Relationship between Innovations and Enterprise Growth Among Small and Medium Electrical Machinery Enterprises in Kenya

Abstract

Small and Medium Electrical Machinery Enterprises (SMEMEs) in Nairobi City County in Kenya have traditionally provided permanent employment to skilled artisans, craftsmen, technicians, engineers and managers. Their wide range of activities has also served as means of providing relevant industrial field attachment placement to trainees in tertiary institutions and universities to acquire practical skills needed for national development. Notwithstanding, the important contribution that they have made the SMEMEs have not sufficiently responded to the increasing demand for these services. This research sought to examine the relationship between innovations and enterprise growth among SMEMEs in Nairobi City County. The main objective of the study was to explore and describe the relationship between innovations and enterprise growth among SMEMEs. The study adopted a descriptive survey design. Qualitative and quantitative approaches were used to find out how and in what ways innovations were related to enterprise growth among SMEMEs in Nairobi City County. The target population was all the registered SMEMEs financing and managing their enterprises in Nairobi City County in Kenya. Both probability and non-probability sampling were used to focus on important and in-depth information given by the entrepreneurs in SMEMEs. Stratified probability and purposive non-probability sampling techniques were employed to provide required important and in-depth information with respect to how and in what ways innovations contributed and led to enterprise growth. A stratified random sample of 96 SMEMEs was drawn from a target population of 502. Structured questionnaire, interview guide, and observational form were used to get important and in-depth information on relationship between innovations and enterprise growth. Quantitative data collected was analyzed using statistical package for the social sciences (SPSS) version 18.0. This yielded descriptive and inferential statistics on relationship between innovations and enterprise growth. Relationships and predictions among variables were determined using correlation and regression techniques. The research study found that innovations had positive impact on the enterprise growth. The research recommended that the government should formulate and implement policy to support and sustain innovations and that small and medium electrical machinery enterprises should step-up their innovations for increased enterprise growth and competitiveness.