Business Characteristics and Performance of Registered Second -Hand Clothes SMES in Githurai Market, Nairobi City County, Kenya
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Date
2021
Authors
Wanjiru, Njoka Risper
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Performance of businesses especially in second hand clothes has not been thriving as expected. This has been caused by both internal and external factors which are hindering their proper utilization hence causing operations dilemma. This led to the researcher to carry out a study on business characteristics and performance of registered second-hand clothes SME’s in Githurai market in Nairobi City County. In an increasingly competitive business environment, business characteristics have a great contribution in fostering sustainability of second -hand clothes (SHC) locally known as mitumba under the category of small and medium enterprises (SMEs). This study was guided by specific objectives that included; to determine the effect of technology on business performance of second-hand clothes industry, effect of business size on performance of second-hand clothes industry, effect of business strategy on business performance in the second-hand clothes business as well as the effect of management quality on business performance in the second-hand clothes industry in Kenya. The research was guided by theoretical framework where theories such as Lifecycle Theory on the Growth of the Firm, Resource Dependence Theory and Resource- Based View Theory of the firm were used. The study used a descriptive research design that targeted 325 traders selling second hand clothes at Githurai market. Simple Random Sampling Technique enabled to select 180 respondents. Data was gathered by use of questionnaires that were sent to respondents via emails after a pilot study to minimize the close contact which was prohibited by outbreak of cobvid-19. Content validity was used to test the validity of the research instrument and the reliability test was carried out through Cronbach alpha whereby it was found out to be above the minimum threshold of 0.7. Data was analyzed through the help of SPSS version 26. After data analysis, it was found out that there was a positive significant effect of business size on performance with p=.854 which was above the minimum threshold of 0.7. The study also found out that there existed no significant effect of management quality on performance; in relation to business strategy, the study found out that there did not exist any relationship and finally there existed a positive significant relationship between technology and performance. The study recommended that in terms of business size the business owners should comprehensively engage in their current businesses as it showed that there was performance within their state of operations. The study also recommended that in relation to management quality, the business owners should consider acquiring training in order to have new managerial skills to utilize them in their businesses. The study also recommended that there should be application and utilization of different business strategies in order to overcome the experienced stagnation on performance using their current modes and finally the study recommended that based on usability of technology, there should be frequent monitoring of the technology in use so as to be updated and avoid any threat that may be caused by not being keen in their transactions.
Description
Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of Master Degree in Business Administration (Strategic Management) of Kenyatta University ,June, 2021
Keywords
Business Characteristics, Performance, Registered Second -Hand Clothes SMES, Githurai Market, Nairobi City County, Kenya