The influence of business development services on business growth in small and micro enterprises run by women: a case of Kasarani Constituency, Nairobi Province
Kigera, Mary A W
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The purpose of the study was to highlight the influence business development services has on business growth of women run SMEs in Kenya. The study addressed specific services offered through BDS that largely contribute to business growth. Based on the recent SME National survey carried out in 1999, SME's run by women account for 54% of the total small and micro enterprises in Kenya; however these enterprises do not seem to have an impact on the economy in terms of increased in employment in the sector. 96.7 % of SME's run by women do not employ more than 5 employees. This lack of enterprises in the 11-50 employee size categories comprises the missing middle of the SME sector. This shows despite the high percentage of SME's run by women in Kenya, there seems to be stunted growth in movement into the next employment size from the original size. This study has shown the need to empower. women in SMEs through business development services in order to encourage business growth. The objectives of the study were: to determine the influence of entrepreneurship training, technological training and marketing training on business growth in SME's run by women in Kasarani Constituency. This study used descriptive survey investigating in depth the relationship between business growth and BDS, specifically in Kasarani constituency, Nairobi Kenya. The population of the study was 40, 392 SME's run by women in Kasarani constituency according to Women Enterprise Fund Social Service office. Stratified random sampling was used in this study and the sample size was 380 women run businesses in Kasarani constituency. An interview with 10 micro finance institutions in Kasarani constituency was also conducted. Data collection was mainly secondary and primary. The field data collection, data analysis and report writing was carried out for a period of 4 weeks from May 2011 to July 2011. Results from the data collected indicated that 75%, 80% and 79% of women running SMEs had not accessed entrepreneurship, technological and marketing training respectively which contributed to lack of business growth in their enterprises. Those that had accessed the training had experienced business growth as a result. This study was important as it indicated how women running SMEs can make use of business development services to mitigate the many challenges that they experience in their businesses that limit their business growth. This research therefore recommends that women in small and micro enterprises need to be empowered through business development studies such as entrepreneurship, technological and marketing training in order to achieve growth potential in their businesses hence making significance contribution in the economy at large.