FACTORS AFFECTING GROWTH OF SMEs IN MOTOR VEHICLE MECHANICS INDUSTRY IN KIAMBU COUNTY
Abstract
The role played by small and medium size enterprises has been recognized in the world over due to their ability to create employment at low cost, contribute to Gross Domestic Product, alleviation of poverty, equitable distribution of income, utilization and conservation of local resources, earning and conserving foreign exchange, provision of goods and services at reasonable cost .However, despite their immense contribution to the economies they are faced with a myriad of challenges including; access to finances and technological growth.
The specific objectives of the study were to find out how access to finance and technological use affect growth of the SMEs with particular reference to the Motor Vehicle Mechanics in Kiambu County.
The target population was 156 garages under five operations and a sample of 47 garages was selected from different categories of garages according to service rendered using stratified random sampling. Data was collected using questionnaires and interviews. For the main purpose of this research, the study collected primary data and compared it with the available secondary data for the literature review. Descriptive statistics were used mainly to summarize the data. This included percentages and frequencies. The study concluded that human resource development affected the performance of the business to a great extent. Access to finance affected performance of SMEs to a great extent as it limited the entrepreneurs’ ability to take advantage of opportunity when they arose. Technology affected the businesses to a very great extent by facilitating communication with both the supplier and customers. The study recommends the Government of Kenya works out on how to finance SMEs and technology be included in aspects of the business.
Key Words: Access to Finance, Technology, SMEs, Motor Vehicle Mechanics
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i4.359
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