Influence of Regional Integration on the Growth of Medium Textile Entreprises in Nairobi

Abstract

Over the years, countries have come together to form agreements towards one political, economic, social-cultural and environmental bloc. These agreements are aimed at facilitating the flow of products, funds, energy, people and ideas across national boundaries. Kenya is a member of several regional blocs and such integrations have enabled the country enjoy cooperation in trade, investments, domestic regulation, transport, ICT and energy infrastructure through a common physical and institutional infrastructure. As a result, local businesses have thrived because of increased trade amongst members of the regional bloc, foreign direct investment capital, increased innovativeness as well as increased free trade amongst countries worldwide. The objective of this study was to determine how regional integration has influenced the growth of medium textile enterprises in Nairobi. A sample size of 51 medium textile enterprises was used and 41 of these medium textile enterprises responded which was an 80% response rate which gave the researcher confidence to continue with analyzing the results from the data collected. Descriptive analysis and inferential statistics were utilized to interpret results and from the findings, regional integration has an influence on the growth of medium textile enterprises. This is explained by the increase in sales, profits, provision of wider markets that in turn increase enterprise market share and expansion of the enterprise business activities in neighboring countries. Clearing of goods at border points, selling and buying of goods from neighboring countries have also been made easier by regional integration thus regional integration has a positive and significant effect on trade activities. Great benefits in enterprise performance was attributed to regional integration making it easier for businesses to move goods across borders, reduced tariffs and barriers to trade as well as provision of wider markets in the regional blocs. Further research is recommended on knowledge and technological transfer in business enterprises in the context of regional integration as it was not a popular aspect in business from the findings. Regional integration is essential to business growth and as such, governments together with other relevant stakeholders should support it and ensure all if not most enterprises participate in the integration so as to enjoy the benefits that come with regional integration.