The Effect of Key Success Factors on the Growth of Micro and Small Enterprises in Kenya: A Case of Agrovets in Murang’a County, Kenya

Abstract

Micro enterprises are ubiquitous in Africa, yet many of them never seem to graduate to small or medium enterprises. It is against this background that this study sought to assess the effect of key success factors on the growth of micro and small enterprises (MSEs) in Kenya, specifically agrovets in Murang’a County. The objectives of the study were to establish the key success factors for the growth of MSEs (agrovets), identify growth within the MSEs (agrovets), and determine the effect of identified key success factors on the growth of MSEs (agrovets) in Murang’a County. The study applied descriptive research design and the target population was 192 registered agrovets in Murang’a County. A sample of 99 respondents was calculated and selected using a simple random sampling technique. Data was collected using questionnaires and analysed using Statistical Package for Social Sciences (SPSS) version 23.0. Study findings indicated that most MSEs used internal financing and borrowed from SACCOS to supplement their financing. There was very little knowledge or awareness of existing government finance programs and none of the respondents had successfully accessed funding from these programs. The study analyzed the growth of businesses based on the increase in sales turnover and an increase in the number of employees. The findings indicated there was very little growth over the last four (4) years with only 30% of the businesses recording growth and the key success factors that influence growth are the education of the business owner, the age of the business, the location of the business concerning proximity to similar businesses and access to finance. Based on the findings the study recommended the increased capacity building of business entrepreneurs and improved access and availability of affordable financial products as the most critical areas that would enhance business growth.