INFLUENCE OF FINANCIAL PROGRESS MEASUREMENT ON THE GROWTH OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN MACHAKOS COUNTY
Abstract
The small medium enterprises (SME) plays an important role in availing goods and services, poverty easing, enhancing competition, promoting innovation and breeding employment among other influences in economies around the world. Due to its significant role, diverse initiatives aimed at supporting and sustaining the growth of SMEs have been put in place. Despite these initiatives, the growth of the SME businesses is still challenged and the rate of failure still high with close to half a million small enterprises not getting to celebrate their second anniversary (KNBS, 2016). Therefore, SMEs’ own initiatives are needed to supplement the already existing private sector and government’s initiative in an effort to grow their businesses. One such initiative is progress measurement. This study established the influence of financial progress measurement on the growth of SME businesses in Machakos County. A structured questionnaire was physically distributed to SMEs across Machakos County. 289 respondents were randomly selected from a list of registered businesses acquired from the ministry of trade and cooperatives in Machakos County and asked to fill in a structured questionnaire. The results were analyzed using descriptive statistics for normality tests and regression analysis was used to determine the relationship between the variables. The results suggested that, financial progress measurement influences the growth of SME businesses. The findings of this study showed that, SMEs measure their financial performance all year round revealing high performance ratings for SME businesses. The study also found out that successful financial performance in SMEs has a positive association with the ability to manage financial issues effectively.
Key Words: SMEs, Financial Progress Measurement
CITATION: Gitari, K. J., Gichunge, E., & Rintari, A. (2021). Influence of financial progress measurement on the growth of small and medium enterprises (SMEs) in Machakos County. The Strategic Journal of Business & Change Management, 8 (3), 997 – 1007.
Full Text:
PDFReferences
ANDE (2017). State of Measurement in the SGB Sector. Aspen Network of Development Entrepreneurs.
Adefalake A. (1996). Challenges to SME growth in Kenya; D.J. Hand Statistics and the theory of Measurement, J.R. Statist. Soc. A (1996)159, Part 3, pp. 445-492.
Addy N (2017). Unifying theory and Integrating Practice; Business Performance measurement www.cambridge .org.
Amabile & Kramels (2011). The progress Principle; Guide to Using Small Wins to motivate your Team
BMI Research (2016). Economic Analysis: East Africa Will Be Growth Outperformer over Coming Decade
Bouba I. (2011). Financial performance measurement of Manufacturing Small and Medium Enterprises in Pretoria. A multiple Exploratory Case Study. University of South Africa.
Deloitte (2016). Kenya Grounding Africa’s Economic Growth.
Edwin A & Gary P (2002). “Building a practically Useful Theory of Goal Setting and task Motivation”. American Psychological Association.
Hans J. & Ranz B. (2015). Employee Satisfaction and its impact on Company Value. Dr.sc.admin. University of LATVIA, International Economics and Management
Haibo Z & Gerrit W. (2009). Determinates and dimensions of growth scientific analysis of Scientific Analysis of Entrepreneurship and SME; Netherlands Ministry of Economic Affairs; www.entrepreneurship-sme.eu
IMF. (2015). Regional Economic outlook for sub Saharan Africa April (2015).
Julia H & Scott W (2015). “Gap Analysis, objectives and strategy selection for Strategic Plan Update webinar”. Division of Behavioral health and Recovery. Washington State Department of social and health Services.
John B. et al. (2016). Customer Satisfaction for Company growth; the Roles, Responsibilities and Skills required of the Sales Force in Ghana. British Journal of Marketing Studies.Vol.4, No.5, pp.74-88 august 2016.
Joseph C. (2001). New Growth Theory, technology and learning. Review of economic Development Literature and practice NO. 4 2001.
Long J. & Freese J. (2006). Regression models for categorical dependent variables using Stata. Stata press.
Lee, N. (2014). what holds back high-growth firms? Evidence from UK SMEs. Small Business Economics, 83-19543(1).
Margaret S. (2018) “Fundera” University of Sydney.
Mbuvi, M, (2008). Causes of Failure of small scale African Businesses in Machakos District, MBA Project Kenyatta University. Nairobi: Kenyatta University Press.
Nyambura, N. (2007). The characteristics of small scale manufacturing enterprises of Gikomba Market, Unpublished M.Sc. Entrepreneurship Research paper. Nairobi.
Prairie V. (2008). Measuring Performance of Small and Medium sized Enterprises” Journal of Business and Public Affairs. Vol2, Issue 1 2008 ISSN1934-7219.
Uiyuan, M. (2009). Review on enterprise Growth Theories. International journal of Business and Management.VOL.4, No.8 .www.ccsenet.org/journal.htlm.
DOI: http://dx.doi.org/10.61426/sjbcm.v8i3.2075
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.