Small and Medium Enterprises (SMEs), still dominate the economic landscape of most countries and have been recognized in contributing greatly to their GDPs. The SMEs form a larger percentage of businesses that operate in Kenya as compared to the large companies. The Government of Kenya in their vision 2030 have tried to put enabling environment in their quest to be a middle economy for growth of small business enterprises by that time, although the owners/directors of small business continue to face challenges in running these enterprises.

The general objective of this study was to identify the factors that lead to slow growth of small business enterprises with specific reference to Nakuru town. The study was guided by specific objective, that is to find out whether lack of management skills, whether inadequate capital to slow growth of small business enterprises.

The literature explored four main influencing factors in the study, namely, management skills and  adequate working capital forming the independent variables in the theoretical/conceptual framework that influence the depend variable, that is slow growth in small businesses.

The study adopted a descriptive research design on a target population of 200 small businesses operating in Nakuru town. The primary data was obtained through questionnaires and interviews and data analysis using descriptive statistics

Overall study found that Management Skills and Adequate Working Capital, individually influence of Growth of Small Business Enterprises of 71%, 85%, 92%, and 77% respectively. Thus Business Registration posed as having the highest influence to growth of Small Businesses.

Key Word: Small Businesses

Full Text:



Amando, M. (2005). Stimulating the growth of microfinance in the Philippines .Central Bank of Philippines

Aluoch, T. (2004), Significant of SMEs sector in Kenyan economy: Institute of development studies, University of Nairobi, Nairobi

Armstrong, M. (2004), A handbook of Human Resource Management Practices, 9th Edition. London: Kogan Page

Anyanwu, C. M (2004). Microfinance Institutions in Nigeria: Policy, Practice and Potentials.

Central Bank of Nigeria, Abuja, Nigeria

Atieno, S (2009). Styles of overcoming and managing small business challenges, Nairobi

Baumann, T. (2001). Micro-finance and poverty alleviation in South Africa. Bay research and consultancy services Cape Town

Barringer, B. R., and Jones, F. F. (2004). Achieving rapid growth: Revisiting the managerial capacity problem. Journal of Developmental Entrepreneurship, 9(1), 73–86.

Barringer, B. R., Jones, F. F., and Neubaum, D. O. (2005). A quantitative analysis of t

rapid-growth firms and their founders. Journal of Business Venturing, 2, 663–687.

Barrow, C. (2004). The Essence of Small Business, (1sted). New Delhi: prentice-Hall.

Benzing and Chu, (2009); Tarmidi, (2005). The influence of small enterprises in economy.

Boeker,W., andKarichalil, R. (2002). Entrepreneurial transitions: Factors influencing founder departure. Academy of Management Journal, 45, 818–826

Brown, S & Harris, K. (2010). Towards an Understanding of Consumer Perspectives on Experiences. In Journal of Services Marketing, 24(7): 518-531

Bryman, A., & Bell, E. (2007). Business Research Methods. New York:Oxford University Press

Carson, D., Gilmore, A., Perry, C. & Gronhaug, K, (2001). Qualitative Marketing Research. London: Sage

Chogi B. F. (2007), The impact of mobile phones technology to small and medium enterprises/jua kali(MSEs) – In CPR South Chennal

Clement, K., Wang, K., and Ang, B. (2004). Determinants of venture performance in Singapore. Journal of Small Business Management, 42, 347–363.

Cloete, E., Courtney, S., & Fintz, J. (2002), Small Business Acceptance and Adoption of e-commerce in the Western-Cape Province of South Africa. 7th ed.: New England

Cooper,D.R. & Schinder, P. (2008),Business Research Methods 8th ed.New York: McGraw

Christen R.P., Ryne, E.Vogel, R. &McKen, C. (2005) .Maximizing outreach of Microenterprise Finance: An analysis of Successful Microfinance Programs. Vol.39 (6):131

Deloitte & Touché LLP, (2007), Economic Impact of mobile phones in Bangladesh, Malaysia

David K., (2009). Components of Entrepreneurial Skills, Miami, Rocket Publishers.

Dictionary of Business Terms. (2007). New York: Barron’s Educational Series, Inc

Dondo & Ngumo. (2003) Entrepreneurship an International Perspective. Oxford Butterworth Heinman, PP 20-22, PP 46-48

Duncombe R. & Heeks (2007). Using the livelihoods framework to analyze ICT applications for poverty reduction through micro-enterprise: Information technology and international development 3 (3): 81-100

Glien & Glien (2003). Influences of development strategies in the SMEs.Southerton

Government of Kenya, (2008). Economic Survey. Nairobi, Kenya: Government Printers

Government of Kenya (2009); Reducing Default Rate among SMEs, GOK Press

Haswell, S, & Holmes, S. (1989).Estimating the Small Business Failure Rate: A Reappraisal. Harper M., (2003). Key writings on Microfinance, ITDG Publishing, Samskriti, New Delhi,


Harveston, P. D. Davis, P. S, and Lyden, J. A. (2011). Succession planning in family business: The impact of owner gender. Family Business Review, 10(4), 373–396

Jensen R. (2007). The digital provide: Information (technology) market performance, and welfare in the South Indian fishery sector, Quarterly Journal of Economics 122(3):879-924

Journal of Small Business Management, Volume 27, PP68-74

Hayward, S. (1996).A Study to Determine the Reasons for Failure of Small Business in the UK. London: Story Hayward

Jagun A. Heeks R. Whalley J. (2008). The impact of mobile telephony on developing country micro-enterprise: A Nigeria Case Study. Information Technology and International Development 4(4):47-65

Janakiram, S. (2005), Rural Information and Knowledge System. A case study from Russia. Washington

James T, (2000). Entrepreneurship as an individuals career path, London, John and Baker.

Jeyanth, K. (2003). Institutional Preparedness and Sustainability of Micro Finance Institutions During Post Disaster Scenario. Disaster Prevention and Management Vol.16 No 1, 2007

Kapila, S. (2006). Unleashing the Entrepreneurial Potential of Micro and Small Enterprises in Kenya: Some experiences and directions. A thematic working paper prepared by commission for legal empowerment of the poor

Kimani F. K. (2010). The cash conversion cycle and liquidity SMEs 9th Edition, Mount Kenya Publishers, Nairobi

Kombo & Tromp, (2006), Research Methods for Social Studies: Pauline Publishers, Nairobi

Kothari, C.R. (2008), Research Methodology; Methods & Techniques (2nd Revised Edition). New Deihi: New Age International Limited Publishers

Kotler, P. & Keller, L.K. (2006), Marketing Management, (12th edition). New Jersey: Courier-Kendaville Press

Kumar, R. (2005), Resear Lincolin, A (2005). An assessment of performance and sustainability of micro finance

Ledger Woods, (2001), Financial Institutions: A case study of village credit institutions in Gianyar, Bali, Indonesia ch Methodology; Astep by Step Guide for Beginners, (2nd Edition). New Delhi: Sage Publishers

Miller, C. & Friesen, P (2002). International Entrepreneurship: the intersection of two research paths: Academy of Management Journal, Vol. 43 No. 5, pp. 902-6

Mitullah, W.V. (2003), Paper presented at the Urban Research Symposium on Urban Development for Economic Growth and Poverty Reduction, Dec.15-17. Street trade in Kenya

Morris, M. H. Miyasaki, N. N. Watters, C. E, and Coombes, S. M. (2006). The dilemma of growth: Understanding venture size choices of women entrepreneurs. Journal of Small Business Management, 44, 221–244

Morrison, A, et al. (2001) Entrepreneurship in the Hospitality; Tourism and Leisure industries. (1st Ed).London: Butterworth- Heinemann

Mugenda, O. M and Mugenda A. G., 2003. Research Methods. Act Press. Nairobi.

Mugenda, A,B. (2008), Social Research Methods: Theory and Principles, Nairobi

Munro, D., (2005). A Research Methods handbook. Oxford Press. Leeds

Murithi, (2004).Challenges facing medium size enterprises. Small development Services.Vol.1

Nakuru Development Plan, 2008. A handbook of the Nakuru County Council plan

Nyambega, S. (2005). Human Resource Management: A biblical Perspective. Nairobi: Uzima Publishing House

Omondi, G. (2005). Factors influencing the establishment of micro finance schemes in Kenya.

Orodho, A.J. (2003). Elements of Educational and social Science research (1sted). Nairobi: Masola Publishers

Pasanen, M. (2003). SME growth strategies: Organic or non-organic? Journal of Enterprising Culture, 15, 317–338

Peter, C. (2003).Key Marketing Skills (2nd Ed). Noida, India: Kogan Page Book Power.

Neuman, W.L., (2000), Social Research Methods: Qualitative and Quantitative Approches: Allyn & Bacon Publishers

Sceiner (2004). Organizational Culture: Redefining the role of culture in shaping the organizational future; Journal of economic literature 28, p 166-189

St-Jean, E., Julien, P., and Jos´ee, A. (2008). Factors associated with growth changes in gazelles. Journal of Enterprising Culture, 16, 161–188

Stokes, D. & Wilson, N. (2006).Small Business Management and Entrepreneurship. (5th Ed). London: Thomson Learning

Steven M. (2007). Grow Business; Reduce Shrinkage, The 2% Solution, LP Innovations. New York: Prentice Hall

UN Economic and Social Commission for Asia and Pacific (2006). Microfinance for poverty Reduction: Building Inclusive Financial sections in Asia and the Pacific. Development paper No. 27, UNESCAP, New York

Samuel, Shah, Hadingham, (2007), Mobile communication in South Africa, Tanzania, and Egypt. Results from community and business surveys. Moving the debate forward: The Vodafone policy paper no. 3 2005.

Tillman, A (2006). An assessment of performance and sustainability of micro finance

institutions: A case study of village credit institutions in Gianyar, Bali, Indonesia.

Tulchin, D.P. (2004). Positioning Microfinance Institutions for the Capital Markets, Social Enterprise Associates

Upchurch, A. H. (2005), Cost Accounting: Principles and Practice; Harlow: Financial Times/Prentice Hall

Wanjohi, A.M.& Mugure, A. (2008). Factors Affecting Growth of SMEs in RuralAreas of Kenya. A case study of ICT Firms in Kiserian Township, Kajiado.

Wawire N.H. & Nafukho F. M. (2010). Factors affecting the management of women groups’ micro and small enterprises in Kakamega District, Kenya, Journal of European Industrial Training . 34, (2), 40-57.

Weinzimmer, L. (2000). A replication and extension of organizational growth determinants. Journal of Business Research, 48(1), 35–41

Wijewardena, H., Nanayakkara, G., and De Zoysa, A. (2008). The owner/manager’s mentality and the financial performance of SMEs. Journal of Small Business and Enterprise Development, 15(1), 150–161

Wichmann, H. (2001). Accounting And Marketing – Key Small Business Problems -American Journal of Small Business, 7, (spring), PP19-26

Wynarczyk, P. Watson R., Storey D. J. Short H. &Keasey K. (2001). The managerial Labour Market in Small & Medium Sized Enterprises London: ButterWorth-Heinemann

Veebek, P.D., (2001), SMEs in a cultured approach in Developing countries. New York, Prenti


  • There are currently no refbacks.