Factors Affecting the Performance of Faith Based Small and Medium Enterprises in Kenya: A Survey of Meru County

Abstract

Purpose - The role of faith based Small and medium enterprises (SMEs) has been recognized as important to a country's development as it is considered an engine for growth and poverty reduction through the creation of jobs and incomes for the people. The primary role of most faith based enterprises include promoting standard of living of underprivileged members of society; meeting their spiritual, social, and physical needs of the group's constituents. Several factors do influence the performance of these faith based Small and Medium enterprises.

The general objective of this study was to identify and analyze the factors affecting the performance of Faith based small and medium enterprises in Kenya and their role. The study wasseeking to answer the following questions; to what extent does integration of religious values affect performance of faith based small and medium enterprises in Kenya?

Does access to financial resources affect the performance of Faith Based small and medium enterprises in Kenya? To what extent does entrepreneurial skills affect the performance of faith based small and medium enterprises in Kenya? How does leadership affect the performance of faith based small and medium enterprises in Kenya? And does government policies affect the performance of faith based small and medium enterprises in Kenya.

Design/methodology/approach -The study used exploratory approach to carry out a descriptive survey. The study population was faith based small and medium enterprises based in Meru county that have been in operation for the last three years. Out of the total number of targeted population units, the researcher identified a total of forty {40} respondents who are managers of Faith based Small and Medium Enterprises based in Meru town. The study used a well-structured questionnaire and interview schedules for data collection. This study collected both qualitative and quantitative data from both primary and secondary data sources and used statistical Package for Social Sciences Version 15 to analyze the tabulated data.

Findings–The study found out from a response rate of 87.8 % that performance goals and targets, set in production and low costs for the FBSMEs can only be achieved when FBSMEs are provided with good FBSME-friendly policies, conducive operating environment, improvements in infrastructure, peace and security; and have the right type of personnel, that have cooperative attitudes and spirit, good team work, high morals, high motivation, high performance goals, have the desire to achieve the company's goals and objectives and are served with good communication and religious values.

Practical implications -The study recommended that Government strengthens the capacity of FBSMEs and other financing windows and lower interest rates and other cost of funds and also consider the expansion, in scope and operation and enhance other sources of finance available to the enterprises