The relationship between social networks and ' growth of small and micro enterprises in Kisii town

Abstract

Tills sought to establish the relationship between social netwoks and growth of SMEs in Kenya. The study tested the fundamental assumption that social networks are important to SME growth. This assumption underpins most social network research conducted in the field of entrepreneurship and is seldom questioned. This research sought to establish the relationship between social networks and the growth small and medium enterprises in kenya. It is noted that while a lot of work in this area has been done in Western Industrialized countries, little by way of serious research has been undertaken in African countries. The role of networks in enterprise development and growth in these countries remains unexplored and therefore unclear. It is argued here that research on networks needs to be contextualized if it is to gain currency. This research employed descriptive research design and multiple regression analysis to establish the relationship between the independent variable (social networks) and the dependent variable(SME growth). This reserch report found out that there was a strong relationship between SME growth and social networks. The report therefore recomends the building of social networks by entrepreneur since development of social network is an activity of increasing social, personal and business contacts of an entrepreneur. The report identified that social network can be physical or virtual resources and that the main aim of building social structure is to fulfill the needs of entrepreneurs. Entrepreneurs build these relations by contacting the people they know or by contacting the people who are known by his contacts. Further, the research report recomends social networking as a necessary skills that entrepreneurs needs to embrace and through which an entrepreneur actually benefits in terms of Moral support and feedback, increasing efficiency of business operations and linking their business to the global markets in order to reap the benefits of global markets.