EFFECTS OF EDUCATION ON THE PERFORMANCE OF SMALL ENTERPRISES IN KENYA: A CASE STUDY OF GIKOMBA MARKET, NAIROBI.
DOI:
https://doi.org/10.47604/ijfa.317Keywords:
SMEsAbstract
Purpose: The key objective of this research was to establish the relationship, if any, between education/training and the performance of small enterprises in Gikomba market.
Methodology:This study adopted descriptive and regression analysis design and the target population for this study are the owners/managers of small business enterprises in Gikomba market, Nairobi. A sample of 68 respondents will be selected. Probability sampling was used whereby stratified random sampling will be grouped into two or more relevant strata. This study used both primary and secondary data collected using questionnaires and secondary data collection data guide. Primary data was collected for all variables for a period of 3 years (2010 to 2012). Data analysis was used using both descriptive and inferential statistical methods. Descriptive statistics will include; frequencies, mean and standard deviation. Data analysis output was presented using graphs and tables. Inferential statistics will include regression and ANOVA tests.
Results:The results indicate that Education greatly influences the financial and non-financial factors in the SMEs sector. However the level of education is not the key factor to SME’s existence and success. If the business management training education is well implemented, all the small enterprise traders at Gikomba open air market should be in position to breakeven and also to manage their business performance as expected.
Policy recommendation: The study recommends that policy makers should adopt the findings of this study. According to the results, exchange rates, public debt and interest rates were the significant determinant of market capitalisation of listed companies in Kenya during the study period. Macroeconomic variables should be factored when formulating policies on market capitalisation. This study recommended that, since the Kenyan stock market is not really exposed to the negative effects of currency volatility, government can use exchange rate as a policy tool to attract foreign portfolio investment.
Downloads
References
Anonymous (1998, Nov/Dec). Top tips for finding and keeping good people. Nonprofit
World, 16, 53.
Baldwin, J. and Johnson, J. (1995). Human Capital Development and Innovation: The
Case of Training in Small and Medium-Sized Firms, Statistics Canada, No. 74-11F0019MPF, No. 74, 44 p. Ottawa.
Baldwin, J. and Peters, V. (2001). Training as a Human Resource Strategy: The
Response to Staff Shortages and Technological Change, Statistics Canada, No. 154-11F0019MPE, No. 154, 38 p. Ottawa.
Bartram, S. and Gibson, B. (2000). The Training Needs Analysis Toolkit, 2nd ed. Amherst, MA:
HRD Press Inc.
Betcherman, G., McMullen, K. and Davidman, K. (1998). Training for the New Economy: A
Synthesis Report.Canadian Policy Research Network, 117. Ottawa.
Betcherman, G., Leckie, N. and McMullen, K. (1998). Barriers to Employer-Sponsored
Training in Canada.Canadian Policy Research Network, 28. Ottawa.
Bygrave, W.D. and Hofer, C.W. (1991).Theorizing about entrepreneurship.Entrepreneurship Theory and Practice, 16(1), 13-22. Retrieved from: http://www.babson.edu/entre/fer/papers. (Accessed on 8/1/2013)
Carland, J. W., III, Carland, J. W., Carland, J. A. and Pearce, J. W. (1995). Risk taking propensity among entrepreneurs, small business owners, and managers.Journal of Business and Entrepreneurship, 7(l): 15-23.
Chowhan, J. (2005). Who Trains? High-Tech Industries or High-Tech Workplaces?
Statistics Canada, No. 11-622-MIF, No. 006, 69 p. Ottawa.
Chrisman, J. J., and McMullan, W. E. (2004).Static economic theory, empirical evidence, and the evaluation of small business assistance programs.Journal of Small Business Management, 34(2), 56-67.
Gartner, W.B., Starr, J.A. and Bhat, S. (1999). Predicting new venture survival: an
analysis of the anatomy of a start-up: Cases from INC Magazine.Journal of Business Venturing, Vol. 14, pp. 215-32.
Gupta, K. (1999). A Practical Guide to Needs Assessment. San Francisco: Jossey-
Bass/Pfeiffer.
Harris, A.S. (1994). Promoting a promising future.Black Enterprise, Vol. 25, No. 5, p.
Hisrich, R.D., Peters, M. (1995). Entrepreneurship, 3rd edition.Irwin/ Mc-Grawhill.
I.L.O. (2002).Employment Creation and Employment Quality in African Manufacturing Firms.Geneva: International Labour Office.
K-REP Holdings LTD. and the International Center for Economic Growth (ICEG) (1999) :
National Micro and Small Enterprises Baseline Survey.
Kennedy, J and Brennan, J. (2005 May 5th). The Impact Of Education and Experience on Performance of New Ventures. Graduate School of Management, The University of Queensland, Australia. Retrieved on 6/1/2013 from http://www.sbaer.uca.edu/research/1998/ICSB/f005.htm
Kinyanjui, M. (2005). Tapping opportunities in enterprise clusters in Kenya: The case of
enterprises in Ziwani and Kigandaini. Working Paper 525, Institute for Development Studies, University of Nairobi.
Kitching, J. and Blackburn, R. (2002).The nature of training and motivation to train in small firms.Small Business Research Centre, Kingston University, London.
Kroon, J., and Moolman, P.L. (1992).Entrepreneurship.Potchefetroom, South Africa:
Central Publications, Potchefetnxim University for Christian Higher Education.
Leckie, N., Léonard, A., Turcotte, J. and Wallace, D. (2001). Employer and Employee
Perspectives on Human Resource Practices.Statistics Canada, No. 71-584-MPF, No. 1, 89 p. Ottawa.
Maniis, P. and Israelstam, I. (1997). Businesses that Don’t Train their People Go Off the
Rails in the Workplace.Star Newspaper ( February 26, 2.)
Mayfield, W.M. and Weaver, R.Y. (1997). The determination of the teaching
methodology of entrepreneurship as established by the underlying philosophy of pragmatism. ICSB World Conference Proceedings, San Francisco, CA .
McClelland, S. (2002).A training needs assessment for the united way of dunn county,
Wisconsin. University of Wisconsin-stout.Manuscript for publication.
McCormick, D. (1992). Why small firms stay small. Working Paper No. 983.
McIver Consulting (2003 a).The Impact of Demographic Trends on Skills Needs. EGFSN
Report.Manuscript for publication.
McMinn, R.D. (2000). Teaching microeconomics: Tips and techniques. Academy for Economics
and Economic Education Journal, Vol. 3 No. 1, pp. 22-6.
Mueller, S.L. and Thomas, A.S. (2000). Culture and entrepreneurial potential: A nine-
country study of locus of control and innovativeness. Journal of Business Venturing, Vol. 16, pp. 51-75.
Njeri, F. (2007). An evaluation of the role of small and micro-enterprises in employment creation in Kenya: A case study of wood and metal manufacturers along Outering road, Nairobi. Phoenix Publishers.
Njeri, F. (2007). Role of SMEs in employment creation: A case of small and micro wood
and metal manufacturing firms in Mutindwa market along Outering road in Nairobi. Manuscript for publication.
Nonis, S.A. and Hudson, G.I. (1998). Measuring student perceptions of teaching
effectiveness. South-Western Marketing Association Proceedings, pp. 1-7. Dallas, TX.
Oketch, H. O. (2000). Micro and small enterprises in Kenya: Agenda for improving the policy environment. ICEG, Nairobi.
Peacock, R. (2000). Perceived Causes of Small Business Failure: A Research Note.American Journal of Small Business, Vol. 8, Issue 1, pp. 15-19.
Pretorius, M. (2000 a). A proposed training method for the transfer of skills to enhance
micro and small business start-ups in South Africa. Paper presented at the International Vocational Education Training Association Annual Conference, Mauritius.
Pretorius, M. (2000 b). Evaluation of a proposed training methodology to enhance micro
and small business start-ups in South Africa. Proceedings of the 46th ICSB World Conference, Brisbane, June.
Pretorius, M. (2001). A training model to enhance micro and small business start-ups in
South Africa. D-Tech thesis, Technikon, Pretoria, S.A.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
