Kiprono, Michael Kirui2024-09-102024-09-102024-07https://ir-library.ku.ac.ke/handle/123456789/28747A Research Project Submitted to the Department of Economic Theory in the School of Business, Economics, And Tourism in Part Fulfillment of the Requirements for the Award of the Degree of Master of Economics (Policy And Management) From Kenyatta University. July, 2024 Supervisor Gladys RonoMicro and small enterprises around the world play an important role in spurring economic growth. In Kenya, the government introduced numerous policy approaches that targeted the development and promotion of Micro and Small Enterprises, most notably the Micro and Small Enterprises Act of 2012, which established the Micro and Small Enterprises Authority and introduced the Kenya Industrial Estate. Despite the efforts by mandated organizations and the government, studies indicate that 70 percent of Micro and Small Enterprises fail within three years, rendering their survival in the market space low. This was despite the efforts put in by the government of Kenya and other stakeholders to promote Micro and Small Enterprises in the country. Micro and Small Enterprises faced many challenges, including inadequate funding, low skill levels, infrastructure, political instability, and operating expenses. Technology and innovations were directly proportional to improvements in micro and small enterprises. Therefore, the study focused on adopted technology that businesses have employed, including the various technological tools, systems, and innovations that these enterprises have integrated into their operations to improve efficiency, productivity, and overall performance. The study was conducted in the Nairobi's City County. Various studies have been done on technology. However, these studies focused on market entry and technology adoption, with limited attention to the effect of technology on MSE performance. This study aimed to fill this gap by examining the effect of adopted technology use on the performance of MSEs in Nairobi City County. The study sought to ascertain the effect of marketing innovation, process and service innovation, product distribution innovation, and payment technology on the performance of micro and small businesses in Nairobi's Central Business District. The study's empirical model was based on the Cobb-Douglas production function. 270 Micro and Small Enterprises were selected from a target population of 752 in Nairobi's Central Business District, and the entrepreneurs were given a self-administered questionnaire. The questionnaire's reliability was established using Cronbach's alpha, which was 0.72. The collected data was analyzed, and diagnostic tests were performed to assess heteroskedasticity, multicollinearity, and normality. Some moderator variables, such as business management skills, gender, education, and number of years in operation were included in the model. Data analysis results revealed that marketing technology, process and service innovation, distribution technology, and payment methods innovation had a positive influence on the performance of Micro and Small Enterprises in Nairobi City County. Therefore, Policymakers were encouraged to push Micro and Small Enterprises to adopt technology-enabled marketing strategies. Providing incentives, training programs, and resources to help them establish and maintain an online presence.enThesis