Business development services: the implication on the growth of micro and small enterprises. A survey of micro enterprises located at Gikomba, Nairobi, Kenya
Mutisya, Joseph Muindi
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This study focused on determining the implications that BDS has made to the growth of micro and small scale enterprises located around Gikomba. The study aimed at establishing whether Services related to networking, technological services, market access and entrepreneurial training Have implications on the growth of MSEs. Literature shows that BDS has been imperative in Enhancing business operations. A Report from Government of Kenya indicates that there are Several agencies and Non Governmental Organizations that continue to provide these essential Services to the business people. However, there are some service providers who have closed Down their operations. However, MSEs continue to record increased growth in the sector. There Being few studies that seek to find out whether increase in MSEs growth could be as a result of BDS provision, there is a gap that researcher need to fill. Therefore, this study established that There are BDS implications on the MSEs growth. Cross sectional descriptive survey was utilized, In the study which is the most applicable research design. The target population in the study was 13,636MSEs. Through stratified sampling technique, a sample size of 150 was selected on a Simple random basis which is a percentage of 1.1% of the entire population. This comprised comprise of 91 elements from the microenterprises and 59 from small enterprises. Questionnaires were distributed to all the selected samples but seven of them did not provide Their responses. Therefore, the response rate was 95% of the selected samples. The study utilized A mixed research method that entailed both qualitative and quantitative research. Themes related To the research questions in the study were identified and data was then coded and entered in the Computer for analysis using Statistical Package for Social Scientists (SPSS). The findings were Presented in figures and interpretation of the findings were be made. From the findings, it was Apparent that BDS has substantial impacts on the growth of MSEs. It was established that Market access, Networking services, Technological supply services and entrepreneurial education have lead to growth of MSEs. This was noted through increased profits, opening of new branches, employing more workers and increased return on investment. It was however noted that the BDS provision is not uniform to all businesses. There are some businesses that have not taken advantage of services provided to enterprises. Most of them sited unavailability of adequate services providers as a challenge to effective BDS provision. Based on the findings, this study recommends that there is Need for a transformed BDS approach. There is potential in Gikomba area to transform from the existing traditional BDS approach to market development approach in order to enhance business operations. The transformation processes needs a coordinated and concerted effort by all stakeholders including the government. They should define their roles in facilitating and providing Business Development services. The selected Institutions should understand their position in the market and develop strategic directions for their interventions accordingly.