Peformance of small and medium enterprises in the service sector in eldoret municipality of kenya

Abstract

Small and Medium Enterprises (SMEs) are considered important in raising the standard of living through job creation and self-employment in most developing countries. Also it is considered an engine of economic growth of most countries. Despite availability of resources to start or operate men and women owned businesses, there exists disparity in performance especially in growth and size, with women registering lower performance compared to men. The main objective of this study was to examine the effect of the relationship between firms' resource structure (financial, personal goals, and human capital) and performance of women-owned and men-owned SMEs. A sample of 600 was drawn from a target population of 1200 SMEs in the service sector in Eldoret Municipal Council, Uasin Gishu County, Kenya. Primary data was collected through the use of questionnaire and interviews. From the study the variables found to strongly influence performance of SMEs were human capital and financial structure. In addition, access to these two types of capital varies by gender.