 400 licensed SMEs running textile and clothing businesses within the Central Business District in Nairobi City thus no sampling was done. For the purpose of this research, primary data was used and was collected using a structured questionnaire administered in a drop and pick method targeting owners and or managers of the businesses. The gathered data was analysed using multiple regression analysis. The findings were then shown through tables, charts and graphs. The respondents’ overall opinions were that infrastructure has insignificantly affected the growth of SMEs in the textile and clothing businesses in Nairobi County CBD. The study concluded that the independent variable, that is infrastructure, has contributed differently to the growth of textile and clothing businesses in Nairobi County CBD. The study recommends that both the National government and County government of Nairobi should aim at providing the right infrastructure such as access roads and telecommunication as well as power and water supply as a way of promoting the growth of SMEs in the clothing and textile industry in Kenya.
