Upgrading Roads and Performance of Small-medium Enterprises in Kayole-soweto in Nairobi County

Abstract

Upgrading of road services to meet the demands of both small-medium enterprises is one of the major challenges of economic development in developing countries. In Kenya, Upgraded road infrastructure has been stepped up in slums such as Kibra, Korogocho and Kayole–Soweto. This study sought to determine the effects of upgrading roads and the performance of small-medium enterprises in Kayole–Soweto area in Nairobi County. The objective of the study was determining effects of upgrading of roads on the performance of small-medium enterprises in Kayole - Soweto area, Nairobi County. The study was designed on a descriptive survey research. The study targeted a population of 300 registered businesses. The sample size for this study was 171. The study collected primary data using structured and unstructured questionnaire. The standard deviation, mean and frequency descriptive analysis techniques were used to analyze quantitative data. Charts, frequency tables and percentages were used to present the data for ease of understanding and interpretations of results. Regression analysis was used to examine the relationship between upgraded roads and performance of enterprises in Kayole-Soweto area. The study established that upgrading of Road in Kayole-Soweto made it easy to determine product prices, influence government, non-governmental and private services to easily accessed, increase flow of raw materials with ease and made it easier to find product market for the businesses. The results indicated that upgrading of road in Kayole-Soweto improve transport safety. The study established that transport cost after upgrading of road in Kayole-Soweto was reduced. The study revealed that upgrading of roads in Kayole- Soweto led to accessibility of product market information, increase flow of customers into my business, improve marketing , improved sales volume in businesses and the improvement of roads has allowed my business access products market information that influence the profit margins of businesses. The study concluded that upgrading of road in Kayole-Soweto improve transport safety reducing cost of raw materials, increasing flow of goods from markets, increasing flow of customer into the businesses and increased safety of goods and customers. The study concluded that upgrading of road led to reduction in transport cost which led to decrease the cost of raw materials for the business, reduce cost of transport, and enhance sharing of market information on demand and supply of goods and service in the market leading to reduced delivery time of goods among enterprises in Kayole-Soweto area. The study concluded that upgrading of roads in Kayole- Soweto led to accessibility of product market information, increase flow of customers into my business, improve marketing , improved sales volume in businesses and the improvement of roads has allowed my business access products market information that influence the profit margins of businesses.