Capital Investment Decisions and Growth of Small and Medium Enterprises at the Central Business District of Nairobi City County, Kenya
| dc.contributor.author | Gichuru,Grace Wangui | |
| dc.date.accessioned | 2025-03-19T07:29:11Z | |
| dc.date.available | 2025-03-19T07:29:11Z | |
| dc.date.issued | 2024-11 | |
| dc.description | A Thesis Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Science (Finance) of Kenyatta University, November, 2024 Supervisors: 1.Ambrose Ouma Jagongo 2.Fredrick W. S Ndede. | |
| dc.description.abstract | Small and Medium Enterprises (SMEs) play an important role in the economy and they are considered as key drivers of growth and development as envisioned in Vision 2030. They are often described as efficient and prolific job creators, the seeds of big businesses and the fuel of Kenya’s economic prosperity. Despite the significant role SMEs play in the Kenyan economy, the inadequate capital base of most enterprises in Nairobi County, Central Business District (CBD), is daunting and has had a negative impact on their development, limiting their potential to drive the national economy as expected. In addition, SMEs in Nairobi County face challenges in growth metrics such as savings, business sustainability, and market share, with 60% failing within their first three years, contributing to a stagnation in national economic growth. The aim of the study was to examine the effect of capital investment decisions on growth of small and medium enterprises in Nairobi CBD, Kenya. Specifically, the study sought to assess the effect of expansion, replacement, modernization, contingent and diversification investment decisions on growth of SMEs in Nairobi County, CBD, Kenya. The main theories upon which the study was anchored on included; contingency theory, cash flow theory, acceleration theory as well as acceleration theory of investment. The study used a descriptive research design. The study targeted registered Small and Medium Enterprises in Nairobi CBD. There were 1,367 registered Small and Medium Enterprises in Nairobi Central Business District. Yamane Sampling technique was used to determine the finite sample size of 310 SMEs. This study collected primary data using questionnaires. SPSS version 25 was used in analysis. Multiple linear regression model was employed. The study found that expansion decision, replacement decision, modernization decisions, contingency decision, and diversification decisions explained 85.7% variation in SMEs growth. The study found that expansion investment, replacement investment, modernization investment decision and contingent investment decision had significant effect while diversification investment decision had non-significant effect on Growth of SMEs in Nairobi County CBD, Kenya. The study recommended that SMEs should embrace investment decisions. The Kenya Government, the Micro and Small Enterprises Authority of Kenya should consider formulating venture capital exit policies to address the problem of over stay of venture capitalists. The study recommends that the Kenyan government should put in place an all-inclusive regulatory framework that addresses the investment exit problem wrought in venture capital financing in Kenya. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/29814 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Capital Investment Decisions and Growth of Small and Medium Enterprises at the Central Business District of Nairobi City County, Kenya | |
| dc.type | Thesis |