TRANSPORTATION AS A DETERMINANT OF SMALL AND MEDIUM ENTERPRISES PERFORMANCE: CASE OF KIBERA DIVISION OF NAIROBI, KENYA
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Small and medium enterprises (SMEs) are important for the growth of the economy and job
creation in any Country. However, the performance of SMEs is a function of various
determinants both external and internal. In order to realise full benefits from SMEs, both the
external and internal determinants need to be favourable. The purpose of this study was to
determine the impact of selected transportation factors on SMEs. Transportation is one of the
external determinants of performance of SMEs. This research endeavoured to meet the following
objectives:
To determine the impact of transport cost differentials on performance of SMEs, to establish the
relationship between transport infrastructure development and performance of SMEs, to
determine the impact of transport insecurity on the performance of SMEs and to assess the
impact of enforcement of public roads and access act on performance of SMEs. The study
employed a descriptive survey research design. The target population comprised of 3000 traders
in Kibera involved in general retail businesses. The researcher selected the sample from the
population by considering the 10 villages in Kibera to be clusters for the purpose of this study.
The study then used simple random sampling to pick a sample of 350. The researcher analyzed
data using both descriptive and inferential statistics. Data was analyzed using statistical
packages. Based on the findings of the study, it was concluded that there is significant
relationship between transportation factors (of cost of transport, infrastructure development, and
transport related insecurity, enforcement of roads and access act) and performance of SMEs. The
study recommends that further related studies on the impact of transportation on the performance
of SMEs should be done.