Market Linkages and Growth of Small and Medium Enterprises: Insights from County Government Support Programs

Abstract

Small and medium enterprises suffer from inability to grow their markets and growth was curtailed by years of existing in the narrow markets at inception. This study sought to assess how market linkages offered by the county government affect the growth of SMEs in Laikipia East Sub-County, Kenya. This proposed study adopted a descriptive survey design and targeted 1200 registered SMEs in Laikipia East Sub-County who have had contact and engagement with the County Government of Laikipia via the Laikipia County Enterprise Development fund. A sample of 291 SMEs was calculated from which data was collected from the founders using a questionnaire. Data was then analysed using descriptive and regression analysis for quantitative data with the help of Statistical Package for the Social Sciences and content analysis for qualitative data. The study found that most of the respondents indicated that they were helped to get new customers to a small extent by the county government. Regression analysis showed that market linkages were statistically significant, F(1,289)=110., p<.001 explaining 77.4% of the variance in SME growth. The study concluded that market linkages offered by the county government also significantly affect the growth of SMEs in Laikipia East Sub-County, Kenya. It was recommended that county governments ought to assist SMEs in marketing their products & services. Training programs in conjunction with institutions of higher learning on marketing and digital marketing strategies can enhance SMEs' capabilities in marketing. The findings of this study have significant implications for the Kenya Micro and Small Enterprises Policy. The significant role of market linkages in SME growth indicates a need for the policy to enhance strategies that facilitate market access.