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Factors Affecting Performance of Micro and Small Family Business Enterprises in Nairobi County

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dc.contributor.author Karanja, Maureen Muthoni
dc.date.accessioned 2015-11-16T09:51:35Z
dc.date.available 2015-11-16T09:51:35Z
dc.date.issued 2015
dc.identifier.uri http://erepo.usiu.ac.ke/11732/1491
dc.description A Research Project Report by Karanja Maureen Muthoni, Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract Family owned businesses may start of as micro and grow into small, medium and large corporations if well nurtured. They play an important role in employment, income generation and wealth accumulation. These businesses are a dominant form of ownership in majority of the world economies. Small and micro family owned businesses contributed over 50% of new jobs created in the year 2005 in Kenya. The study sought to establish the factors affecting performance of micro and small family business enterprises in Nairobi County. It sought to answer the following questions: does the leadership style of the founder member influence the performance of Micro and Small family business enterprises in Nairobi County; how does succession planning affect the performance of Micro and Small family business enterprises in Nairobi County; how do the conflicting interests of various stakeholders involved in the family business influence the growth and sustainability of family businesses and how do governance structures influence the performance of Micro and Small family business enterprises in Nairobi County.This study adopted a descriptive research design. The target population consisted of employees working for MSMEs family business within the CBD which were duly registered with the Nairobi County Government by way of trading licence. This research collected primary data using questionnaires comprising of both open and closed ended in line with the objectives of the study. The study established that the founders’ leadership style affected growth and sustainability to a great extent. The respondents also reported that the management of the businesses trusted their employees and enticed them towards a common interest for the business. The study found that majority of the respondents agreed that the business founder monitored employees closely to ensure they performed their tasks and that that business developed employees with skills to take up more tasks. The respondents were neutral as to whether there was a clear plan as to the leadership and their deputies in the organization. The study revealed that leadership preparation affected growth to a moderate extent. The study found that the business was able to survive competition effectively and had an edge over its competitors that the business had been able to meet its clients’ demand on time and that family members played a key role in the management of the business. The study concluded that that it affects growth and sustainability of the family business to a moderate extent. Family members play a key role in the management of the business but had no say on who was appointed as managers in the organization. The study also concluded that family members fight for the control of the entire business and the scope of services offered by the company. This was because the governance structures provide important information relating to new policies and trade secrets but may not expose the owner to economic trends and insights on how other business pursue new approaches. The study recommends that managers in the organization be given specialized training on how to manage the employees and also that the employees be offered relevant training that will enhance their skills in performing the tasks assigned. This study therefore recommends that business do not give sole leadership and management in all departments to family members but rather employ outsiders are the more qualified. This will not only bring impartialness in making decisions but will also reduce conflict in leadership among family members. en_US
dc.publisher United States International University - Africa en_US
dc.subject Performance en_US
dc.subject Micro and Small Family Business Enterprises en_US
dc.subject Nairobi County en_US
dc.title Factors Affecting Performance of Micro and Small Family Business Enterprises in Nairobi County en_US
dc.type Thesis en_US


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