DETERMINANTS OF SMALL AND MEDIUM-SIZED ENTERPRISES ABILITY TO DO BUSINESS WITH LARGE CORPORATIONS IN NAIROBI COUNTY
Abstract
Abstract
Prior studies on small and medium-sized entreprises (SMEs) have focused on a number of aspects for instance, the challenges affecting SMEs among other aspects. The present study shifted focus and sought to establish the determinants of SMEs’ ability in doing business with large corporations in Nairobi County in Kenya. The determinants examined included: financial performance, capacity enhancement, access to finance and corporate governance. The study targeted a stratified sample of 114 SMEs located within Nairobi. Primary data were analysed using factor analysis and OLS regression. The study established that a number of SMEs do business with large corporations, the main source of the interaction being perception of improved business performance. In terms of the determinants, the study established that the key determinants influencing SMEs’ engagement with large corporations included capacity enhancement, access to finance and corporate governance. The study established that enabling SMEs to engage in business with large corproations is one of the ways of helping them upscale and transition into medium and even large status.
Key words: Financial Performance, Capacity Enhancement, Access To Finance, Corporate Governance
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DOI: http://dx.doi.org/10.61426/sjbcm.v4i2.477
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