Abstract:
The main objective of the study was to assess factors affecting performance of Micro, Small
and Medium Enterprises (MSME’s) in Arumeru District. The study intended to achieve three
objectives including; examining performance of MSMEs in terms of sales, business value and
number of employees, to determine influence of government laws and regulations on
performance of MSMEs and to assess influence of entrepreneurial skills on performance of
MSMEs .The study used descriptive survey research design and quantitative research
approach. This study involved a total of 120 respondents who were obtained through simple
random sampling technique. Data were collected using questionnaires and analyzed though
descriptive statistics such as mean and standard deviation. Findings revealed that
performance of business in terms of sales, capital and number of employees varied in terms of
seasons. For instance, business was not performing well in low season; in normal season
business was moderately performing and were performing high in high season. Also the study
revealed that all types of entrepreneurial skills influenced positive business performance. The
study concludes that acquisition of relevant entrepreneurial skills is crucial for effective
business operations. It is recommended that Arumeru District council should keep stable
regulations which are supportive to businesses. Owners of MSMEs should attend short term
training programs which are offered by different trainers
