INFLUENCE OF STRATEGIC FORMULATION PRACTICE ON THE PERFORMANCE OF SMALL MEDIUM ENTERPRISES IN THE SUB COUNTY OF LIKUYANI, COUNTY GOVERNMENT OF KAKAMEGA; KENYA
Abstract
Small and Medium Enterprises (SMEs) are increasingly recognized as important drivers of economic growth, productivity, innovation and employment; hence, are widely accepted as a key aspect of economic dynamism. Owing to the contribution of Small Medium Enterprises in various economies and the world at large, they are required to be profitable, survive, grow and hence remain sustainable and competitive. However, Small Medium Enterprises face various challenges in their quest to achieve their goals and expand their market share. Among these challenges, is management ineptitude, which often leads to the collapse of many Small Medium Enterprises, to address the challenges of management, Small Medium Enterprises are encouraged to adopt strategic management strategic practices. The objective of the study was to determine the effect Strategic Formulation Practice on Performance of Small Medium Enterprises in the Sub County of Likuyani, County Government of Kakamega; Kenya. This study employed descriptive research design. The target population of the study composed of retail traders of the Sub County of Likuyani. Krejcie and Morgan formula was applied for determination of sample size of research activity. The study used structured questionnaire as an instrument of primary data collection. The study focused on descriptive and inferential statistics that was analyzed and computed by use of SPSS version 24. The results of the analyzed data indicated Strategic Formulation Practice having significant effect on Performance of Small Medium Enterprises in the Sub County of Likuyani, County Government Kakamega; Kenya. The study recommended for the Small Medium Enterprises to embrace Strategic Formulation Practices for improvement of Performance. The study embraced for further research on similar variables using different methods in different Small Medium Enterprises.
Key words: Strategic Management Practices, Strategic Formulation Practices, Performance
CITATION: Furaha, M. W., Kadima, M. J., & Juma, D. (2021). Influence of strategic formulation practice on the performance of small medium enterprises in the sub county of Likuyani, County Government of Kakamega; Kenya. The Strategic Journal of Business & Change Management, 9 (1), 45 – 58.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2163
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