Abstract

Mombasa County has a number of SMEs in the Central Business District some of which have grown; others are now experiencing growth while majority have not grown. This research project sought to establish the strategic factors influencing the growth of SMEs in the CBD of Mombasa County. Specifically this study examined the extent to which the characteristics of owners and managers influence growth of SME, assessed the extent to which the characteristics of the firm influence SME growth and determined the extent to which the SME strategy adopted influence SME growth. The research design adopted for this study was descriptive cross-sectional survey. Stratified random sampling was used to select SMEs and respondents. The research utilized both secondary data from other sources and primary data collected using questionnaires to carry out the study. Descriptive statistical tools assisted the researcher in describing the data while analysis was done quantitatively by use of Ms Excel and Statistical Packages for Social Scientists (SPSS). This included frequencies, mean, standard deviations, tables and percentages. The research found out that the characteristics of the owners and managers influence growth of SMEs in Mombasa CBD, the characteristics of the firms influence SME growth and that strategic planning influences SME growth. Thus, the study recommends that business owners invest in education and training programs to improve their knowledge on business matters especially financial management, strategic planning and implementation. The study also recommends SMEs to invest in enhancing their reputation and increase their business networks and distribution channels. The study further recommends that SMEs should invest more in strategic planning as this was found to greatly enhance their growth.

Authors and Affiliations