Thesis:

Internal factors affecting performance of small and medium enterprises in Thika sub-county

“Small and medium enterprises play a major role in growth of economy global. The SMEs constitute a largest number in each global economic sector (with an average of 90%). As they dominate in the economic sector, they are of a significant in form of source of employment, economic growth and innovation. According to the world trade organization (WTO), SMEs represent largest percentage of business population, employment and developed economy in all world economies Kenya included. However, despite this importance, SMEs have overtime faced challenges in pursuit of growth and posting positive financial performance. Internal factors such as limited training, accessibility to capital and technology adoption remains key areas for concern. The main objective of this study was to evaluate internal factors affecting performance of small and medium enterprises in Thika Sub-County, Kenya. Specifically, the study evaluated how were technology adoption, capital accessibility and entrepreneurs training and how ach affects performance of small and medium enterprises in Thika Sub-County. This study could be beneficial to the SMEs owners, government policy makers and future scholars. The study reviewed key theories shaping the discussion such as the pecking order, resource based and diffusion of innovation and also looked into what past researchers have done in all study variables. The study chose descriptive research design and targeted all 6398 registered SMEs within Kiambu Sub-County with a sample size of 376 calculated using Yamanes Formula. Primary data was collected using questionnaires which were distributed to respondents on a drop and pick basis. Descriptive analysis as well as regression model were undertaken to create data results. The results werepresented using tables and charts with calculated mean and standard deviation for each question. The study resulted revealed a positive relationship between technology adoption, capital accessibility and entrepreneur training and performance of SMES in Thika sub-County as shown by correlation coefficients of 0.658, 0.687 and 0.754. The study recommended that SMEs should prioritize adopting modern technologies to boost efficiency and competitiveness, with support from governments and industry associations through financial aid and training programs to maximize technology use. Access to capital can be improved by offering flexible financial products, credit guarantee schemes, and encouraging SMEs to explore alternative funding sources like venture capital and crowdfunding. Entrepreneurial training, tailored to industry needs and focusing on management, innovation, and risk management, is crucial for helping SME owners remain competitive, with governments and institutions playing a key role in providing these programs and fostering networking opportunities.”