Analysis of Procurement Practices and Growth of Selected Small and Medium-Sized Enterprises in Imenti North Sub-County Meru, Kenya
Mutunga, Winnie Kathure
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The thrive of the economy of Kenya beyond the minimal ten percent threshold annual target of vision 2030 goals, depends on the drive to have as many small and medium-sized enterprises as possible. Small and medium-sized enterprises are a dynamic force for sustained economic growth and job creation. They stimulate private ownership and entrepreneurial skills; and they are flexible and can adapt quickly to changing market demand and supply conditions. However, there is low growth of small and medium-sized enterprises. This study analysed procurement practices and growth of small and medium-sized enterprises in Imenti North sub-county Meru, Kenya.The objectives of the study were to evaluate the influence of procurement stock sourcing, negotiations, bidding and inventory control on growth of small and medium-sized enterprises in Imenti north sub-county Meru, Kenya. The study was informed by two theories; resource-based view theory and game theory. Resource based view theory informed investigation of variables such as procurement stock sourcing and inventory control management while Game theory informed the procurement negotiations and procurement bidding constructs of this study. Descriptive survey research design was adopted in the study. The target population was ten sampled SMEs in Imenti North Sub-County that were in manufacturing sector. Closed-ended questionnaires were completed by 50 head of departments from sales and marketing, operations, compliance, finance and procurement. Pre-testing of questionnaire was conducted in KTDA in Igembe central sub-county in Meru County. The main data was collected, cleaned and coded using SPSS software version 25. Data was analysed and hypotheses were tested using regression analysis, descriptive statistics such as mean, percentage, frequency and standard deviation, and finally data presented using tables. The findings indicated that stock sourcing, procurement negotiation, and inventory control positively and statistically significantly influenced the growth of small and medium-sized enterprises in Imenti North Sub-County Meru, Kenya. However, bidding negatively and statistically significantly influenced the growth of small and medium-sized enterprises in Imenti North Sub-County Meru, Kenya. The study recommended that SMEs should hedge to protect themselves from any abrupt price risks through forward linkages and integration.