Factors Affecting the Growth of Indigenous Firms in Murang'a County, Kenya.
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Date
2013-08-28
Authors
Njoroge, Jane Njeri
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Abstract
The establishment of indigenous firms in anyone country is crucial because they in a
way contribute to the growth of a country's economy. The study surveyed the growth
of indigenous firms in Murang'a County in both public and private sector. The
objectives of the study were to assess how the adoption of product and market
development strategies have influenced the growth of indigenous firms in Murang'a
County, to assess the influence of management future planning and goal setting had
influenced the performance of firms in Murang' a County and to assess how
management perception of macroeconomic conditions had influenced the
performance of firms in Murang'a County. The intervening variables included
politics, policies, technology, firm age, firm size and finance. The study will be
significant-to the indigenous firms that do not fully consider the factors under study to
help them bridge the gap from where they are and where they want to go. The census
survey collected data through questionnaires which were directly administered by the
researcher. The target respondents included the directors, managers and the
employees of the indigenous firms because they are the people on the ground. A
descriptive survey method was to help create a general picture on the ground of the
growth process of indigenous firms across the country. The targeted firms were
stratified into seven categories namely: Tea factories, coffee milling, and macadamia
processing firm, service industry, wholesalers, quarrying and traditional firms. The
sample size was 193 firms. The target population was 3 directors, 193 managers and
424 employees. The quantitative data was analyzed after being coded and entered in
the computer for analysis using the statistical pack_e for social sciences (SPSS). The
Data was presented using tables, charts and histograms. The study drew conclusion
from the factors that affect the growth of indigenous firms. These factors include the
adoption of product/market strategy management future planning, goal setting and
management perception of macro-economic conditions. The study provided
recommendations for improving continued growth of indigenous firms most
importantly involving every-one in the planning process and goal setting.