Understanding Performance of Micro and Small Enterprises in Kajiado County, Kenya: The Application of Strategic Interventions

¹Julius Kipino Nkoiboni & ²Janet Muthimi, PhD
^1,2Department of Business Administration, Kenyatta University
Corresponding Email: nkoiboni.julius@gmail.com

ABSTRACT

In the contemporary global business environment, achieving performance has been the primary objective in both organizational and individual contexts, whether small, medium, or large, in both profit and people. Besides, for businesses to gain prominence, they need a strong strategy. Micro and Small enterprises are a significant source of growth, innovation, and jobs, and their potential impact on achieving many of the Sustainable Development Goals is far greater than their size would suggest. Besides, still, Micro and Small enterprises have not achieved their goals and objectives, leading to underperformance or failure in most countries. In this regard, when firms do not perform as expected, concern arises about their use of improvement strategies. Fortunately, strategic interventions have been widely cited as a key construct that firms can adopt to improve efficiency, effectiveness, and performance. Timely and appropriate interventions can bring a significant change in fortune. The study aimed to determine whether adopting strategic interventions would influence the performance of selected Micro and Small enterprises in Kajiado County, Kenya. Precisely, the study aimed to examine whether affordable credit, Information and Communication Technology, strategic marketing, and entrepreneurship training affect the performance of selected Micro and Small-sized Enterprises in Kajiado County, Kenya. The study was anchored in three theories: the Balanced Scorecard Model, Dynamic Capability Theory, and Schumpeter's Theory of Economic Development. A descriptive research design was used, targeting a population of 670 medium and small enterprises registered and fully operational for 5 years or more. Proportionate stratified and random sampling was employed to select a random sample of 202 business owners and directors as the unit of observation. The data collection instrument was a pilot-tested questionnaire for accurate measurement examination. Descriptive and inferential (multiple regression) statistics were used for data analysis. The findings revealed that strategic interventions measured by affordable credit, Information Communication Technology, strategic marketing, and entrepreneurship training had a significant impact on micro and small enterprises' sales growth and stability, customer stability, product repurchase, and earning stability and increase (Adjusted R-Squared = 0.671, F-statistic 39.850, P-value < .001). The study findings imply that strategic interventions constitute a comprehensive measurement system that addresses critical aspects of business functioning in Medium and Small enterprises in Kajiado County and influences sales growth rate and stability, customer loyalty, product repurchase, earnings stability, and rate of increase. The study recommends that the management of Medium and Small enterprises should include strategic interventions in their strategic plans and business structures to ensure high performance continues. Other businesses and companies should adopt strategic interventions to improve their performance.

Keywords: Strategic Interventions, Affordable Credit, Information Communication Technology, Strategic Marketing, Entrepreneurship Training, Firm Performance, Micro and Small Enterprises (MSEs).

Article Type: Open Access

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