THE EFFECTS OF HUMAN RESOURCE MANAGEMENT FUNCTION ON THE GROWTH OF MICRO ENTERPRISES, KENYA

Kahando David Maina

Karatina University, Kenya

Ng’ang’a S. Irura

Karatina University, Kenya

Kyalo Teresia N.

Karatina University, Kenya

ABSTRACT

Globally, Micro and small enterprises (MSEs) have been accepted as the means through which accelerated economic growth and rapid industrialization have been achieved. In most developing countries like Kenya, MSEs are generally regarded as the driving force of economic growth in job creation and poverty reduction. Besides, various studies have been conducted highlighting the constraints which affect the growth of micro enterprises but to no success since they still stagnate and eventually fail. To fill the gap, the researcher conducted a research on the effects of human resource on growth of micro enterprises. The research objective that guided the study was to investigate how human resource affects the growth of micro enterprises. The study sample was drawn from a population of 210 enterprises comprising six different business trade areas whose owner/managers are registered with Murang’a Jua kali Pioneer Association. Stratified random sampling was used since the population was not homogeneous. To constitute the study sample, respondents from each stratum were selected using Systematic sampling. The researcher collected Data from a sample size of 70 respondents of various enterprises using the administration of structured questionnaires. The quantitative data was processed by statistical package for social sciences (SPSS). The analysis was done using descriptive statistics. Simple regression analysis was used to test relationships between variables. The results showed that human resource is very significant since p-values 0.002 < 0.05 influence change in the growth of the enterprises. The study found out that there is need for micro enterprises to consider human resource function to boost the growth of micro enterprises.  In view of the findings, the study recommended government intervention in organizing regular training and skill development since human resource has an important effect on the growth of micro enterprises.

Full Text PDF Format