Strategic Factors Influencing SMEs’ Participation In The Securities Exchange

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dc.contributor.author Kamurasi, Judith Tindyebwa
dc.date.accessioned 2017-08-28T06:32:26Z
dc.date.available 2017-08-28T06:32:26Z
dc.date.issued 2017
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3325
dc.description A Research Project Report 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 The objective of this study was to find out the key strategic factors influencing SMEs participation in the NSE with specific focus on the top one hundred in Nairobi Kenya. The study was guided by specific objectives that sought to: establish the scope of operation of small and medium size enterprises necessary for their participation on the bourse, assess the systems and processes in small and medium enterprises, and to determine the effect of corporate governance requirements on participation of small and medium enterprises on the bourse. The study adopted a descriptive research design. The approach was deemed appropriate and useful towards assessing of the elements influencing listing of SME firms on the securities exchange. The population of the study included both the Top one hundred Small and Medium Enterprises in Nairobi County and thirteen SMEs listed on the Nairobi Securities Exchange (NSE). The sampling frame included a list of eligible SMEs listed on the NSE. Stratified sampling technique was used for the study where random sampled quotas were selected from both listed and non-listed SME’s. The sample size of SMEs was determined based on Yamen’s formula (Yamane, 1967) that derived 50 companies and all the 13 listed SMEs were considered for sampling. Primary data was used to obtain information in this study using questionnaires. The questionnaires were pretested by the researcher to ascertain suitability of the tool before actual administration. The researcher used quantitative analysis. Correlation and regression analysis was used to examine existing relationships between the variables. The study revealed that, SME firms developed and exploited new products, technologies, and services that brought changes in the economy, and to increase the size of the SME firms, financial support was obtained from outside the business to cover the additional investment required. The study showed that the decision-making process in SMEs goes through the manager, and through trusted assistants. The study revealed that, formalized strategic planning, human resource management, marketing research, financial planning and control do guarantee market success, and human resource development is driven by operational needs and priorities. The study showed that outside director(s) of the firm had resources that were complementary to those of inside directors. The role of the firm’s board members was to provide legitimacy, to administer advice and counsel, to act as a link to important stakeholders or other significant bodies, and to facilitate access to resources such as capital and building external relations. The study concludes that, family members of SME owners do not have advantages with regard to firm specific knowledge, lack outside experience, and general business knowledge. Informality is considered a function of lack of managerial resources and expertise to identify skill deficiencies in SMEs, and appointments are beneficial to the firm in terms of enhancing external resources, and trust in the firm is considered a critical element in enhancing the quality of information and enhancing various types of network exchange. This study recommends SMEs to explore supplementing their public securities exchanges with private securities exchanges similar to those that exist in Taiwan and the United States (US) because these can provide more platforms for enterprises and entrepreneurs to raise capital and allow investors with different risk appetites to participate. These can also provide more platforms for enterprises to raise risk capital for business innovation. en
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Strategic Factors en_US
dc.subject SMEs’ Participation en_US
dc.subject Securities Exchange en_US
dc.title Strategic Factors Influencing SMEs’ Participation In The Securities Exchange en_US
dc.type Thesis en_US

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