Training and Performance of Micro and Small Enterprises in Kisii County in Kenya

Abstract

Training plays a significant role in contributing to performance of Micro and Small Enterprises (MSEs) success that eventually results in economic growth.A survey by the Kenya National Bureau of Statistics in the year 2016 indicated that 400,000 MSEs are dying annually all over the country and in the 47 counties. This has made the collection of revenue in Kisii County to be erratic and unpredictable. The main aim of this study was to establish the relationship between training and the performance of micro and small enterprise in Kisii County, Kenya. This study was guided by the following specific objectives: To establish the relationship between Managerial training and the performance of MSEs in Kisii County, to determine the relationship between technical training and the performance of MSEs in Kisii County, to evaluate the relationship between financial training and the performance of MSEs in Kisii County, to establish the relationship between networking training and the performance of MSEs in Kisii County and to determine the relationship between governance training and the performance of MSEs in Kisii County to establish the moderating relationship between training on legal and regulatory requirements and the performance of MSEs in Kisii County. The study was anchored under rational model theory, human capital theory, pecking order theory, social exchange theory and workplace social networks, agency theory, dynamic capabilities theory and regulatory theory. A descriptive survey design was used to carry out the study. The target population was 12,772 owner managers. The sample size was 384 which was obtained through simple stratified random sampling where 9 strata were studied. Data was collected using questionnaires. Data was analyzed using Statistical Package of Social Sciences (SPSS) version 20.0 computer software. The hypotheses were also tested using the t- test. Results of the study Managerial, technical training, financial training, governance, networking training, were found to be satisfactory in explaining performance of micro and small enterprises in Kisii County. This was supported by coefficient of determination also known as the R square of 51.2%. This means that independent variables explain 51.2% of the variations in the dependent variable which was the performance of micro and small enterprises in Kisii County. The ANOVA results indicated that the overall model was statistically significant. This was supported by an F statistic of 72.068 and the reported p value (0.000) which was less than the conventional probability of 0.05significance level. Regression of coefficients showed that Managerial training and performance of micro and small enterprises in Kisii County had a positive and significant relationship (r=0.06 p=0.000). The results also revealed that technical training and performance of micro and small enterprises had a positive and significant relationship (r=0.072, p=0.000). The results also revealed that financial training and performance of micro and small enterprises had a positive and significant relationship (r=0.551, p=0.043). The results also showed that networking training and performance of micro and small enterprises had a positive and significant relationship (r=0.043, p=0.052). Further, a moderating variable was run. The R2 before moderation was 51.2% but after moderation the R2 increased to 51.7%. This implies that legal requirements moderate the relationship between training and performance of micro and small and enterprises in Kisii County. The study concluded that Managerial training, technical training, financial training, governance and networking training influences the performance of micro and small enterprises. It was recommended that more Managerial, technical, financial, governance and networking trainings are organized for micro and small enterprises in Kisii County.