Non-Financial Constraints Hindering Growth Of Sme’s In Kenya: The Case Of Plastic Manufacturing Companies In Industrial Area In Nairobi County

It is generally accepted that SMEs are becoming increasingly important in terms of employment, wealth creation, and the development of innovation. However many problems encounter SMEs and as a result, many firms do not reach their full potential and fail to grow. In addition it is generally known and accepted that there is a high mortality rate of SMEs within the first two years. Given this high failure rate, it becomes vital to research the factors/characteristics/management abilities that are required to enable the SME to survive and indeed progress to the growth phase of the organizational life cycle. This study sought to determine the non-financial factors affecting the growth of SMEs in Kenya. The study employed a cross sectional research design to achieve the objectives. The target population under study were the licensed SMEs by Nairobi City Council in 2013. Of the licensed SMEs in Kenya, an estimated 50,000 licensed SMEs are located in Nairobi of which at least 100 SMEs were randomly selected as the sample size. The study used a questionnaire to collect the required data. The data was collected, coded, quantified and analysed quantitatively and qualitatively. Quantitative data was analysed with the use of statistical package for social sciences (SPSS). The findings indicate that entrepreneurial influences, advertising, technology and innovation, laws and regulations, business location and competition influence the growth of SMEs in Kenya. The study recommends that managers undergo training on how to manage and advertise the SMEs, SMEs should invest in new innovations and technologies and corruption should be tacked by the government