Effect of Human Capacity Building on the Performance of Small and Micro Enterprises in Kisumu City, Kenya

Francis Ofunya Afande


Aims: The overall objective of the study was to evaluate the impact of human capacity building on performance of Small and Medium Enterprises. The study was guided by the following specific objectives: to examine the current human capacity building approaches used by SMEs in Kisumu; and to assess the impact of human capacity building on the performance of SMEs in Kisumu.

Study design: a descriptive survey design was used to undertake the study.

Place and duration of the study: The target population was drawn from the 7012 businesses that are licensed by the Municipal Council of Kisumu of which 80 percent are SME’s (Kisumu Municipal Office, June 2013, 2010).  The study took a period of one month.

Methodology applied: The sample consisted of 320 respondents selected from owners and staff of SMEs in Kisumu municipality. Primary data was collected from the proprietors/managers of the SMEs with the aid of semi-structured structured questionnaires. Data pertaining to the objectives of the study was analyzed using descriptive statistics, which includes measures of central tendency, measures of variability and measures of frequency among others. In order to determine the relationship between human capacity building and SMEs performance, correlation and regression analyses were undertaken. In addition, bar charts, pie charts and graphs were used. The information was presented and discussed as per the objectives.

Results: Findings of the study show that the main training approaches were used by the SMES include the following: formal training approaches only, on-the job-training approaches only; job-specific training approaches only; a combination of formal training approaches and on-the job-training approaches; and a combination of formal training approaches, on-the job-training approaches and job-specific training approaches.

Conclusions: Based on findings of the study, the following conclusions were made: Research, management, and policy development of training in the SME sector needs to be more open and flexible in order to address the idiosyncratic nature of SME requirements; research, management and policy instruments of training support will need to interact with, and be responsive to, the subtle distinctions of context that will moderate what is more appropriate, and more likely to be welcomed, in the small business sector; and if training is to be offered to SMEs it should encourage as little time away from the workplace; it should be flexible and inexpensive.

Keywords: Human Capacity Building, performance, small and micro enterprises.

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