Role Of Business Incubators On Growth Of Micro And Small Enterprises In Bomet County, Kenya

Abstract

Micro and small enterprises are considered to be the engine of growth to most economies. They are believed to account for about ninety five percent of the operating firms in the world which lead to industrial development, job creation, and provision of goods and services to the locals. They also contribute a lot to growth of gross domestic product. However, it is said that three out of five micro and small enterprises fail in less than a year after commencement of their operations and the statistics indicate that Bomet County is the most affected area with Micro and small enterprise growth at 2.1% only. Therefore, the study sought to investigate the role of business incubators on growth of Micro and Small Enterprises in Bomet County, Kenya. Specifically, the study concentrated on establishing the role of financial resource support on growth of micro and small enterprises, examining the role of Network skills on growth of micro and small enterprises, and assessing the role of management skills on growth of micro and small enterprises. The study was anchored on passive learning model, network theory, and business incubation model. This study used a correlation research design. The target population for this study was 615 micro and small enterprises, stratified sampling technique was used and Yamane‟s formula was adopted to achieve a sample size of 242 respondents. Structured questionnaires were used to collect primary data which was coded and analysed by use of SPSS version 23.The validity and reliability of the instrument was determined by conducting pilot testing which was carried in Kericho County where 10% of the sample size was used. Cronbach‟s Alpha coefficient was used to determine the reliability where 0.7 or above is considered to be the ideal situation. Collected data was analysed using inferential statistics; regression analysis was used to establish the relationship between the research variables and correlation analysis to establish the nature of the relationship between the independent variables and dependent variable. The results were presented in form of frequency distribution tables. The findings indicated that financial resource support assisted the MSEs in accessing affordable loans, friendly repayment periods, sponsorship and funding as well as financial training and coaching. While business training support assisted in networking the MSEs with customers and investors. Management skills assisted in nurturing marketing skills, human resource skills and business management skills. The study concluded that there existed positive significant role of financial resource support and growth of MSEs (Beta=0.425, P<0.05). Network skills had positive significant role on growth of MSEs (Beta=0.294, P<0.05).There was significant role of management skills on the growth of MSEs (Beta=0.268, P<0.05). Hence, business incubators had a positive significant role on the growth of MSEs in Bomet County. The study recommended that the County Government of Bomet develop financial support business incubators project, conduct business training programs, increase business networks as well as provide sufficient business skills to the MSEs. The findings will be of great importance to the policy and decision makers, scholars and academicians, it will provide information to donors and supporters of the Kenyan economy and will help in examining suitable and attractive fields which could be targeted by the business incubators