Growth Strategies and Performance of Bamboo-Related Micro Enterprises in Vihiga County, Kenya
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Date
2024-07
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Kenyatta University
Abstract
Micro Enterprises have provided a viable alternative to formal employment, absorbing a majority of the unemployed persons in the country therefore, playing a major economic role with regards to wealth creation. Growth is a desirable feat for any enterprise as it enhances the value of the firm. An industry wide experience of growth positively impacts to a nation’s income. This research work sought to establish the performance outcome when bamboo-related micro enterprises in Vihiga County employ growth strategies. Focus was on product development, market penetration, market development and diversification growth strategies. The influence of each strategy on the micro enterprise’s performance was thereafter established. The research process was presided over by the resource-based view theory, theory of competitive advantage and industrial organization theory. A total of 65 micro enterprises formed the target population from which 65 owners and managers were involved in the process of data collection. The small population compelled use of a census in the collection of data with a questionnaire as the primary instrument of data collection. The questionnaire type was self-administered containing open ended and closed ended questions. The questionnaire was checked for internal consistency to determine its reliability by using the Cronbach’s Alpha statistic. The data was tested for face and content validity by subjecting the questionnaire to expert evaluation from seasoned senior lecturers at the School of Business. Descriptive statistics were used for the analysis of data through the use of an SPSS tool utilizing, frequency, percentage distributions and measures of central tendency. An analysis of variance (ANOVA) and a multiple regression model were constructed to provide a relation between the dependent and independent variables. It was established that there exists a strong interrelationship among market penetration strategies, product development strategies, market development strategies, and diversification strategies, and the performance of bamboo-related micro enterprises. These predictor variables accounted for seventy two percent of the total variance in performance of bamboo-related enterprises, with each having a positive predictor value. The findings show that the we can use the aforementioned to predict the performance of bamboo-related micro enterprises in Vihiga County. Ultimately, the research work concluded that the application of these strategies had a significant and positive relationship with the micro enterprises' performance. As a recommendation, both the public and private sectors need to equip bamboo-related micro enterprises with adequate skills to make them profitable and competitive in the market. There should also be training on how they can penetrate new markets and develop strategies that can spearhead growth beyond their current coverage. There is also need to aid these small investors in broadening their offerings while remaining competitive. A suggestion for further research was put forward to identify other unique strategies applied by bamboo-
related micro enterprises and challenges in implementing them.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fullfilment of the Requirements for the Award of the Degree in Master of Business Administration (Entrepreneurship) of Kenyatta University, July 2024.
Supervisor
Joyce Gakobo