SMEs (small and Medium enterprises) growth in Nairobi-Non finance determinants in clothing sub-sector

Abstract

Growth and Expansion of SMEs have led to more employment opportunities, higher standards of living and elimination of social evils in our societies hence the prominence given to SMEs . For most part and in many years the assumption has been that with access to formal credit sources, SMEs are likely to grow as a result. This has led to attention and over-emphasis on formal sources of finance as the comer-stone foundation for SMEs expansion and success.

But there are SMEs that have received little assistance from the formal sources of finance and those that did receive finance from the formal sources have not shown much difference in terms of growth. This has necessitated the need to change focus, pay attention and give more weight to other factors that determine SMEs growth apart from the formal sources of Finance.