Impact of strategic initiatives on the growth of selected small and micro enterprises in Eldoret city, Uasin Gishu county, Keny a

Abstract

SMEs played a pivotal role in Kenya's economy by contributing significantly to employment, income generation, and economic growth. However, the SMEs were underperforming, as indicated by their 60% failure rate within three years. Many SMEs in Kenya still faced enormous strategic challenges which negatively impacted their performance. Due to the gap in studies examining strategic initiatives and the growth of SMEs in the local context, the study, therefore, examined the impact of strategic initiatives on the growth of selected SMEs in Eldoret City, Uasin Gishu County, Kenya. The study had four-fold objectives: to establish the impact of strategic location on the growth of Selected SMEs; to evaluate the impact of entrepreneurial skills on the growth of Selected SMEs; to determine the impact of product specialization on the growth of Selected SMEs; and to examine the impact of marketing strategy on the growth of Selected SMEs. The study was limited to (classification by the county department of Trade and Industrialization) SMEs established before 2016. The study was underpinned by resource–based view theory and dynamic capability theory. The study employed a descriptive design situated in Eldoret City with a target population of 2815 SMEs who were sampled through a stratified sampling technique. The study sampled 350 SMEs and interviewed the owner/manager/supervisor using a structured questionnaire. The questionnaire was validated through pilot testing, and reliability was assessed through Cronbach's Alpha coefficient. Data were analyzed descriptively and inferentially through regression analysis, and output was presented in graphical and tabular formats. The findings established that businesses that operate in safe environments are more likely to attract clientele and foster a positive community image, thereby enhancing their marketability. Remarkably, the mean score for the availability of operational and packing space was slightly lower at .59 (SD = 1.302). The findings also indicated that increased specialization efficiency can lead to lower competitive prices for products, as evidenced by a mean score of 3.67 and a standard deviation of 1.249. Also, the study established that for every one-unit increase in strategic location, growth increases by 0.444 units, additionally, it was found that marketing strategy (0.402) and product specialization (0.396) positively impacted o growth.