Relationship between Human Capacity Building and Performance of Micro and Small Enterprises (Mses) In Kisumu City

Abstract

This*paper* focused*on* the*relationship*between*human*capacity*building*and* performance*of*micro*and*small*enterprises*(mses)*in*kisumu*city.*Despite*the* central* role* of* mses* in* employment,* industrial* transformation* and* poverty* reduction,* the* competitiveness* and* growth* prospects* of* Mses* Fall* below* the* levels* required* to* meet* challenges* of* increasing* and* changing* basis* for* competition.* Effective*management* of*a*company’s*human*resources* is*key*to* business*survival*in*today’s*world.*Human*capacity*building*can*be*particularly* important* for*small* firms.*The* need* for*human* capacity* building* for*SMEs* in* Kenya*is*of*great*significance*if*we*are*to*increase*the*performance*and*growth* of*SMEs*and*at*the*same*time*reduce*inefficiency,*low*productivity*and*the*rate* of*failures*of*small*firm.*A*descriptive*research*design*was*used*to*carry*out*the* study.* A* sample* of* 320* mses* was* selected* for* study* using* quota* and* convenience* sampling* technique.* Convenience* sampling* technique* is* used* to* simplify* data* collection* procedures* and* to* avoid* the* complications* of* simple* random* method* since* the* researcher* just* picks* on* those* who* happen* to* be* available*and*are*willing,*until*the*desired*size*is*attained.*Both*qualitative*and* quantitative*research*designs*which*were*descriptive* in*nature*were*used;*as* Gall*and*Borg*noted,*“Descriptive* studies*by*nature*emphasis* interpretation.”* The* target*population* of*320*mses*was*drawn* from* the*7012*businesses* that* are* licensed* by* the* Municipal* Council* of* Kisumu.* The* study* revealed* that* appropriate* business* training* was* considered* a* very* important* contributing* factor* to* growth* and* Lack* of* business* management* training* facilities* was* perceived*as*a*major*barrier*to*growth.*One*of*the*reasons*for*this*could*be*the* fact* that*majority* of* respondents* had* not* been* formally* trained* in* the* skills* needed*to*operate*an*enterprise*professionally.The*study*recommended*that*if* training*is*to*be*offered*to*MSEs,*it*should*encourage*as*little*time*away*from* the*workplace*as*possible*and*that*it*should*be*very*flexible*and*inexpensive.*