Financial Strategy Implementation and Profitability of Small and Medium Entreprises in VOI

ABSTRACT

Finance is a major challenge for the prosperity of SME’S. Implementing revenue, cost and investments financial strategies are major drivers for improved profitability performance in SME’S. Achieving SME profitability by utilizing SME resources in certain situations and circumstances requiring strategic action over time is paramount.

Implementation theory provides a way of integrating information from different agents involved in financial strategy implementation.

Designing of systematic information exchange methods are at the heart of the theory, which is complemented by financial resource allocation rules which makes possible allocation decisions that are optimal in view of the profitability measurements in place.

In A systematic sample of one hundred SME’s was selected from a population of four hundred SME’s in Voi town area in Kenya by picking every third SME recorded starting from the second SME recorded.

The quantitative data findings were presented using descriptive statistics methods including regression, Anova, and the F statistic.

Keywords: Financial strategy, profitability, investment, firm performance and SME challenges