Managing challenges facing small and medium enterprises (smes) in central business district of Nairobi, Kenya
The purpose of the study was to examine the management of the challenges facing Small and Medium Enterprises (SMEs) operating within Nairobi Central Business District. The study also sought to find out the following: a) the approaches that can be adopted to address these challenges, b) the relationship between gender and the challenges facing SMEs and c) the relationship between education level and the tendency to seek financial assistance. The study employed survey research design. The sample was picked from all business categories and business entrepreneurs (either business owners or employees in-charge) in Nairobi Central Business District. Cluster simple random and purposive sampling procedures were used to arrive at a sample of thirty eight (38) businesses and seventy six (76) entrepreneurs. Questionnaire method was used to collect data. The Data was analysed using descriptive statistics, employing quantitative approach. From the analysis, the study revealed the following: The most pressing challenges facing enterprises in Nairobi Central Business District according to the majority of the entrepreneurs included lack of credit (88.2%), security concerns (86.8%) and unfriendly legal and regulatory environment (84.2%). Further, the study revealed that there is no one time answer to the SMEs‟ problem. There are as many approaches to SMEs‟ problem as there are challenges. The study recommends that various stakeholders in the banking industry to work together, especially setting up inter-bank financing to pool money to be invested in SMEs. Further, policy makers should review the legal, tax and regulatory framework to ensure that it encourages the development of venture capital essential for the growth of SMEs.