THE INFLUENCE OF BUSINESS STRATEGIES ON THE

PERFOMANCE OF SMALL AND MEDIUM ENTERPRISES IN

NAIROBI COUNTY, KENYA

BY:

RICHARD KROP

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT

OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE

OF MASTER OF BUSINESS ADMINISTRATION (MBA) SCHOOL

OF BUSINESS, UNIVERSITY OF NAIROBI

OCTOBER, 2014
 DECLARATION

This research project is my original work and has not been submitted for examinations or

award of degree in any other university.

Signature………………………………………………Date…………………………

Richard Krop D61/68863/2011

This research project has been submitted to the University of Nairobi for examination

with my approval as the Supervisor.

Signature………………………………………………Date…………………………

Dr. Justus M. Munyoki

Senior Lecturer

Department of Business Management

School of Business

University of Nairobi

ii
 ACKNOWLEDGEMENT

My sincere gratitude to Dr. Justus M. Munyoki who was my project supervisor for his

guidance and patience towards completion of this project.

I would also like to thank all the SMEs that I sampled as part of this project for their

cooperation and willingness to provide truthful information without which this study

would not have succeeded.

To all my classmates for their cooperation during group assignments and classes, thank

you very much.

To all my lecturers, thank you for your guidance.

iii
 DEDICATION

I would like to dedicate this project to my wife, Julia and my children, Yatich and

Chepkemoi for their patience and understanding as I pursued my MBA.

iv
 ABSTRACT

This study had set out to establish the influence of business strategies on the performance
of Small Medium Enterprises (SME’s) in Nairobi City County. The study had also set out
to determine the business strategies adopted by small and Medium Enterprises in Nairobi
County. The study was guided by the following research objectives: to determine the
business strategies adopted by SMEs in Nairobi County and to establish the influence of
those business strategies on their performance. The study targeted 461 SMEs operating in
Nairobi County which are licensed by the County Government. The study targeted
owners, managers and /or owner/managers operating SMEs within the Nairobi County.
The study adopted descriptive research design in collecting data from respondents. The
study employed a simple random sampling methodology to select a sample representative
of the total population. The main tool for collecting data was questionnaire (Primary
source). The questionnaires were personally administered by the researcher to allow for
further probing on issues that may not have been clear to the respondents. The data was
analyzed using descriptive and regression statistics with the aid of SPSS 21.0. Regression
model was used to establish the influence of business strategies (Human Resource,
Finance, Information Communication Technology and Competitive strategies) on the
performance of SMEs. The study found out that it is indeed true that the various business
strategies influence the performance of SME’s operating within Nairobi County. The
study affirmed that those SMEs that have implemented business strategies have improved
their performance.

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 TABLE OF CONTENTS

Declaration.……………………………………………………………………………………..ii

Acknowledgement.……………………………………………………………………………..iii

Dedication……………………………………………………………………………………...iv

Abstract.....……………………………………………………………………………………...v

List of Abbreviations………………………………………………...........................................x

CHAPTER ONE: INTRODUCTION……………………………………. .... …………………….1

1.1 Background of the study……...………………………………………………………..1

1.1.1 Concept of Strategy.........…………………………………………………………….1

1.1.2 Business Strategies.........……………………………………………………………..2

1.1.3 Organizational Performance……..……………………………………………………3

1.1.4 SME’s in Kenya……..………………………………………………………………..4

1.1.5 SME’s in Nairobi County…….……………………………………………………..6

1.2 Research Problem.…………………………………………………………………..... …….6

1.3 Research objectives... ……………………………………………………………………….9

1.4 Value of the Study .. ………………………………………………………………………..9

CHAPTER TWO: LITERATURE REVIEW ... ………………………………………………….11

2.1 Introduction……………………………………………………………………………11

2.2 Theoretical Foundation…………………………………………………………..........11

vi
 2.2.1 Industrial Organization Economics (IOE)…………………………………………..12

2.2.2 Theory of Competitive Advantage………………………………………………….12

2.2.3 Resource-Based View (RBV)……………………………………………………….13

2.3 Empirical Literature Review…………………………………………………………..14

2.4 Organization

Performance……………………………………………………………………………….17

2.5 Business Strategies..…………………………………………………………………..18

2.5.1 Human Resource Strategies…………………………………………………………18

2.5.2 Financial Strategies..………………………………………………………………..19

2.5.3 Information Technology Strategies…………………………………………………20

2.5.4 Competitive Strategies………………………………………………………………21

2.6 Summary………………………………………………………………………………22

CHAPTER THREE: RESEARCH METHODOLOGY .. ………………………………………..23

3.1 Introduction……………………………………………………………………………23

3.2 Research Design……………………………………………………………………….23

3.3 Target Population..…………………………………………………………………….23

3.4 Sampling Design………………………………………………………………………23

3.5 Data Collection………………………………………………………………………..24

3.6 Data Analysis………………………………………………………………………….25

vii
CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION…….………………….26

4.1 Introduction…………………………………………...........................................................26

4.2 Demographic

Characteristics…………………………………………………………………………………..26

4.3 Business Strategies Adopted by SMEs…………………………………………………….28

4.3.1 Perfomance of Small and Mediem Enterprises……………………………………….30

4.3.2 Influence of Business Strategies on the Perfomance of SME's..………………………31

4.3.3 Influence of Financial Strategies………………………………………………………32

4.3.4 Influence of Information Technology Strategies on the Performance of SMEs………33

4.3.5 Influence of Competitive Strategies on the Performance of SMEs...………………….34

4.3.6 Regresion Analysis…………………………………………………………………….35

4.4 Presentation of Findings……………………………………………………………………39

4.5 Discussions…………………………………………………………………………………40

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS………..43

5.1 Introduction………………………………………………………………………………..43

5.2 Summary of the Study……………………………………………………………..............43

5.3 Conclusion…………………………………………………………………………….........45

5.4 Limitations………………………………………………………………………………….47

5.5 Recommendations…………………………………………………………………….........48

viii
5.6 Suggestions for Further Studies……………………………………………………………49

REFERENCES…. ... ……………………………………………………………………………..51

APPENDICES…………………………………………………………………………………58

Appendix I: Letter of Introduction……………………………………………………………..58

Appendix II: Questionnaire…………………………………………………………………….59

Appendix III: A Sample List of SME's in Nairobi County…………………………………….63

ix
 ABBREVIATIONS

ANOVA – Analysis of Variance

CBD - Central Business District

CS – Competitive Strategies

FS – Financial Strategies

GDP – Gross Domestic Product

GoK – Government of Kenya

HRM- Human Resource Management

HRS – Human Resource Strategies

ICT – Information Communication Technology

IOE – Industrial Organization Economy

RBV – Resource Based View

R&D – Research and Development

SD – Standard Deviation

SME’s – Small Medium Enterprises

TS – Technological Strategies

x
 LIST OF TABLES

Table 4.1 Demographic Characteristics………………………………………………………….28

Table 4.2 Business Strategies Implementation…………………………………………………..29

Table 4.3 Influence of Business Strategies………………………………………………………30

Table 4.4 Indicators of Performance..…………………………………………………………...31

Table 4.5 Influence of Human Resource Strategy………………………………………………32

Table 4.6 Influence of Financial Strategies……………………………………………………...33

Table 4.7 Influence of Information Technology Strategies……………………………………...34

Table 4.8 Competitive Strategies………………………………………………………………...35

Table 4.9 Model Summary………………………………………………………………………36

Table 4.10 ANOVA Results…………………………………………………………………….37

Table 4.11 Coefficients………………………………………………………………………….39

xi
 CHAPTER ONE

INTRODUCTION

1.1 Background of the study

In Kenya SMEs operate in all sectors of the economy, that is, manufacturing, trade and

service subsectors. The SMEs range from those unregistered, known as Jua Kali

enterprises, to those formally registered small-scale businesses, such as supermarkets,

wholesale shops and transport companies. In today’s competitive and dynamic

environment, Small and Medium Enterprises (SMEs) need to develop, manage and

monitor their businesses effectively to enhance their market performance. This requires

the formulation and implementation of effective business strategies to produce a great

performance (Brenes, Mena & Molina, 2007). Business strategies are viewed as enablers

of organization growth as it streamlines internal operations and stimulate access to

business opportunities and markets; enhance business-related efficiencies, increase

productivity and profitability (Horvits, 2005). However, some SMEs focus on the basic,

routine and non essential tasks; while service delivery is poor and not focused (Horvits,

2005).

1.1.1 Concept of Strategy

Strategy is described as a deliberate set of actions to achieve competitive advantage,

giving coherence and direction to the organization. Strategy refers to all decisions related

to business objectives and the courses of actions to achieve them (Drucker, 1973).

Strategy consists of planning decisions which clarify and determine vision, mission, and

1
objectives, defining policies and basic plans for achieving those goals, defining the scope

of the company’s activities and specifying the kinds of economic and human type of the

organization. Strategy, according to Brian (1968), is the pattern or plan that integrates an

organization’s goals and objectives with policies, programs, and action sequences into a

cohesive whole. Strategy gives the direction that firms aspire to take and in which way

they want to achieve their goals.

In their study, Henderson and Venkatraman (1990) classify strategies into three broad

categories: corporate strategy (concerned with interrelationship among businesses);

business strategy (focusing on deploying a strategy at a unit or product level that

maximizes the organization unit or product’s comparative advantage to best compete in

the marketplace) and functional strategy (reflecting efficient allocation of resources

allocated to the particular firms).

1.1.2 Business Strategies

A business strategy is an overall plan of action which defines the competitive position of

a firm. It clearly articulates the direction a business will pursue and the steps it will take

to achieve its goals. In fact it results from the goals established to support the stated

mission of the business. Business strategies are undertaken with the goal of improving

service delivery, increasing efficiency, expanding service and channel offering and

meeting the demands of citizens for quality services in a manner that is consistent with

their range of financial, environmental, and social concerns. As organizations transform

their delivery channels and working practices to satisfy greater customer demands and

2
cost-efficiency, many deploy business strategies to meet these specific goals and general

organizational objectives (Li, Guohui & Eppler, 2008).

Business strategies are implemented through the major functional areas in finance,

production, marketing, human resource management (HRM), and research and

development (R&D). In turn each functional strategy is made up of several activities.

Therefore, activities act as guides to the realization of the overall business strategy

(Mintzberg & Quinn, 1992). The effectiveness of the overall business strategy depends

substantially on how well activities in the various functional areas are integrated to form

a pattern.

1.1.3 Organizational performance

Performance is the competency of an organization to transform the resources within the

firm in an efficient and effective manner to achieve organizational goals (Daft, 1997).

Organizational goals vary depending on the purpose for which they are established. Many

studies emphasized traditional accounting measures for performance such as sales

growth, market share, and profitability as well as with other indicators of stakeholder

satisfaction. Most of research considered the performance in the small firms based on

financial measures alone (Bracker, Keats & Pearson, 1988). The performance is

measured in terms of various financial measurements based on sales revenue, profits,

return on investment/ equity (Wijewardena, Zoysa , Fonseka & Perera, 2004). The

applied financial performance measures are sales level, sales growth rate, cash flow,

return on shareholder equity, gross profit margin, net profit from operations, profit to

sales ratio, return on investment, and ability to fund business growth from profits (Covin,

3
1991). Later, in addressing the limitations associated with the use of financial data in

measuring performance in small firms, non financial measures of performance were used

(Gibson & Cassar 2005).

In recognizing the problem of using financial measurements alone, Yusuf and Saffu

(2005) recommended that performance should be measured with both financial and non-

financial criteria. Pushpakumari and Wijewickrama (2008) used both financial and non-

financial measures such as annual sales, annual profits, number of employees, market

share and reinvestment in the business to measure the business performance. Gibson and

Cassar (2005) used both financial indicators (sales and income measures) and non

financial indicators (number of employees). Further, a range of other operational

measures have also been used. They include new product success, market share, and the

firm’s life cycle. Blackman (2003) used this similar approach including variables as high

productivity, industry leadership, creating new jobs, business stability, high profit rates,

and lower cost of production, community development and business growth.

1.1.4 SMEs in Kenya

An enterprise is considered to be any organized effort intended to return a profit or

economic outcome through the provision of services or products to an outside group

(Carland, Hoy, Boulton & Carland, 1983). The operation of an enterprise traditionally

requires the investment of capital and time in creating, expanding or improving the

operations of a business (Meredith, 2001). Small to medium enterprises are considered

those enterprises which have fewer than 250 employees. In distinguishing between small

and medium size enterprises, the small enterprise is defined as an enterprise which has

4
fewer than 50 employees. These businesses are often referred to as SMEs and are

associated with owner proprietors (Meredith 2001; Schaper & Volery 2004).

Mutula and Brakel (2006) argue that there is no universally accepted definition for small

and medium enterprises (SMEs), the description of Small and Medium Enterprises

(SMEs) varies from country to country. Most of the time the choice whether or not a

company is an SME is based on the number of employees, value of assets or value of

sales. In Kenya SMEs are described as any non-farm enterprise, formal or informal, with

less than 50 employees, including sole proprietorships, part-time businesses, and home-

based businesses (GoK, 2012).

As alluded to earlier in this chapter, In Kenya, SMEs operate in all sectors of the

economy, including manufacturing, trade and service subsectors. Almost two-thirds of all

SMEs in Kenya are located in the rural areas with only one-third found in the urban

areas. The sector is perceived as the engine of growth as it is key in the generation of

employment & income, provision of goods & services & as a driver of competition,

industrialization and innovation. It comprises of about 75 % of all businesses, employs

4.6 million people (30%) and accounts for 87% of all new jobs and contributes 18.4 % of

the GDP (GoK, 2009)

Despite the opportunities presented by globalization, the results have been unsatisfactory

for SMEs in terms of their growth. This is evidenced by baseline survey; undertaken by

Central Bureau of Statistics (2004) which indicated that there is high rate of failure and

stagnation among many SMEs. The survey reveals that only 38% of the SMEs are

5
expanding while 58% have stagnated and that more micro and small enterprises are most

likely to close in their first three years of operation. This is confirmed by the recent study

conducted by the Institute of Development Studies University of Nairobi on behalf of

Ministry of Planning (2008) which used a sample of businesses operating in Central

Kenya. The study revealed that 57% of small businesses are in stagnation with only 33%

of them showing some level of growth. Although management and owners of SMEs

develop new ideas and solutions, they rarely utilize a formalized logistical strategy, along

with overall business objectives which can contribute to the success and the survival

management of the enterprise. They therefore face critical constraints that inhibit their

growth, competitiveness and performance (GoK 2008).

1.1.5 SMEs in Nairobi County

The national baseline survey (National Baseline Survey, 1999) indicated that about 17%

of the total SMEs are located in Nairobi. According to the licensing record provided by

Nairobi county licensing office (2014) there were 825 SMEs based in Nairobi County

operating in service and manufacturing sectors. The contribution of SMEs to job creation

in the country is regarded as immense. Analysis by county shows that Nairobi County

recorded a 5.4 increase in job creation in 2011 in the SMEs sector (Republic of Kenya,

2012). Like in any other part of the country SMEs in Nairobi have high mortality rates

with most of them not surviving to see beyond their third anniversaries (RoK, 2005),

1.2 Research Problem

According to Covin, (1991), there is a relationship between strategy and performance,

while Chell, Haworth and Brearley, (1991) acknowledged that strategies which result in

6
high performance are identified with activities that include emphasis on product quality,

product and service innovations that meet changing customer needs are associated with

market share increase arising from attracting new customers and retaining existing ones.

Activities associated with high performing strategies also include emphasis on use of

technologies, discovery of new markets, excellent customer service and support,

extensive advertising, use of external finance, emphasizing cost effectiveness and

concern with employee productivity (Vickery, Droge & Markeland, 1993)

SMEs struggle to operate, manage and improve their businesses efficiently in order to

deliver quality products and services consistently and on time. This is because in most

enterprises the application of business strategies requires a host of expensive and time

consuming changes both in the organizational culture and structure hence many owner /

managers have had to overlook some necessary and critical business strategies. This has

had a devastating negative effect on their performance as it has resulted in poor service

delivery, increased internal inefficiencies and negative bottom line; and most importantly

reduced contribution to the gross domestic product (GDP), creation of job opportunities

and also the overall individual organization performance.

Robinson & Pearce (1984) in their study on strategy development and implementation

established that small firms do not commonly follow business strategies and that strategic

issues are the domain of large firms and that formal strategic planning has not been a

popular practice among small firms because they have neither the time nor staff to invest

in strategic business development and implementation. Okwachi Samuel, Gakure

Roselyn, and Ragui Mary (2013) focused on relationships between managerial practices

and strategy implementation. The study results indicate that managerial practices affect

7
implementation of strategic plans in Kenyan SMEs. Omanga C. Mochoge (2011)

investigated the determinants of strategic information system on the performance of

Kenyan SMEs. The findings established that SME successful implementation of IS affect

performance. A study by Bowen, Morara and Mureithi (2009) sought to understand

how SMEs manage the challenges they face. The findings indicate that SMEs face the

following challenges; competition, lack of access to credit, cheap imports, insecurity and

debt collection. The SMEs have the following strategies to overcome the challenges; fair

pricing, discounts and special offers, offering a variety of services and products, superior

customer service and continuously improving quality of service delivery. The research

concludes that business success is a consequence of embracing a mix of strategies.

Ngugi, Gakure, Were and Kibiru (2012) examined the influence of intellectual capital

and growth of small and medium enterprise in Kenya. The study established that

management’s technical skills influenced the growth of small and medium enterprise,

mostly followed by managerial experience, and risk taking propensity among all the

entrepreneurial skills factors.

Hence there is limited information on the influence of business strategies focused on the

SMEs in Kenya. Thus this study sought to examine the influence of businesses strategies

on the performance of Small and Medium Enterprises in Nairobi County. The study

attempted to answer the following research question: how do business strategies

influence the performance of Small and Medium Enterprises in Nairobi County.

1.3 Research objectives

8
The study had the following objectives:

i) To determine the business strategies adopted by small and Medium Enterprises in

Nairobi County

ii) To establish the influence of businesses strategies on the performance of Small

and Medium Enterprises in Nairobi County

1.4 Value of the Study

The study is significant to SMEs as they will be able to understand and appreciate the

challenges that influence the implementation of business strategies in these organizations

and be able to take remedial action to alleviate these challenges and ensure effective

implementation of business strategies. The results of the study are also significant to

other organizations as the finding will be used to understand and appreciate the

challenges influencing the implementation of business strategies in other business sectors

and thereby facilitate the sector players to seek solutions that enhance the implementation

of the business strategies in an effective manner in order to achieve growth and operation

efficiency

The results of the study is also significant to the Government as the finding will be used

as a basis of identifying the challenges influencing the implementation of business

strategies in the various public sector firms and facilitate effective solutions through

regulations and policies that will enhance the implementation of business strategies so as

to improve the contribution of SMEs to the general economy

9
Other academic researchers in this field will also utilize the results of this study as part of

secondary data in enhancing future studies. The study will facilitate individual

Researchers to identify gaps in the current research and carry out research in those areas.

10
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

In this chapter, literature, related to and consistent with the objectives of the study, is

reviewed. Theoretical foundation is discussed and involved discussion of Industrial

Organization Economics (IOE) theory, Theory of Competitive Advantage and Resource-

Based View (RBV). Empirical literature review was carried out; review of past literature

pertaining to business strategies and performance of Small and Medium Enterprises was

discussed.

2.2 Theoretical Foundation

This section provides a theoretical basis for the study by considering three theories, the

theory of competitive advantage, which argued that the firm’s profitability is merely a

function of industry or market structure within which the firms operate. The theory of

competitive advantage whose main thought is that internal competencies are the basis for

a firm to be a strong competitor in the market meaning that when a firm uses its internal

unique resources and capabilities it is better placed to outperform its rivals. The resource

based View which assumes that firms can be conceptualized as bundles of resources and

capabilities that cannot be bought or sold in markets making them valuable, rare,

inimitable and non-substitutable. According to this theory an organization’s resource

comprise of finance, human resources, technology and marketing as organizational

11
resources. The review of these three theories assisted in setting the direction of the

research.

2.2.1 Industrial Organization Economics (IOE)

The IOE through its structure-conduct-performance paradigm argues that a firm’s

performance is contingent upon the conduct of the market agents (buyers and sellers),

which in turn dependent on the structure (number, size etc.) of the market (Porter, 1980).

This theory perceives that firm’s profitability is merely a function of industry or market

structure within which the firms operate. This model is, however, more suitable for a

market condition with simple group structures, high concentrations, and rather

homogeneous firms (Seth and Thomas, 1994); and much less applicable to explain large

variations of firm performance in a single industry (Parnell, 2011).

2.2.2 Theory of Competitive Advantage

Porter (1980) distinguishes competitive strategies into cost leadership, differentiation and

market niche as the sources of competitive advantages. The greater focus on firm-level

analysis in the later period has given birth to the RBV. This approach emphasizes an

inside-out business strategy, in which a firm using its internal unique resources and

capabilities is better able to outperform its rivals (Barney, 1991). Corbett and

Wassenhove (1993) strongly believe that internal competencies are the basis for a firm to

be a strong competitor in the market.

Porter’s (1980) generic strategies in the form of cost leadership, differentiation and

market focus may be useful, but inadequate for SMEs to stay competitive. A firm, which

has competencies in many functional areas, would be better able to remain competitive in

12
the market. It is advisable that mixed strategies, such as cost reduction, innovation and

quality enhancement to be adopted simultaneously to gain competitive advantage,

regardless of industry. A firm gains competitive advantage by performing these

strategically important activities more cheaply or better than its competitors (Jonsson &

Devonish, 2009).

2.2.3 Resource-Based View

Resource Based View (RBV) assumes that firms can be conceptualized as bundles of

resources and capabilities. The resources and capabilities with which firms compete

cannot be bought or sold in markets hence they are: valuable, rare, inimitable and non-

substitutable. Capabilities must be developed rather than being taken as given resources

must satisfy the user need. Business processes / activities could utilize (for their

execution): people (characterized by their knowledge, experience, skills and talents);

machines, devices and tools (characterized by their technical characteristics and

constraints); methodologies, tools and models installed in the organization, and/or various

types of tangible assets (buildings, real estate,) and intangible assets (like patents, brand

names) (Barney, 1991).

Resource-Based View regard finance, human resources, technology and marketing as

organizational resources (Barney, 1991). Porter (1985) regards marketing with special

reference to differentiation as competitive strategies of a firm. An effective marketing

needs a specialized skill, which allows entrepreneurs to communicate and inform

potential customers about their products or services. The RBV argues that the HRM

practices have a positive relationship with firm performance (Barney, 1991). In similar

13
argument, a firm may gain competitive advantage if it has greater capability to manage its

human resources (Barney & Wright, 1998). Participation and empowerment, promotion

from within, training and skill development are among notable HRM practices having

great value to an organisation (Pfeffer, 1994).

2.3 Empirical Literature Review

Nader, Mohammad, Ali and Davod (2011) undertook a research aimed at identifying

factors contributing to the failure of strategic decisions implementation in the Iranian

health service sector. Reviewing the literature and using experts' opinion, 16 variables

were identified. Using exploratory and confirmatory factor analysis, variables were

categorized in the form of four factors. The study identified context dimension, content

dimension, operational dimension and structural dimension as effective factors on the

failure of business strategic decisions in Iranian health service sector.

In their study on the public administration and the role of the government, Afonso et al

(2005) focused on the assessment of the efficiency and usefulness of public sector

services. Their findings are in line with other studies which mostly show that public

services should be much smaller and more efficient than they are at present. One of the

proposed solutions is the outsourcing of the non-core activities to the private sector.

These findings are in concordance with overall European policies especially with

European broad- based innovation strategy.

Chimhanzi & Morgan’s (2005) findings indicate that firms devoting attention to the

alignment of human resources are able to realize significantly greater successes in their

strategy implementation. Specifically, these findings imply that marketing managers

14
should seek to improve the relationship with their HR colleagues by emphasizing two of

the process-based dimensions: joint reward systems and written communication. The

relationships between different strategy levels also reflect the effect of relationships

among different cross-organizational levels on strategy implementation

Research work of Mutula and Van Brakel (2006) shows that implementation of business

strategy in public sector organizations are placed at the centre of the process of change in

public administration. But still he notes that innovation in public administration will not

automatically be translated into an improvement in organizational performances.

Okwachi, Gakure and Ragui (2013) focused on relationships between managerial

practices and strategy implementation. To achieve the main objective, a survey of 96

SMEs was conducted from a population frame of 810 SMEs registered by the Nairobi

City Council. Both quantitative and qualitative data were collected. A questionnaire

containing both open-ended and closed questions was used for data collection. The

response rate of 91.67% was achieved. The study results indicate that managerial

practices affect implementation of strategic plans in Kenyan SMEs. Based on the

findings, the study recommended that SMEs should take initiatives to improve their

management practices through lobbying, professional and industry organizations,

adoption of best practices and taking advantage of both government and private sector

initiatives.

Omanga (2011), investigated the determinants of strategic information system on firm

performance of Kenyan SMEs. The study was conducted in SME in Nairobi County.

Structured questionnaires were used to collect primary data. Data was analyzed using

15
descriptive statistics such as frequencies, percentage, means and inferential statistics such

as Pearson correlation and multiple regression models. The findings are of relevance for

SME successful implementation of IS particularly when we consider that Small and

Medium Enterprises (SMEs) in Kenya has been targeted as a mechanism in generating

domestic-led investment to stimulate economic development.

Ngugi, Gakure, Were, Ngugi and Kibiru (2012) examined the influence of intellectual

capital and growth of small and medium enterprise in Kenya. From the findings,

management’s technical skills influenced the growth of small and medium enterprise,

mostly followed by managerial experience. Further, the drive/impetus to entrepreneurship

influenced the growth of small and medium enterprise mostly followed by risk taking

propensity among all the entrepreneurial skills factors.

A study by Bowen, Morara and Mureithi (2009) sought to understand how SMEs

manage the challenges they face. These challenges seem to change (evolve) according to

different macro and micro conditions. This study employed stratified random sampling to

collect data from 198 businesses using interviews and questionnaires. The data was

analysed descriptively and presented through figures, tables and percentages. The

findings indicate that SMEs face the following challenges; competition among

themselves and from large firms, lack of access to credit, cheap imports, insecurity and

debt collection. Credit constraint seems to be easing up when compared to previous

researches. Relevant training or education is positively related to business success. The

SMEs have the following strategies to overcome the challenges; fair pricing, discounts

and special offers, offering a variety of services and products, superior customer service

16
and continuously improving quality of service delivery. The research concludes that

business success is a consequence of embracing a mix of strategies

2.4 Organization Performance

Performance is the competency of an organization to transform the resources within the

firm in an efficient and effective manner to achieve organizational goals. Performance

can be measured using traditional accounting measures such as sales growth, market

share, and profitability as well as with other indicators such as stakeholder satisfaction.

(Gibson & Cassar 2005), The performance is also measured in terms of various financial

measurements based on sales level, sales growth rate, cash flow, return on shareholder

equity, gross profit margin, net profit from operations, profit to sales ratio, return on

investment, and ability to fund business growth from profits (Wijewardena, Zoysa ,

Fonseka & Perera, 2004). Yusuf and Saffu (2005) recommended that performance

should be measured with both financial and non-financial measures such as annual sales,

annual profits, number of employees, market share and reinvestment in the business to

measure the business performance of SMEs).

2.5 Business Strategies

Business strategies are implemented through the major functional areas in finance,

production, marketing, human resource management (HRM), and research and

development (R&D). In turn each functional strategy is made up of several activities.

17
Therefore, activities act as guides to the realization of the overall business strategy

(Mintzberg & Quinn, 1992). Activities which comprise the various functional strategies

centre around the following; finance such as capital structure; methods of raising capital:

capital expenditure: levels of profit distribution and retention: working capital: and

liquidity level. Production which involves selection of suppliers: inventory and

productivity levels: production technology and plant size and capacity as well as levels of

efficiency in production. Staff recruitment and selection, employee training, performance

and remuneration, reward and disciplinary systems, industrial relations and levels of

employee participation in decision making, product quality, pricing and promotion,

customer target groups, choice of distribution channels, provision of customer service

and support, and identification with brand names. The effectiveness of the overall

business strategy depends substantially on how well activities in the various functional

areas are integrated to form a pattern.

2.5.1 Human Resource Strategies

Human resources strategies may include activities aimed at involving employees in

decision making, using clear personnel policies in reward and punishment of employees,

emphasizing employee welfare, assessing employee performance, assessing employee job

satisfaction, and emphasizing employee productivity among others. Profitable

organizations depends on competent employees hence it is important for the organization

to develop human resource competencies. The organization need to attract employees

with necessary experience, technical skills and other soft skills. Putting together a strong

management team with the right skills that works cohesively is one of the first tasks in

strategy implementation. The firm also needs to challenge its employees to innovate and

18
be creative, and motive them to upgrade their skills continuously (Mintzberg & Quinn,

1991).

Hiring and retaining competent employees helps to develop core competencies. However

the organization’s core competency emerges incrementally as the firm goes about

business. The management team’s role is to concentrate enough resources and

management attention on activities that strengthen employees’ core competencies and

motivation. The effectiveness of business strategy is, at least in part, affected by the

quality of people involved in the process. In this case quality refers to skills, attitudes,

capabilities, experiences and other characteristics of people required by a specific task or

position (Peng & Litteljohn, 2001).

2.5.2 Financial Strategies/ Organization Resources

Financial strategies may include determination on the use of outside borrowed funds,

search for cheaper sources of finance, reinvestment of earned profits, maintaining large

cash balances. Financial strategies and the way they are managed are key determinant of

organization performance and this primarily relates to delivery of the best product and

service value within financial limits (Saffu 2005).

Johnson et al. (2006) define three issues that organizations face in terms of the relation

between strategy and finance: Managing for value, whether this is concerned with

creating value for shareholders or ensuring the best use of organization finances

(budgets). Financial strategies also includes: determining what resources (people,

equipment, materials) and what quantities of each should be used to perform organization

activities; developing an approximation (estimate) of the costs of the resources needed to

19
complete the strategy activities; allocating the overall cost estimate to individual work

items; and controlling and management changes to the budget. Finance is necessary for

procurement of services, equipment and facilities necessary for organization operations.

Thus financial strategies ensure that all expenditures are kept within organization budget,

by facilitating resource planning, cost estimation, and cost control. They also facilitate

effective management of: resource costs, labor rates, material rates, risk management,

plant (buildings, machines, etc.), equipment, cost escalation, indirect costs, and profit

which the organization dependents for its operations (Wijewardena, Zoysa , Fonseka &

Perera, 2004).

2.5.3 Information Technology Strategies

Effective utilization of quality business information have been identified as crucial in

attaining long-term and sustainable performance in the SMEs sector. Technology can be

defined as knowledge, products, processes, instruments, procedures and systems which

helps in the production of goods and services. Technology facilitates organizations in

implementing processes, policies, procedures and initiatives. Organizations also utilize

technology to enhance and maintain communication and accountability for all relevant

managers and operational employees throughout the organization, and to keep track of

achievement of performance goals (Heide, Grønhaug & Johannessen, 2002).

IT strategies facilitate the organization in coordinating, enhancing and in monitoring and

evaluation of organization operations. Specifically they enable organizations to

efficiently and cost effectively attract and retain profitable customers, integrate and

coordinate product and service innovations, production processes, marketing, financing

20
and personnel. Technological strategies enhance information sharing within the

organization. There is a relationship between organizational goals and operational targets

of organization and its technological strategy. Effective information technology lay

emphasis on the quality of information; time appropriateness of information; quantity of

information and relevancy of information (Forman & Argenti, 2005).

2.5.4 Competitive Strategies

Porter (2000) defines competitive strategy as a process whereby a firm’s portfolio of

products and services is designed to bring together its unique resources and capabilities to

gain advantage in the marketplace. The myriad activities that go into creating, producing,

selling, and delivering a product or service are the basic units of competitive advantage.

In order to achieve sustainable competitive advantage(s), firms need to adopt a strategic

positioning through the creation of a unique and valuable position, involving a different

set of activities. Several scholars have proposed various competitive strategies for

businesses. These usually span quality, cost leadership (Prajogo, 2007), product

differentiation (Hwang and Lockwood, 2006), ICT adoption (Ongori & Migiro, 2010)

among others

Many firms develop competitive strategies that aim to secure a strong market position

and achieve profitability outcomes. Enz (2008) argued that a single resource cannot

create competitive advantage. Rather, it is the combination of competitive resources such

as brands, human resources (HR), information technology (IT) innovations, computer

reservation systems, niche marketing and advertising, and pricing tactics that can increase

a firm’s capabilities and improve performance. Firms do compete along different

21
dimensions such as designing and developing new products, adopting smart approaches

to manufacturing, implementing quick-to-market distribution, purchasing cutting-edge

communication and developing appropriate marketing strategies (Chathoth & Olsen,

2007).

2.6 Summary

Business strategies play a crucial role in the firms’ performance as performance of an

enterprise is determined by the business strategy it adopts. Business strategies are viewed

as enabler of organization growth as it streamlines internal operations and stimulate

access to business opportunities and markets; enhance business-related efficiencies,

increase productivity and profitability. Business strategies are undertaken with the goal of

improving service delivery, increasing efficiency, expanding service and channel and

meeting the demands of customers for quality services. Business strategies are

implemented through the major functional areas in finance, production, marketing,

human resource management and research and development

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter explains the methodology that was used in the entire study. It covers study

design, target and study population, sampling techniques, research instruments, data

collection, pilot test and data processing and analysis.

22
3.2 Research Design

A research design is defined as the blue print and a detailed plan of how a research study

is to be conducted (Neuman, 2006). The study used descriptive research design in

collecting data from the respondents. The descriptive research design was preferred

because it ensured complete description of the situation, making sure that there was

minimum bias in the collection of data (Kothari, 2003).

3.3 Target Population

The target population consisted of small and medium enterprises located within Nairobi

County as contained in the population frame provided by the Nairobi City Council

Licensing office which contained 825 small and medium enterprises which have acquired

business licenses for 2014.

3.4 Sampling Design

The study used simple random sampling methodology to select a sample that represent

the entire population because the population is homogeneous. Hence the study took 20%

of the target population of 461 of SMEs thereby obtaining a sample of 92 SMEs from

which owner managers were drawn as respondents. This satisfied the law of statistical

regularity, which states that if a sample is chosen at random, on average it will have the

same characteristics and composition as the population (Kothari, 2009). This ensured that

each object had an equal chance of selection and thus avoided biased selection. Owner/

managers were selected as respondents due to the fact that they have access to the

required information and had the appropriate experience to provide relevant information.

3.5 Data Collection

23
Data was collected using questionnaires containing closed ended questions. As a method

of data collection, questionnaires were appropriate because they were easy to administer,

analyze, and cost effective. In order to ensure the reliability and validity of the research

instrument expert views and suggestions of the supervisors were initially incorporated in

the questionnaires. Thereafter the questionnaire were pretested on eight (8) respondents

from the target population who were not be part of the final sample to ascertain the

thinking behind the answers so that the researcher could accurately assess whether the

questionnaire would be filled out properly, whether the questions were actually

understood by respondents, and whether the questions asks what the researchers intents.

As a result of the pilot test, initial changes were made to the identified problems in the

research instrument.

The researcher administered questionnaires to the sample respondents. Each respondent

received the same set of questions in exactly the same way. Prior informed consent was

obtained from each respondent before the questionnaire was given to them.

3.6 Data Analysis

The Data collected was chronologically arranged with respect to the questionnaire items

to ensure that the correct code was entered for the correct variable. Data cleaning was

then done and the data tabulated. The tabulated data was analyzed using descriptive and

regression statistics with the aid of Statistical Package for Social Sciences (SPSS 21.0).

This facilitated the establishment of relationships between independent and dependent

variables and made it easier to understand and interpret the implications of the study. The

study used the following regression model.

24
Y=α + β1X1+ β2X2 + β3X3 + β4X4 + εit Where,

Y= Performance of Small and Medium Enterprises (PSME)

X1= Financial Strategies (FS)

X2= Technology Strategies (TS)

X3= Human Resource Strategies (HRS)

X4=Competitive Strategies (CS)

α = Constant

The data is presented in the next chapter in form of tables, pie-charts and bar graphs only

where it provides successful interpretation of the findings.

CHAPTER FOUR

DATA ANALYSIS, RESULTS AND DISCUSSION

4.1 Introduction

This chapter presents the analysis of study findings on the influence of businesses

strategies on the performance of Small and Medium Enterprises in Nairobi County. It

presents analyses of the variables involved in the study and estimates of the model

presented in the previous of the chapter.

25
Out of the 92 issued questionnaires, 72 questionnaires representing 78.26% of the total

questionnaires distributed were returned fully completed, while 20 questionnaires were

not returned representing 21.74% of the total questionnaires distributed to the

respondents. It can be inferred that the response rate was good. According to Mugenda

and Mugenda (2003) a response rate of 70% and over is excellent for analysis and

reporting on the opinion of the entire population.

4.2 Demographic Characteristics

The researcher sought to know the demographic characteristics of the respondents

relating to the titles, gender, levels of education, line of business and length of existence

of the business. The length of the business was particularly important given that studies

have shown that 57% of SMEs are in stagnation (Ministry of Planning, 2008). The tittles

were also of particular importance to the researcher because we needed to know whether

they are owners or owner / managers.

Table 4.1 Demographic Characteristics

Demographic factors Categories Frequency Percentage

Title Owner 25 34.7

Manager 33 45.8

Owner/Manager 14 19.4

Gender Male 46 63.9

Female 26 36.1

Level of education Primary 1 1.4

Secondary 13 18.1

26
 College 25 34.7

University 14 19.4

Other 19 26.4

Line of business Manufacturing 6 8.3

ICT 3 4.2

Construction 9 12.5

Retail 18 25.0

Wholesale 27 37.5

Energy 9 12.5

Length of existence 1-4 Years 21 29.2

5 – 10 years 14 19.4

10 years and 37 51.4

above

Source, Field Data (2014)

The results shown on table 4.1 above indicate that majority, (45.8%), (63.9%), (34.7%)

(37.5%) and (51.4%) of the respondents indicated respectively that they were managers

who were mostly male, had reached college and were involved in the business for over 10

years. 34.7% were owners while 19.4 were owner/ managers. This totaled to 54.1% being

owners and/ or owner/ managers. This was critical because they were the main focus of

our study.

27
It is also important to note that 54.1% reported to have an education level of college and

above showing that they understood the concept of business strategies and could

therefore respond with a measure of accuracy and from a point of knowledge.

4.3 Businesses Strategies Adopted By SMEs

The study sought to establish the type of business strategy the enterprises had

implemented. The results are shown in Table 4.2

Table 4.2 Business Strategies Implemented

Measurement Frequency Percentage

Financial strategies 12 16.7

Technology Strategies 7 9.7

Human Resource strategies 12 16.7

Competitive Strategies 8 11.1

All of the above strategies 33 45.8

72 100

Source, Field Data (2014)

The results of the study shown on table 4.2 above shows that majority, (52.8%) of the

enterprises have implemented: financial strategies, technology strategies, human resource

strategies and competitive strategies. From the analysis also, it is important to note that 1

higher percentage of 33.4% have implemented both Financial and Human Resource

strategies showing the importance that SMEs place on those two strategies.

28
The researcher sought to establish the effect which the implementation and use of

business strategies has had on the enterprises.

Table 4.3 Influence of Business Strategies

Measurement Frequency Percentage

Positive 68 94.4

Negative 1 1.4

Neutral 3 4.2

72 100

Source, Field Data (2014)

The findings of the study as indicated on table 4.3 above shows that majority (94.4%) of

the respondents, acknowledged that implementation and use of business strategies had a

positive effect on the business, while the least (4.2%) number of the respondents

indicated that the effect of implementation of business strategies was negative. From the

study it can be concluded that business strategies when implemented and used effectively

will have a positive impact on the business.

4.3.1 Performance of Small and Medium Enterprises

The study sought to examine the indicators of performance of the respondents’

enterprises. The results are presented in table 4.4 in the next page.

29
Table 4.4 Indicators of Performance

Indicators N Mean S.D.

Sales growth 72 1.40 .494

Market share 72 1.60 .620

Profitability 72 1.50 .504

Customer satisfaction 72 1.65 .754

Source, Field Data (2014)

As shown on table 4.4 majority (Mean=1.65; SD=.754) of the respondents indicated that

the indicator of performance with greater weight was customer satisfaction, while the

least (Mean=1.40; SD=.494) number of respondents indicated sales growth. This is

premised on the fact that with higher customer satisfaction, sales can grow.

4.3.2 Influence of Businesses Strategies on the Performance of SMEs

The research sought to establish the effect of human resource strategy on the performance

of SMEs. The results are presented in Table 4.5 in the next page.

30
Table 4.5 Influence of Human Resource Strategy

Statements N Mean S.D.

Effective recruitment and selection strategy 72 1.65 .675

Implemented scheme of service 72 1.96 .759

Training and capacity building policy 72 2.32 .059

Regular team building activities 72 2.36 .142

Source, Field Data (2014)

The results on table 4.5 above shows that most (Mean=2.36; SD=.142) of the respondents

agreed that businesses conducting team building activities regularly greatly influence the

performance of SMEs, while the least (Mean=1.65; SD=.675) number of respondents

indicated that greatly influence the performance of SMEs.

4.3.3 Influence of Financial Strategies on the Performance of SMEs

The researcher sought to establish the effect of financial strategies on the business

performance of SMEs. The results are presented in Table 4.6 below.

Tale 4.6 Influence of Financial strategies

N Mean S.D.

Annual budgeting process 72 1.72 .676

Audit system 72 1.85 .850

Risk management policies 72 2.07 .939

Source, Field Data (2014)

31
Result of the analysis on table 4.6 shows that majority (Mean=2.07 and SD= .939) of the

respondents agreed that the enterprise has implemented risk management strategies and

policies that ensures that management of risk exposure so as to maintain optimum risk

return trade off that maximizes shareholders value; while least (Mean = 1.72 and

SD=.676) study respondents agreed that the enterprise has implemented capital

budgeting strategies hence selecting operations and investments based on risk and

expected returns.

4.3.4 Influence Information Technology Strategies on the Performance of SMEs

The study established the influence of information technology strategies on the

respondent’s organization. The results are presented in Table 4.7 below.

Table 4.7 Influence Information Technology Strategies

Statement N Mean S.D.

Adoption and use of information communication 72 1.86 .581

technology

Inventory management system 72 1.64 .564

Data management strategies 72 1.81 .705

Management information systems 72 1.50 .678

Customer relation management systems 72 1.75 .645

Source, Field Data (2014)

32
The result on table 4.7 showed that majority (Mean = 1.86 and SD = 0.581) of the

respondents agreed that the enterprises have adopted and effectively used information

communication technology; while the least (Mean = 1.50 and SD = 0.678) number of the

study respondents agreed that the organization has adopted and used management

information systems

4.3.5 Influence of Competitive Strategies on the Performance of SMEs

The study sought to find out the competitive strategies employed by the SMEs to improve

their organization performance. The results are presented on Table 4.8 below.

Table 4.8 Competitive Strategies

Strategies Mean SD

Unique branding 2.63 .066

Skilled human resource 2.21 .156

Information Communication Technology 2.36 .370

Innovation 2.07 .060

Access to cheap credit 1.98 .087

Others 2.16 .113

Source, Field Data (2014)

33
Results of the study indicated on table 4.8 shows that most (Mean= 2.63 and SD=.066) of

the respondents indicated that their strongest competitive strategy consist of the unique

brands that satisfy customer needs, while the least number (Mean=1.98 and SD= .087) of

study respondents acknowledged that their most important competitive strategy involve

access to credit

4.3.6 Regression Analysis

The study sought to establish if there is a relationship between financial, information

technology, human resource and competitive strategies and performance of small and

medium enterprises. The results are presented in Table 4.9 in the next page.

Table 4.9 Model Summary and ANOVA

Std. Error of the

Model R R Square Adjusted R Square Estimate Df Sig

1 .418a .175 .120 1.155 5 .002

ANOVA

Model Sum of Squares Df Mean Square F Sig.

1 Regression 3.085 5 .017 3.46 .004a

Residual 4.568 66 .069

Total 7.653 71

Dependent Variable: Performance of Small and Medium Enterprises

Source, Field Data (2014)

34
Results of the study shown on table 4.9 indicate a coefficient of determination, (R2) of

.175. This implies that there is a relationship between financial, information technology,

human resource and competitive strategies and performance of small and medium

enterprises.

The researcher also sought to test the significance of the regression model using Analysis

of variance.

Results of the study shows on table 4.9 above ( ANOVA) indicate the significance value

was 0.004 which is less than 0.05 thus the model is statistically significant in predicting

relationship between financial, information technology, human resource and competitive

strategies and performance of small and medium enterprises. Using an alpha of 0.05, the

results of the analysis show the calculated F-value of 3.46 while critical F-value =2.39.

Since the calculated F Value is larger than the critical F value it indicates that there is a

(statistically) significant relationship between financial, information technology, human

resource and competitive strategies and performance of small and medium enterprises

The results are shown in Table 4.11

Table 4.10 Coefficients

B Std. Error Beta t Sig.

(Constant) 1.419 0.230 6.169 0.000

Financial strategies, 1.146 0.097 0.189 2.554 0.037

35
Technology Strategies 0.809 0.085 0.159 2.736 0.005

Human resource strategies 0.738 0.084 0.021 2.068 0.048

Competitive strategies 0.529 0.127 0.249 1.930 0.017

Dependent Variable: Performance of Small and Medium Enterprises

Source, Field Data (2014)

The result of the study shown on table 4.11 above indicates:

Y =1.419+ 0.189 X1+ 0.159 X2 + 0.021 X3 + 0.249 X4 + ε

Where,

Y= Performance of Small and Medium Enterprises (PSME)

X1= Financial Strategies (FS)

X2= Technology Strategies (TS)

X3= Human Resource Strategies (HRS)

X4=Competitive Strategies (CS)

α = Constant

Hence:

PSME = β0 + β1 FS + β2 TS+ β3 HRS+ β4 CS +ε

The finding of the study show that financial strategies, information technology strategies,

human resource strategies and competitive strategies have positive coefficients, implying

that these independent variables predict performance of small and medium enterprises.

36
Therefore taking all independent variables (financial strategies, information technology

strategies, human resource strategies and competitive strategies) constant at zero (0);

performance of small and medium enterprises will be at 2.419. Therefore a unit increase

in financial strategies, information technology strategies, human resource strategies and

competitive strategies have positive coefficients will lead to 1.146, 0.809, 0.738 and

0.529 unit increases in performance of small and medium enterprises.

In terms of the variable with the greatest influence on the performance of Small and

Medium Enterprises relative, results indicate that competitive strategies (Beta=0.249)

had the greatest influence on the performance of SMEs , while the variable with the least

influence was human resource strategies (Beta=0.021)

The results of the study further indicate that p-value of = (0.037) for financial strategies,

(0.005) for technology strategies; (.048) for human resource strategies and (0.017) for

competitive strategies are smaller than the significance level of 0.05. The implications of

these results is that there is a significant relationship between financial strategies,

information technology strategies, human resource strategies and competitive strategies

and performance of small and medium enterprises.

4.4 Presentation of Findings

The results shows that the respondents agreed that SMEs : conducts team building

activities regularly, has implemented effective recruitment and selection strategies which

have ensured sourcing and acquisition of competent staff, adopted employee relation

strategies which have promoted organization harmony, established and used

compensation and benefits strategies which have enhanced employees motivation,

37
developed and implemented labour and employment laws compliance strategies which

have improved employees productivity, adopted and used training and development

strategies which have improved skill levels of staff and that the organization has

implemented the work safety strategies which has increased employees well-being. The

findings indicate that the enterprise conducts team building activities regularly and have

implemented effective recruitment and selection strategies which have ensured sourcing

and acquisition of competent staff. All these strategies have improved employees

performance and that of the organization.

The findings of the study are in line with the observations of Peng and Litteljohn (2001)

that human resources strategies include activities aimed at involving employees in

decision making, using clear personal policies in reward and punishment of employees,

emphasizing employee welfare, assessing employee performance, assessing employee job

satisfaction, and emphasizing employee productivity among others

4.5 Discussion

The Findings of the study indicate that SMEs have: adopted and used financing strategies

to support the enterprise operation and investment, implemented capital budgeting

strategies hence selecting operations and investments based on risk and expected returns,

adopted financial management strategies which has facilitated the management of cash

flow and balancing of the ratio of debt and equity, and adopted and used risk

management strategies that ensures that management of risk exposure so as to maintain

optimum risk return trade off that maximizes shareholders value. Results of the study

also shows that the enterprises have adopted and used risk management strategies and

policies that ensures that management of risk exposure so as to maintain optimum risk

38
return trade off that maximizes shareholders value; while The results further show that

the enterprises have implemented capital budgeting strategies hence selecting operations

and investments based on risk and expected returns.

The findings of the study concurs with the findings of Wijewardena, Zoysa , Fonseka

and Perera, (2004) that operations financial strategies ensure that all expenditures are

kept within organization budget, by facilitating resource planning, cost estimation, and

cost control. They also facilitate effective management of: resource costs, labor rates,

material rates, risk management, plant (buildings, machines, etc.), equipment, cost

escalation, indirect costs, and profit.

Results of the study indicate that SMEs: have adopted and used communication

strategies that have enhanced the rate of communication in the organization facilitating

decision making ; organization is using inventory management system strategies to

ensure that the organization maintains enough stock to meet demand without investing

in more than they require; uses data management strategies to store and maintain data for

immediate access as when needed; has adopted and effectively used management

information systems strategy by using the data as part of the strategic planning process

as well; has adopted and effectively used management information systems strategy by

using the data as part of the strategic planning process as well as the tactical execution

of strategy and that the enterprises use customer relation management strategies to

improve customer experience thereby enhancing organization performance. The result

also showed that the organization has adopted and effectively used information

39
communication technology and management information systems. The results of the

study is in line with the views expressed by Heide, Grønhaug & Johannessen, 2002) that

the organizations utilizes technology to enhance and maintain communication and

accountability for all managers and operational employees throughout the organization,

and to keep track of achievement of performance goals

Findings of the study show that generally SMEs have used varied competitive strategies

which include the use of unique brands that satisfy customer needs, skilled human

resources, appropriate and recent information technology and enterprises core capacity to

continuously innovate and effective marketing infrastructure and access to credit. The

study findings also indicate that enterprises strongest competitive strategy consist of the

unique brands that satisfy customer needs, while the least important competitive strategy

involve access to credit. The study findings are in line with the views of Enz (2008) who

noted that core competencies are a combination of competitive resources such as brands,

human resources (HR), information technology (IT) innovations, computer reservation

systems, niche marketing and advertising, and pricing tactics that can increase a firms’

capabilities and improve performance.

40
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This Chapter presents the Summary, Conclusions and Recommendation. It presents the

summary of the findings of the study. The chapter also makes some recommendations on

the way forward.

The study found out that the various business strategies influence the performance of

SMEs. It found out that the SMEs that had implemented business strategies reported a

steady growth.

5.2 Summary of the Findings

The study established that human resource strategies influence the performance of SMEs.

SMEs that had conducted team building activities regularly, had implemented effective

recruitment and selection strategies which have ensured sourcing and acquisition of

competent staff, adopted employee relation strategies which had promoted

organization harmony, established and used compensation and benefits strategies which

had enhanced employees motivation, developed and implemented labour and

employment laws compliance strategies which had enhanced employees productivity,

adopted and used training and development strategies which had improved skill levels of

staff and that the organization had implemented the work safety strategies which had

enhanced employees well-being.

41
The study found out that finance and the way that it is managed is the key determinant of

SMEs performance. Thus the SMEs have adopted and used financing strategies to

support the enterprise operation and investment, implemented capital budgeting

strategies hence selecting operations and investments based on risk and expected returns,

adopted financial management strategies which has facilitated the management of cash

flow and balancing of the ratio of debt and equity, and adopted and used risk

management strategies that ensures that management of risk exposure so as to maintain

optimum risk return trade off that maximizes shareholders value.

The study established that technology strategies enhance operational performance of the

businesses. Indeed SMEs have adopted and used communication strategies that has

enhanced the rate of communication in the organization facilitating decision making;

organization is using inventory management system strategies to ensure that the

organization maintains enough stock to meet demand without investing in more than

they require; uses data management strategies to store and maintain data for immediate

access as when needed; has adopted and effectively used management information

systems strategy by using the data as part of the strategic planning process as well;

has adopted and effectively used management information systems strategy by using

the data as part of the strategic planning process as well as the tactical execution of

strategy and that the enterprises use customer relation management strategies to improve

customer experience thereby enhancing organization performance.

42
The study found out that competitive strategies influence the performance of SMEs.

Hence small and medium enterprises have and use varied competitive strategies which

include the unique brands that satisfy customer needs, skilled human resources,

appropriate and recent information technology, enterprises organization capacity to

continuously innovate, effective marketing infrastructure and access to credit.

5.3 Conclusions of the Study

Human resource strategies influence the performance of SMEs as some SMEs conducts

team building activities regularly, have implemented effective recruitment and selection

strategies which have ensured sourcing and acquisition of competent staff, adopted

employee relation strategies which have promoted organization harmony. In addition

the SMEs have also established and used compensation and benefits strategies which

have enhanced employees motivation, developed and implemented labour and

employment laws compliance strategies which have effectively employees productivity,

adopted and used training and development strategies which have improved skill levels of

staff and that the organization has implemented the work safety strategies which has

increased employees well-being.

Finance and the way that it is managed is the key determinant of organization

performance. Thus SMEs have adopted and used financing strategies to support the

enterprise operation and investment, implemented capital budgeting strategies hence

selecting operations and investments based on risk and expected returns, adopted

financial management strategies which has facilitated the management of cash flow and

balancing of the ratio of debt and equity, and adopted and used risk management

43
strategies that ensures that management of risk exposure so as to maintain optimum

risk return trade off that maximizes shareholders value.

Technology strategies enhance operational performance of the businesses. Indeed SMEs

have adopted and used communication strategies that has enhanced the rate of

communication in the organization facilitating decision making ; organization is using

inventory management system strategies to ensure that the organization maintains

enough stock to meet demand without investing in more than they require; uses data

management strategies to store and maintain data for immediate access as when needed;

has adopted and effectively used management information systems strategy by using

the data as part of the strategic planning process as well; has adopted and effectively

used management information systems strategy by using the data as part of the

strategic planning process as well as the tactical execution of strategy and that the

enterprises use customer relation management strategies to improve customer

experience thereby enhancing organization performance.

Competitive strategies affect the performance of SMEs. Generally the enterprises have

used varied competitive strategies which include the unique brands that satisfy customer

needs, skilled human resources, appropriate and recent information technology,

enterprises organization capacity to continuously innovate, effective marketing

infrastructure and access to credit.

44
5.4 Limitations of the Study

The study focused on SMEs in Nairobi County; however there are many other SMEs

around the country hence only a small percentage of the target population was covered.

This might have an effect on the generalization of the results of the study as business

strategies are context influenced. But, the study used descriptive research design which

covered the study variables in detail

The study focused on only four study variables that are human resource strategies,

financial strategies, technology strategies and competitive strategies; however there are

many other variables that were not included in the study. But the study focused on these

variables in detail so as to add to the existing knowledge on the business

Some respondents did not provide authentic information but instead provided general

information making it difficult to obtain the required information. However the

researcher clarified the questions in the questionnaire in order to get direct answers.

Owing to the nature of the subject, some reluctance was experienced from some

respondents in terms of disclosing information with regards to the business strategies for

fear of being reprimanded by the managers in the organization who are responsible for

handling issues related to the matter under study. However the researcher assured the

respondents of the confidentiality of the information that they provided and sought

authority from management to undertake research in the organization.

45
5.5 Recommendation of the Study

The study established that human resource strategies influence the performance of SMEs

therefore recommended that there is need for the management of SMEs to develop

human resource competencies for both employees and management while at the same

time striving to attract employees with necessary experience and technical skills. This

will enable the organization to be innovative and creative hence competitive in the

market.

The study found out that finance and the way that it is managed is the key determinant of

SMEs performance its therefore recommended that SMEs develop a detailed and

realistic budget for allocating the capital necessary to facilitate efficient and effective

organization operation. Besides there is need to closely monitor and evaluate the

spending process to ensure the achievement of the objective of the organization. This will

increase efficiency of operations, reduce costs of organization operation

The study established that technology strategies enhance operational performance of the

businesses, its therefore recommended that SMEs effectively integrate and coordinate

technological innovations, production processes, marketing, customers’ needs and

satisfaction processes, financing and personnel. To ensure that the technology adds value

to the organization processes there is need to continuously appraise and add new systems

and infrastructure, ensuring that all systems will function reliably, and training all

relevant staff to use new systems and programs.

The study found out that technology strategies enhance operational performance of the

businesses therefore there is need for the organization to focus enough resources and

46
management attention on activities that build organization core competencies and

capabilities that are scalable such as management and employee’s bundles of skills,

knowledge, attitudes, capabilities and experiences, technology, customer-centric culture,

financial capacity and organization processes that ensure co-ordination of functional

activities and give a special advantage which in turn enhance the performance of the

organization.

5.6 Suggestions for Further Studies

This study only examined specific study business strategies that influence the

performance of SMEs located in Nairobi County in Kenya. However there are other

variables that are location specific which also contribute to the performance of SMEs.

Hence it is recommended that further research be done to identify and examine

additional business strategies that affect the performance of SMEs

The present study has relied largely on secondary data and is therefore restrictive and

lacking in clarification and enrichment of data that would have provided a more in depth

view of the subject matter. Therefore, primary data need to be also included in future to

complement secondary data and provide wider perspective to the present study.

The study examined the effect of price earnings ratio, market to book ratio and firm size

(total assets) were the independent variables and stock returns. However the study did not

include the moderating or intervening variables influence. There is need for future

research to explore moderating influence of other variables

47
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54
 APPENDICES

Appendix I: Letter of Introduction

A survey on the effect of business strategies on the performance of SMEs in Kenya

Dear Participant,
I am a Master’s student of Business Administration at the University of Nairobi Kenya,
and am conducting a research on the influence of business strategies on the performance
of SMEs in Kenya

The questionnaire will be used for research which is part of my master’s course. It should
not take more than 10 minutes to fill the questionnaire as all of questions just require you
to tick appropriate answer. Your answers will be kept strictly confidential and will only
be used for research purposes. Your name will not be mentioned anywhere on the
document so kindly give an impartial opinion to make the research successful.

Your cooperation is highly appreciated. If you need the findings of this research please
let me know
Thanks once again for your time and cooperation.
Yours Faithfully,

KROP RICHARD
University of Nairobi

55
 APPENDIX II: RESEARCH QUESTIONNAIRE

Introduction

Kindly answer all the questions to enable me analyze the influence of business strategies
in the performance of your organization. Your answers will be treated with utmost
confidentiality and will not be used for any other reason except for my MBA research.

Part A: Demographic Characteristics

1. Name of Organization (Optional)...................................................................................
2. Title of Respondent (Tick One) : Owner [ ] Manager [ ] Owner/ Manager [ ]
3. Gender : Male [ ] Female [ ]
4. Highest level of education achieved.
Primary [ ] Secondary [ ] College [ ] University [ ] other
specify………………
5. What line of business is your organization involved in?
Manufacturing [ ] ICT [ ] Construction [ ] Retail [ ] Wholesale [ ] Energy [ ]
Others
(Specify)...........................................................................................................................
6. How long as your business been in existence
1-4 Years [ ] 5 – 10 years [ ] 10 Years and above [ ]

PART B. Business Strategies Adopted By SMEs

7. Has your business established and implemented business strategies

Yes [ ] No [ ]

8. If yes which of the following business strategies has your organization implemented?
Financial strategies [ ] Technology Strategies [ ] Human Resource strategies [ ]
Competitive Strategies [ ] All of the above strategies [ ]

9. In your considered view, what effect has the implementation and use of business
strategies had on your business?
Positive [ ] Negative [ ] Neutral [ ]

56
 Part C: Performance of Small and Medium Enterprises
10. Kindly indicate the extent to which you agree with each of the following statements
as regards the indicators of performance of your business
Strongly Disagree Neither Agree Strongly
Disagree Agree nor Agree
Disagree

a) I consider sales growth a key indicator of performance 01 02 03 04 05

in our organization

b) I consider market share a key indicator of 01 02 03 04 05

performance in our organization

c) I consider profitability a key indicator of performance 01 02 03 04 05

in our organization

d) I consider stakeholder satisfaction a key indicator of 01 02 03 04 05

performance in our organization

Part C: Influence of Businesses Strategies on the Performance of SMEs

11. Kindly indicate the extent to which you agree with each of the following statements
as regards the implementation of business strategies in your organization on a scale of
1 – 5 where 1 means ‘Strongly disagree’ and 5 means ‘Strongly agree’
Strongly Disagree Neither Agree Strongly
Human Resource Strategy Disagree Agree nor Agree
Disagree

i. The organization has implemented effective 01 02 03 04 05

recruitment and selection policies.

ii. The organization has developed and implemented a 01 02 03 04 05

scheme of service for your employees

iii. The organization has developed a training and 01 02 03 04 05

capacity building policy

iv. The organization has conducted team building 01 02 03 04 05

57
 activities regularly

Financial Strategies Strongly Disagree Neither Agree Strongly

Disagree Agree nor Agree
Disagree

v. The organization has adopted an annual budgeting 01 02 03 04 05

process to lead its operations

vi. The organization has implemented an audit system to 01 02 03 04 05

ensure efficiency of organization resources

vii. The organization has adopted and used risk 01 02 03 04 05

management policies

Information Technology Strategies Strongly Disagree Neither Agree Strongly

Disagree Agree nor Agree
Disagree

viii. The organization has adopted and used information 01 02 03 04 05

communication technology policies that has

enhanced its operations
ix. The organization is using inventory management 01 02 03 04 05

system policies to ensure that the organization

maintains enough stock to meet demand

x. The enterprise uses data management strategies to 01 02 03 04 05

store and maintain

xi. The organization has adopted and effectively used 01 02 03 04 05

management information systems

xii. The organization use customer relation management

policies to improve customer experience

12. Which competitive Strategies has your organization adopted (Tick as

appropriate. Multiple responses allowed)

58
[ ] Unique branding

[ ] Skilled human resources

[ ] ICT

[ ] Pricing

[ ] Innovation

[ ] Access to cheap credit

[ ] Access to finance

[ ] Others (specify) ………………………………………

I wish to thank you for taking time to fill this questionnaire.

59
APPENDIX III: A SAMPLE LIST OF SME’S IN NAIROBI COUNTY (CBD)

Business Name Sector

1. Recours Four Kenya Consultants Ltd Services

2. Airfall Colling Services Services

3. Offers Africa Limited Services

4. Cutlery Duka - Nairobi Services

5. Niko Hapa Ventures Ltd Services

6. Wallpaper Kenya Services

7. Deluxe Fruits Ltd Services

8. Future Soft Technologies Services

9. Kuza Biashara Services

10. Urban Properties Consultants & Developers Services

Ltd
11. Demo Entertainment Services

12. Urban Properties Consultants & Developers Services

Ltd
13. Dipek Intiative. Kenya Services

14. Biashara Africa Limited Services

15. Finance and Systems Services

16. Freyr International Limited Services

17. ICXcellence Institutional Centre Ltd Services

18. Apex Lifestyle Consulting Services

19. Bero Tech Services

20. Pirelli Tyre Services

21. Masol Investments Limited Services

60
22. Wilsam Pharmaceticals Limited Services

23. Sadina Mini Market Services

24. Emmu Stage Stores Services

25. Caravet System Limited Services

26. Wedding Services Services

27. Clean Environment Services

28. Express Travel Group Services

29. AIS College Services

30. Janico Salon Services

31. Gris Cafe Services

32. Karis Services Services

33. Best Bite Cafe Services

34. Classic Touch Salon Services

35. Emanuel Cafe Services

36. Beacons Training Services

37. Harvest Travels Services

38. Silver My Health Services Services

39. Lelua Enterprises Services

40. Joel Enterprises Services

41. Tato Tailoring and Designers Services

42. Sofie Hair Stylist Services

43. Sammary Hard Ware Services

61
44. Barwasim Africa Consulting Services

45. Open World Services

46. All Round Management Consultancy Services

47. Leisure & Travel Services

48. Brand X Limited Trade

49. The Flag Shop Trade

50. Compiterways Limited Trade

51. Bulk Medical Suppliers Trade

52. Direct Sales and Distributors Trade

53. Roza Enterprises Trade

54. Jello Butchery Trade

55. On Time Merchants Trade

56. Olyeni Electornics Limited Trade

57. Credit Motors Trade

58. Ngara Timber Yard Trade

59. Dadson Enterprises Trade

60. Mimaki Agencies Trade

61. Fish Wholesalers Trade

62. Mwea Rice Wholesalers Trade

63. Millenium Sales Trade

64. Eco - Line Suppliers Trade

65. ABC Supplies Trade

62
66. Carlson Access Control Trade

67. Shrend Publishers Limited Trade

68. Limrode Enterprises Printing

69. Infra Investments Limited Printing

70. Kaperon Enterprises Printing

71. Hillspan Printing Press Printing

72. Star Printers Printing

73. EPZ Designers Printing

74. Science scope Ltd Services

75. Pinnacore Printers Services

76. Logistics & Infrastructure Group Services

77. Intermass Stationers & Printers Ltd Services

78. Brilliant Eagle Ltd Services

79. Murex International Ltd Services

80. Charti International Ltd Services

81. Son of Enterprises Services

82. Kenya Toner & Ink Suppliers Services

83. Good Shepherd Computers Services

84. Science Scope Ltd Services

85. Stadicom Ltd Services

86. Info Parts Ltd Services

87. Joriam Technologies Ltd Services

63
88. Techbiz Ltd Services

89. Brilliant Eagle Ltd Services

90. Splice Technologies Services

91. Charti International Ltd Services

92. Kenya Toners & Ink Suppliers Services

93. Next Technologies Ltd Services

94. Symphony Services

95. Info parts Ltd Services

96. Techbiz Ltd Services

97. Freetone Solutions Services

98. Splice Technologies Services

99. Dunia Link Communication Ltd Services

100. Intergrated Suppliers Services

101. Maskil Company Ltd Services

102. Massatech Ltd Services

103. Emalard Total Solutions Services

104. Empire Micro System Ltd Services

105. Freetone Solutions Services

106. Next Technologies Ltd Services

107. Symphony Services

108. Intergrated Suppliers & Consultancy Services

109. Emaland Total Solutions Services

64
110. Maskil Company Ltd Services

111. Empire Microsystems Ltd Services

112. Ovation Enterprises Ltd Services

113. Grey East Africa Services

114. Latest Communication Services

115. Intergrall Group Ltd Services

116. Armick Ltd Services

117. Pinnacore Printers Ltd Services

118. Michi Media Ltd Services

119. Ikart Ltd Services

120. Science scope Ltd Services

121. Pinnacore Printers Services

122. Logistics & Infrastructure Group Services

123. Intermass Stationers & Printers Ltd Services

124. Brilliant Eagle Ltd Services

125. Murex International Ltd Services

126. Charti International Ltd Services

127. Son of Enterprises Services

128. Kenya Toner & Ink Suppliers Services

129. Good Shepherd Computers Services

130. Science Scope Ltd Services

131. Stadicom Ltd Services

65
132. Info Parts Ltd Services

133. Interdata Systems Services

134. Intel Networks Ltd Services

135. Kenpak Color Printers Services

136. Keneco Mazingira Services Services

137. Son of Enterprises Services

138. Maxnan Enterprises Ltd Services

139. Nordic Partner East Africa Ltd Services

140. Value Choice Agencies Services

141. Soloh Worldwide Enterprises Services

142. Silver Dine Kenya Services

143. Aqua Enterprises Ltd Services

144. Graphi-tec Designs Ltd Services

145. Media Edge Interactive Services

146. Intel Networks Ltd Services

147. Maxnan Enterprises Ltd Services

148. Value Choice Agencies Services

149. Michi Media Ltd Services

150. Bevaj Furniture Services

151. Budget Furniture Ltd Services

152. Fast Choice Ltd Services

153. Webtribe Ltd Services

66
154. Splice Technologies Services

155. Splice Technologies Services

156. Zeon Business Systems Services

157. Helina Safaris Services

158. Senator Travel Safaris Services

159. Klass Travel & Tours Ltd Services

160. Uniglobe Northline Travel Services

161. Silverbird Travel Plus Services

162. Vintage Travel & Tours Services

163. Akarim Agencies Services

164. Boma Travel Services Services

165. Cupstone Travel Ltd Services

166. Venture Africa Safaris Services

167. Chronicle Tours & Travel Services

168. Africa Touch Safaris Services

169. Travel Mart Ltd Services

170. Venture Africa Safaris Services

171. Uniglobe Northline Travel Services

172. Intel Data Systems Services

173. Intel Networks Ltd Services

174. Alpex Consultancy Africa Ltd Services

175. Designer Tours & Travel Services

67
176. Broadlink General Merchants Services

177. Sarawet Agencies Services

178. Helina Safaris Services

179. Winter Tours & Travel Services

180. Signature Tours & Travel Services

181. Sky World Wide Express Services

182. Timeless Courier Services

183. Winter Tours & Travel Services

184. Sols Inclination Ltd Services

185. True Blaq Entertainment Services

186. Take two Communication Ltd Services

187. Motion Pictures Ltd Services

188. Xtreme Media Solutions Africa Services

189. Neo Marketing Ltd Services

190. Protecht Ltd Africa Services

191. Twaweza Communications Services

192. Motivator Enterprises Ltd Services

193. Envag Associates (K) Ltd Services

194. Millenium Management Consultant Services

195. Dotsavvy Services

196. Valley Point Telecoms Ltd Services

197. Roless Institute Services

68
198. Danny Andrew Ltd Services

199. Intergrall Group Ltd Services

200. Airpress Communications Services

201. Sanabora Design House Ltd Services

202. Liason Media Services

203. Hapany Ventures Services

204. Hopeland Advertising Services

205. Prodigy Design Services

206. Kenpak Color Printers Ltd Services

207. Color Print Ltd Services

208. Dual Pix Communication Ltd Services

209. Lavinda Ltd Services

210. Brainstorm Management Consultants Services

211. Ethics & Intergrity Institute Services

212. Institute for Capacity Development Services

213. Cobtrad Consultants Services

214. Institutional Consultants Ltd Services

215. Empire Microsystems Ltd Services

216. Sheer Logic Management Consultants Services

217. Pillar Audio Visual Services

218. Why Not Entertainment Ltd Services

219. Fontana Media Productions Services

69
220. Can Translators Services

221. Tamarind Translation Services

222. Spell man & Walk Company Services

223. Motion Pictures Ltd Services

224. Con Superbroom Services Ltd Services

225. Zeon Business Systems sultants Services

226. Mima Designs Services

227. Accression Agencies Services

228. Eden Industries Ltd Services

229. Kinyagi Foods Ltd Services

230. Interdata Systems Services

231. Intel Networks Ltd Services

232. Kenpak Color Printers Services

233. Keneco Mazingira Services Services

234. Son of Enterprises Services

235. Maxnan Enterprises Ltd Services

236. Nordic Partner East Africa Ltd Services

237. Value Choice Agencies Services

238. Soloh Worldwide Enterprises Services

239. Silver Dine Kenya Services

240. Aqua Enterprises Ltd Services

241. Graphi-tec Designs Ltd Services

70
242. Media Edge Interactive Services

243. Intel Networks Ltd Services

244. Maxnan Enterprises Ltd Services

245. Value Choice Agencies Services

246. Michi Media Ltd Services

247. Bevaj Furniture Services

248. Budget Furniture Ltd Services

249. Fast Choice Ltd Services

250. Webtribe Ltd Services

251. Splice Technologies Services

252. Splice Technologies Services

253. Zeon Business Systems Services

254. Helina Safaris Services

255. Senator Travel Safaris Services

256. Klass Travel & Tours Ltd Services

257. Uniglobe Northline Travel Services

258. Silverbird Travel Plus Services

259. Vintage Travel & Tours Services

260. Akarim Agencies Services

261. Boma Travel Services Services

262. Cupstone Travel Ltd Services

263. Venture Africa Safaris Services

71
264. Chronicle Tours & Travel Services

265. Africa Touch Safaris Services

266. Travel Mart Ltd Services

267. Venture Africa Safaris Services

268. Uniglobe Northline Travel Services

269. Intel Data Systems Services

270. Intel Networks Ltd Services

271. Alpex Consultancy Africa Ltd Services

272. Designer Tours & Travel Services

273. Broadlink General Merchants Services

274. Sarawet Agencies Services

275. Helina Safaris Services

276. Winter Tours & Travel Services

277. Signature Tours & Travel Services

278. Sky World Wide Express Services

279. Timeless Courier Services

280. Winter Tours & Travel Services

281. Sols Inclination Ltd Services

282. True Blaq Entertainment Services

283. Take two Communication Ltd Services

284. Motion Pictures Ltd Services

285. Xtreme Media Solutions Africa Services

72
286. Neo Marketing Ltd Services

287. Protecht Ltd Africa Services

288. Twaweza Communications Services

289. Motivator Enterprises Ltd Services

290. Envag Associates (K) Ltd Services

291. Millenium Management Consultant Services

292. Dotsavvy Services

293. Valley Point Telecoms Ltd Services

294. Roless Institute Services

295. Danny Andrew Ltd Services

296. Intergrall Group Ltd Services

297. Airpress Communications Services

298. Sanabora Design House Ltd Services

299. Liason Media Services

300. Hapany Ventures Services

301. Hopeland Advertising Services

302. Prodigy Design Services

303. Kenpak Color Printers Ltd Services

304. Color Print Ltd Services

305. Dual Pix Communication Ltd Services

306. Lavinda Ltd Services

307. Brainstorm Management Consultants Services

73
308. Ethics & Intergrity Institute Services

309. Institute for Capacity Development Services

310. Cobtrad Consultants Services

311. Institutional Consultants Ltd Services

312. Empire Microsystems Ltd Services

313. Nairobi Drug House Manufacturing

314. Optimum Knitting Manufacturing

315. Immaculate Textiles Limited Manufacturing

316. United Embroiders Manufacturing

317. Boss Bakers Manufacturing

318. Bake and Bite Bakers Manufacturing

319. Niceline Products Manufacturing

320. RM Petroleum Manufacturing

321. Nairobi Techno Sports Manufacturing

322. Laser Chemicals Manufacturing

323. Trans-Counties Investments Limited Construction

324. C.K. Building Contractor Construction

325. Ramco Hardware Construction

326. One’s Company Construction

327. Polytanks Limited Services

328. Carevet System Limited Services

329. Hemco Feeds Services

74
330. Boss Bakers Services

331. Wega Bakers Services

332. Eucla Bakers Services

333. Mina Bakers Services

334. Mashi Bakers Services

335. Supa Loaf Services

336. Bake & Bite Bakers Services

337. Primavara Picknick Services

338. Kim's Snacks Shop Services

339. Bakers Mall Services

340. Will Bakers Services

341. Ahadi Bakers Services

342. Luanda Bakers Services

343. Umoja Royal Bakers Services

344. Corner Bakers Services

345. Master Bakers Services

346. Nice Cake Bakers Services

347. N.K. Bakery Services

348. Beneka Home Bakers Services

349. Emmanuel Bakers Services

350. Maikar Products Manufacturing

351. Niceline Products Manufacturing

75
352. RM Petroleum Manufacturing

353. Coffee & Tea Maintainance Limited Manufacturing

354. Samphil Engineering Works Construction

355. Odhis Mechanical Engineering Construction

356. Usalama Engineering Works Construction

357. Nyagah Mechanical Engineering Construction

358. Kiko Engineering And Design Construction

359. Jetha Metal Engineering Work Construction

360. Oasis Fabricators Construction

361. Nairobi Techno Sports Construction

362. East African Canvas Co. Ltd Services

363. Digital City Ltd Services

364. Plenser Ltd Services

365. Allwin Agencies (K) Ltd Services

366. Propack Kenya Ltd Services

367. Vivek Investments Ltd Services

368. Coninx Industries Ltd. Services

369. Powerpoint Systems (EA) Ltd Services

76
370. Synermedica Pharmaceuticals (Kenya) Ltd Services

371. Coast Industrials & Safety Supplies Ltd Services

372. Isolutions Associates Services

373. Wotech Kenya Limited Services

374. Avtech Systems Limited Services

375. Kenya Bus Service Services

376. Muranga Forwarders Services

377. Kenya Highland Seed Co Ltd Services

378. Synermed Pharmaceuticals (K) Ltd Services

379. Tissue Kenya Ltd Services

380. Eurocon Tiles Products Ltd Services

381. Eurocon Tiles Products Ltd Services

382. Elite Tools Ltd Services

383. Onfon Media Ltd Services

384. Charlstone Travel Limited Services

385. Famiar Generating Sys Ltd Services

386. Chemicals & School Supplies Ltd. Services

387. Alexander Forbes Services

388. Services
Endevour Africa Limited
389. Services
Rongai Workshop & Transport Ltd
390. Services
R & R Plastics Ltd
391. Services
Chigwell Holdings Ltd

77
392. Services
Classic Mouldings Limited
393. Services
Pewin Cabs Limited
394. Services
Novel Technologies Ea Ltd
395. Services
Xtreme Adventures Ltd
396. Services
Vintage Africa Limited
397. Punjani Electrical And Industrial Hardware Services
Limited
398. Services
Spry Engineering Co. Ltd
399. Services
General Cargo Services Ltd
400. Services
Pinnacle (K) Travel & Safaris
401. Services
Panesars Kenya Limited
402. Services
Specialized Aluminium Renovators Ltd.
403. Services
Cube Movers Limited
404. Services
Brogiibro Company Ltd
405. Services
Total Solutions Ltd
406. Services
Tyremasters Ltd
407. Services
Xrx Technologies Limited
408. Services
Sensation Ltd
409. Services
Eureka Technical Services Ltd
410. Services
Palbina Travel Limited
411. Services
Waumini Insurance Brokers Ltd
412. Services
Asl Credit Limited
413. Services
Zaverchand Punja Limited

78
414. Services
Canon Chemicals Ltd
415. Services
Packaging Manufacturers(1976) Ltd
416. Services
Trident Plumbers Ltd
417. Services
Typotech
418. Services
Kinpash Enterprises Ltd
419. Services
Vehicle & Equipment Leasing Ltd
420. Services
Sheffield Steel Systems
421. Services
Complast Industries Ltd
422. Services
Dune Packaging Limited
423. Services
Hebatullah Brothers Limited
424. Services
Spice World Limited
425. Services
Museum Hill Wines Ltd
426. Services
Yogi Plumbers Ltd
427. Services
Vajra Drill Ltd
428. Services
Melvn Marsh International Ltd
429. Services
Kandiafresh Produce Suppliers Ltd
430. Services
Fayaz Bakers Limited
431. Services
Specicom Technologies Limited
432. Services
Mombasa Canvas Ltd
433. Services
Silverbirdtravel Plus Ltd
434. Services
Iron Art
435. Services
Radar Limited

79
436. Services
Master Power Systems
437. Services
Hardware & Welding Supplies
438. Services
Masters Fabricators Ltd
439. Services
Software Technologies Ltd
440. Services
Heritage Foods Kenya Ltd
441. Services
Africa Tea Brokers Ltd
442. Services
Raerex (Ea) Limited
443. Services
Travelshoppe Company Ltd
444. Services
Oriental General Stores Ltd
445. Services
Chuma Fabricators Ltd
446. Services
Statprint Ltd
447. Services
Sollatek Electronics Ltd
448. Services
Smartbrands Ltd
449. Services
De Ruiter East Africa Ltd
450. Services
Kisima Drilling (Ea) Ltd
451. Services
Care Chemists
452. Services
Brollo Kenya Ltd
453. Services
Canon Aluminium Fabricators Ltd
454. Services
Satguru Travel & Tours Ltd
455. Services
Kunal Hardware And Steel
456. Services
Deepa Industries Limited
457. Services
Skylark Creative Products Ltd.

80
458. Services
Uneek Freight Services Ltd
459. Services
Bbc Auto Spares Ltd
460. Services
Lantech (Africa) Limited.
461. Services
Polytanks Limited

81