Relationship between Managerial Competence and Growth of Top 100 Enterprises in Kenya
Keywords:
Managerial competence, SMEs, KenyaAbstract
The growth trends of Small and Medium Enterprises (SMEs) raised many questions that why and how these SMEs were able to transform themselves into big business giants. The objective of the study was to investigate on the Relationship between Managerial Competence and Growth of Top 100 Enterprises in Kenya. In this study, descriptive approach was achieved by describing the data and characteristics about the population of phenomenon being studied. In the study, the target population, comprised of the Top 100 KPMG feted enterprises in Kenya in the year 2010 - 2015. This will yield 287 mid-sized companies. The sample size was 164 top managers in the Top 100 mid-sized companies. The study used the stratified random sampling technique as it ensured that all listed companies were represented according to the various sectors. The target population will be stratified into the 2 strata (service sector SMEs and non-service sector SMEs). Further, random sampling was used to select 164 top managers in the Top 100 mid-sized companies. Random sampling ensured that the study eliminated bias in its choice of respondents. The study used primary data collected through questionnaire. To enhance the response rate, the study put into consideration the research ethical issues. After data collection, the filled-in and returned questionnaires were edited for completeness, coded and entries made into Statistical Package for Social Sciences (SPSS version 20). A multivariate regression was also used to test the combined effect of all independent variables. The findings were presented in forms of tables and charts. The study found out that managerial competence had a positive and significant effect on growth. Therefore the study concluded that managerial competence leads to completeness of tasks. Therefore, the study recommends for top 100 enterprises to consider managerial competence since they are very crucial in the growth of the enterprises.
Keywords: Managerial competence, SMEs, Kenya
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