Factors affecting performance of micro, small and medium enterprises (MSMEs) in Arumeru District.

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