ANTECEDENTS OF EFFECTIVE RIGHTISIZING IN SMALL AND MEDIUM ENTERPRISES IN NAIROBI COUNTY, KENYA

Ruth Mumbi Njeru, Dr. Thomas Mose, Lorna Kerubo Nyamwaro

Abstract


Baseline survey of 2019 defines SMEs as those non Primary enterprises (excluding agricultural production, animal husbandry, fishing, hunting, gathering and forestry), whether in the formal or informal sector which employ 1-50 people. Micro enterprises are those that employ 10 or fewer workers, while small scale enterprises are those that employ 11-50 workers. the Small-Scale Enterprises are often faced with diverse challenges that prevent their growth and optimum performance. These challenges are in diverse areas including access to information, access to credit facilities and finances, poor skills matrix, lack of skills required to cope with market demands and market linkages, and lack of access to business development services that are critical for their competitiveness as well as productivity. This study sought to establish factors impacting effectiveness of rightsizing in small and medium enterprises in Nairobi County. Specifically, the study sought to examine the role of workload on effective rightsizing in small and medium enterprises in Nairobi County and to determine the effect of information technology on effective rightsizing in small and medium enterprises in Nairobi County. The study used a descriptive survey research design. The target population in this study was 128 managers/owners of registered SMEs in Nairobi County. This study was a census of 128 managers/owners of SMEs in Nairobi County. The study collected primary data using semi-structured questionnaires. Collected data was analyzed using both quantitative and qualitative techniques. SPSS (version 22) was applied in analysing quantitative data where descriptive statistics was computed and presentations done in percentages, means, SD and frequencies. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. The study results were presented through use of tables and figures. The study concludes that workload has a positive and significant effect on effective rightsizing in small and medium enterprises in Nairobi County. Further, the study concludes that information technology has a positive and significant effect on effective rightsizing in small and medium enterprises in Nairobi County. From the results, the study recommends that the management/owners of SMEs in Nairobi County should ensure employees have positive attitude towards work and also ensure recruitment of competent employees.

 

Key Words: Antecedents of Effective Rightsizing, workload, information technology, effective rightsizing in small and medium enterprises in Nairobi County


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