INFLUENCE OF RISK MANAGEMENT STRATEGIES ON PERFOMANCE OF SMALL AND MEDIUM ENTERPRISES IN CONSTRUCTION INDUSTRY IN KAJIADO COUNTY,KENYA
Abstract
The purpose of this study was to establish the influence of risk management strategies on performance of small and medium enterprises in the construction industry in Kajiado County. The study was limited to 1380 registered MSEs which gave insights on the various performance related problems faced by the enterprises in the county. Sample size of 92 small and medium enterprises was chosen. The design of this research was a descriptive survey research. The collected data was analyzed using both quantitative and qualitative data analysis methods. Quantitative methods involved a descriptive analysis such as the frequencies. Data from questionnaire was coded and logged in the computer using Statistical Package for Social Science version 22. The study further adopted a regression analysis to determine the relationship among the variables at. 05 level of significance. It was notable that there exists a strong positive relationship between the independent variables and dependent variable. It showed that the independent variables in the study were able to explain 62.10% variation in the performance of SMEs in the construction industry in the study area while the remaining 37.90% was explained by the other variables or other aspects outside the model. This implied that the set of the independent variables played a significant role on the performance of SMEs in the construction industry in Kenya. The study revealed that the variable statistically, strongly and significantly correlated to performance of SMEs in the construction industry as they had a positive relationship with the dependent variable. The study recommended for the organizations to identify and deal with risks proactively: The study recommended for the problem analysis to identify the negative aspects to reduce negative impact on the business profits. The study recommended for the risk monitoring and evaluation strategies to enhance performance of SMEs. Additionally, the study did not tie the variables explained in this study as the only factors of risk management strategies. The study recommended for further study to identify other factors affecting performance of SMEs.
Key Words: Risk Identification, Risk Evaluation, Risk Handling, Risk Monitoring, Performance of SMEs
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.684
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