Project Management Considerations and Performance of Small and Medium-Sized Enterprises in Nairobi City County, Kenya
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Date
2022-11
Authors
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Publisher
Kenyatta University
Abstract
The Small and Medium-Sized enterprises (SMEs) play an integral role in fostering welfare growth and development of economies globally. In Kenya, SMEs constitute about. 98 percent of all businesses, create about 30 percent of all jobs annually, and contribute about 3 percent of the Gross Domestic Product (GDP). Despite this vital role, SMEs performance is still below the optimum levels as it is constantly curtailed by notable challenges such as credit access constraints, stiff competition from larger firms, regulatory burdens, and more importantly project management challenges. The later proves substantial to SMEs in the wake of internal operational constraints that negatively
impact on their productivity. The study, therefore, sought to evaluate the influence of
project management considerations on SMEs performance in Nairobi City County,
Kenya. More specifically, the study evaluated the influence of project planning, due
diligence, and risk management on SMEs performance. A purposive sampling approach
was employed to collect data from 30 SME firms using a questionnaire. The targeted
population was SMEs who have had projects financed by the Industrial and Commercial
Development Corporation (ICDC). The data was analyzed using both descriptive
statistics-and the probit model regression. analysis guided by the stakeholder, control, and
complexity theories- of project: management: The. findings revealed that the degree of
impact: of a given' project management consideration variable on SMEs performance
varied depending on the expected output measure. Risk measurement was found to be
paramount and significant when we considered increased market share as the SMEs
output performance indicator. In considering the prospects of an SME firm launching a
new product in the market; utmost attention need to be accorded to conducting a proper
budget analysis and staff training as they significantly increased SMEs performance.
Concerning increased product diversity and increased customer base performance
measures, proper risk identification and resource coordination frameworks were found to
be the significant drivers of firm performance. The study, therefore, recommended the
government of Kenya to expand on various funding sources for SMEs. This will not only
enable the sustainability of the SMEs in the long run but also increase their profit
potential. Besides, there is need by SMEs to conduct regular and continuous proper risk
measurement and identification frameworks prior to the project implementation process
since risks are part and parcel of any business prospect. Further, SME firms need to
provide training programs to their employees to enhance their skills, knowledge and
technical know-how in the project management process in order to increase their
productivity.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment Of The Requirements for the Award of Degree of Masters of Business Administration (Project Management), Kenyatta
University
supervisor
1. David Nzuki