EFFECT OF TECHNICAL EDUCATION POLICIES ON TECHNOLOGY ADOPTION AMONGST MICRO AND SMALL ENTERPRISES IN KENYA

Abstract

The Kenya’s economic recovery strategy for wealth and employment creation recognizes the great role that Micro and Small Enterprise (MSE) sector play in wealth generation, employment creation and poverty reduction. Consequently, the government has put in place policies and promotional programmes aimed at improving the Kenyan economy through promotion of Micro and Small Enterprises. Among these, the government has invested a lot in enhancing technical capabilities amongst its youth who are expected to start MSES for self employment after graduation. These capabilities come in form of information and skills- technical, managerial and institutional – that allow productive enterprises to utilize equipment and technology efficiently. The purpose of technology is to improve productivity of enterprises, and enhance the quality of goods produced by enterprises to help them with-stand local and international competition. However, despite all these efforts, the competitiveness and growth prospects of MSEs fall below the levels required to meet challenges of increasing and changing basis for competition. The objectives were to determine the effect of technical and entrepreneurial education and provision of youth development fund on technology adoption among MSEs in Kenya. A descriptive research design was used. Stratified random sampling technique was employed to select the sample. Data was analyzed using the Excel computer software. It was found that access to credit and inadequate institutional capacity to support adaptation and absorption of modern technologies still remain the main impediments to growth and sustainability of the MSES. The recommendations were that MSEs need to be provided with adequate finances, tools and equipment coupled with field visits to industries and performing MSES for benchmarking and to upgrade their business skills.