Influence of Strategic Formulation on the Growth of SMEs in Garissa Township.

Abstract

ABSTRACT

Small and Micro-Enterprises in Kenya perform a critical function in the country’s economy. They are observed as the instrument of growth for they are key in employment generation, goods and services provision, and are also key drivers of industrialization, competition, and innovation. This research investigated the influence of strategy formulation on the growth of SMEs in Garissa Township. A descriptive research design was employed. The targeted population was 1,109 SMEs registered in Garissa Township by the end of the year 2019.  A sample size of 294 respondents was selected by purposive sampling technique. A semi-structured questionnaire was used in primary data collection. Data collected was coded, edited, and analyzed through the SPSS tool for descriptive and inferential statistics. The analyzed data were presented by the use of tables and graphs with recommendations made. From the study, the researcher established that 60.7% of the variation in SMEs growth was explained by the strategy formulation variable. The study concluded that the formulation of strategy affected SMEs growth in Garissa Township. The study, therefore, recommends that SME owners should focus more on strategy formulation in their organizations to boost growth. The study will be useful to the management of SMEs, entrepreneurs, business owners, key policymakers and legislators, scholars, and other researchers.

Keywords: Strategic Formulation, Growth of SMEs, Garissa Township