STRATEGIC DIRECTION AND STRATEGY PERFORMANCE IN YOUTH-LED SMALL AND MICRO ENTERPRISES IN KISII COUNTY, KENYA
Abstract
The success of an organization is not random but is largely determined by the decisions made by its strategic leaders. Micro and Small Enterprises (SMEs) held a significant presence in various sectors of the Kenyan economy, accounting for a large proportion of private sector enterprises. According to the State Department of Industrialization (2020), SMEs contributed 24% of the country's GDP, represented over 90% of private sector enterprises, and made up 93% of the total labour force. Empirical literature suggests that strategic implementation depends on various factors, including strategic leadership. However, the applicability of these strategies has not been tested or empirically studied in the context of youth-led SMEs in Kisii County. The main objective of the study was to determine the effect of strategic direction on strategy performance in youth-led Small and Micro Enterprises in Kisii County, Kenya. A descriptive research design was employed in the study, targeting the 106 managers of registered youth-led Small and Micro Enterprises in Kisii County. A census of these 186 managers was used. Primary data was collected through a questionnaire and analysed both descriptively and inferentially. The study found that strategic direction significantly had an effect on strategy performance in youth-led SMEs. Recommendations included enhancing strategic planning and situational analysis capabilities, with policymakers by providing support through training and mentorship programs.
Key words: Strategic Direction, Strategic Leadership, Strategic Performance
CITATION: Ratemo, K. M., & Juma, D. (2024). Strategic direction and strategy performance in youth-led small and micro enterprises in Kisii County, Kenya . The Strategic Journal of Business & Change Management, 11 (4), 332 – 343. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3085
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3085
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