A survey on enterprise growth patterns in micro and small manufacturing firms in Nairobi
Abstract
This study analyzed micro and small manufacturing firms growth patterns and
factors that influence entrepreneur's preference of enterprise growth patterns.
The two growth patterns are horizontal and vertical growth. Vertical growth is the
conventional pattern where an enterprises increase its workers, expands its
markets, improves its technology and' business structure among others.
Horizontal pattern is where the entrepreneurs chooses not to invest in a single
enterprise but instead increases the number of enterprises and invests more in
real assets like land and construction of family buildings instead of investing in
the enterprise.
The drive to undertake the study was mainly due to the observation that,
graduation of micro and small enterprises to medium and large enterprises in
Kenya has been slow since only 1% is at the medium level. This is in-spite of the
government and MSE sector development agencies efforts since 1972 when the
sector was formally recognized. Also the National baseline survey
(CBSIICEG/KREP 1999) found out that vertical grow-th of the sector since the last baseline survey of 1993 was not significant. However, there was notable
horizontal growth due to the increase in number of enterprises started. There
was therefore need to identify entrepreneurs preferred pattern of enterprise
growth and factors that influence their preference.
This study found out that entrepreneurs pursue horizontal growth pattern in-order
to reduce the perceived business risk. For the MSE sector to grow vertically, the
general business environment need to be addressed so as to reduce the
business risk .
Citation
A Management Research Project Report Submitted in Partial Fulfillment for the Requirements of the Degree of Masters of Business Administration (MBA), School Of Business, University Of NairobiPublisher
Business Administration