Determinants of Growth of Youth Led Micro and Small Enterprises In Kirinyaga County, Kenya

Abstract

This study sought to evaluate the growth of youth-led MSEs in Kirinyaga County with the aim of coming up with recommendations that will help the enhancement of growth of the initiatives to spur the growth of MSEs. The study’s objectives were: To assess the effect of finance availability on the growth of youth-led MSEs; to analyze the extent to which management contributes to the growth of youth-led MSEs; to explore the influence of technology on the growth of youth-led MSEs; and to analyze the effect of laws and regulations on growth of youth-led MSEs. The study adopted a descriptive approach. Stratified random sampling was used to select respondents from 96 Micro and Small Enterprises which represents 20 percent of the target population of 481 MSEs in Kirinyaga County. Data was collected using pre-tested questionnaires and analyzed using Statistical Package for Social Sciences. The study findings indicated that availability of finance, proper management skills and good business laws and regulations are important elements to the growth of Youth led MSEs. Finally, though the future for any business will depend on technology, this study found that technology was not important for the growth of Youth led enterprises mainly because of the cost associated to installation of technology and the nature of customers who are not technologically informed. The study recommends deliberate efforts be made by the Government to sensitize the Youths on availability of Government loans for their uptake. MSE specific courses/trainings should be introduced in secondary schools to prepare the Youths on the necessary business skills needed to start and run a business. The Government should subsidize the cost of technology adoption to enable youths embrace the same. The National and County Government should endeavour to enact and operationalize laws and regulations which enhance business initiatives.