Factors Influencing Sustainable Growth In Small And Medium Enterprises: A Case Of Avery East Africa Limited
This research was undertaken to explore the factors that influence sustainable growth of small and medium enterprises, and developed instruments that were used to assess the conditions that need to be present in the business environment in order to enhance the likelihood of successful and sustainable growth of the business. The objectives of the study were to assess how marketing strategies used by managers influence sustainable growth in SMEs, to assess how research strategies influence sustainable growth in SME’s, to examine how competition influences the sustainable growth in SMEs and to establish how changes in technology influence sustainable growth in SMEs in Nairobi.The descriptive research design was employed and data was collected mby means of questionnaires administered to 45 employees of Avery East Africa which was the case on study. Content analysis was also used. To achieve these objectives the researcher carried out a case of Avery EA Limited. Data was obtained from all the 45 employees from all departments in the organization. The findings indicated that there are necessary strategies to be adopted to ensure that the company remains in constant growth throughout its lifetime without stalling or slowing down which is the case with most SMEs that are lucky enough not to die after a short while. The marketing and research strategies are among the important factors of sustainable growth while competition, technological, political stability and market reforms are the other factors to be considered. This study recommends the management should embrace the concept of innovation, cost leadership, marketing initiatives, and globalization and also to embrace customer intimacy. Respondents strongly agreed that marketing initiatives have positively impacted on the sustainable growth of the firm and that strategy to move from existing market positions to new markets is equally important in determining the sustainability of the firm’s growth. The study also found out that price reduction is a major factor in sustainable growth in small and medium enterprises. The study further established that sustainable growth at Avery is brought about by product differentiation and customer intimacy. Similarly, a high value for innovation as one of the research strategies that highly influence the sustainable growth and product development, competition within the industry and technology all need to be considered when working towards keeping the business growth consistent.This study recommends that the management should have a continuous and unending process of marketing initiatives and embrace globalization including franchising and partnerships. The management should also come up with research strategies and embrace innovation and product development to keep the company an edge above the rest.