Influence of Social Economic Factors on the Business Performance of Small and Medium Enterprises Fish Farming Businesses in Kiambu County, Kenya

Abstract

Socioeconomic factors creates the environment which allows or limits the chances of any business to thrive and succeed in any market. The environment in which a business operates presents opportunities, threats and constraint. SME’s struggle as a result of unfavorable social economic conditions such as limited access to credit and competitive markets, low product value addition, and insufficient managerial skills. In Kiambu County, the underperformance of commercial fish farming has not been helped by the low percentage of allocated budget which stands at 3.68 percent of the total county budget as indicated in the county integrated development plan (2017). According to the county intergrated development plan of 2013, it was revealed that fish farming was one of the main activity that will improve the income and health of people in Kiambu. The purpose of this study is to determine the influence of Social and Economic factors on the Business Performance of Small and Medium fish farm in Kiambu County, Kenya. Descriptive analysis, correlation analysis and regression analysis were used to achieve the objective of the study. The study findings revealed that social economic factors influence the small and medium commercial fish farming business performance positively. The research findings revealed that demographic factors had positive and significant relationship with the business performance. It was also revealed that social factors and business performance of small and medium scale fish farming were positively and significantly related. Similarly, economic factors positively and significantly influenced business performance of small and medium scale fish farmers. From the study it can be deduced that fish farming is a viable business which is generating profits and income consistently. Additionally, the respondents are not aware of the market both locally and nationally hence they were not certain on whether fish farms produces enough fish for local and national market. Furthermore, it can be established that local customers are satisfied with the amount and quality of fish they buy. This is can be partly attributed to the fact that fish eating culture is new in Kiambu County residents and hence they may not be perfectly aware of the standards and quality of all types of fish. The study recommended that the Kiambu County Government should subsidize fish farming inputs in order to encourage and entice fish farmers to start and continue with fish farming without challenges of acquiring finances to expand and maintain their farms.