EFFECTS OF EDUCATION ON THE PERFORMANCE OF SMALL ENTERPRISES IN KENYA: A CASE STUDY OF GIKOMBA MARKET, NAIROBI.
DOI:
https://doi.org/10.47604/ijfa.317Keywords:
SMEsAbstract
Purpose: The key objective of this research was to establish the relationship, if any, between education/training and the performance of small enterprises in Gikomba market.
Methodology:This study adopted descriptive and regression analysis design and the target population for this study are the owners/managers of small business enterprises in Gikomba market, Nairobi. A sample of 68 respondents will be selected. Probability sampling was used whereby stratified random sampling will be grouped into two or more relevant strata. This study used both primary and secondary data collected using questionnaires and secondary data collection data guide. Primary data was collected for all variables for a period of 3 years (2010 to 2012). Data analysis was used using both descriptive and inferential statistical methods. Descriptive statistics will include; frequencies, mean and standard deviation. Data analysis output was presented using graphs and tables. Inferential statistics will include regression and ANOVA tests.
Results:The results indicate that Education greatly influences the financial and non-financial factors in the SMEs sector. However the level of education is not the key factor to SME's existence and success. If the business management training education is well implemented, all the small enterprise traders at Gikomba open air market should be in position to breakeven and also to manage their business performance as expected.
Policy recommendation: The study recommends that policy makers should adopt the findings of this study. According to the results, exchange rates, public debt and interest rates were the significant determinant of market capitalisation of listed companies in Kenya during the study period. Macroeconomic variables should be factored when formulating policies on market capitalisation. This study recommended that, since the Kenyan stock market is not really exposed to the negative effects of currency volatility, government can use exchange rate as a policy tool to attract foreign portfolio investment.
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