Training and Development on Performance of Small and Medium Enterprises in Kisumu County, Kenya

Abstract

The increasing interest in training and development is due to the assumption that employees and the way they are managed are critical to the success of a firm. The increasing pressures from the rapid changes occurring in the business environment have led to a variety of responses among organizations. Training and development is therefore emerging as a proactive way of reducing such pressures. This study intends to investigate the influence of training and development on the performance of SMEs in Kisumu County. SMES are emerging as a reliable alternative to poverty alleviation. This sector remains a major revenue earner to the government and a source of employment to many people. However, SMEs in Kenya and in Kisumu County in particular, face peculiar challenges that affect their performance and limit their capacity to contribute effectively to sustainable development. They lack effective performance standards, Training and development that do not support appropriately skilled personnel. The study investigated the influence of training and development, on employee performance in SMEs in Kisumu. The ecological theory of small business growth and development was used to guide the study. The study was conducted in SMEs in Kisumu County using cross sectional survey research design, on a target population of 777 and a sample of 260 clustered randomly selected SMEs, which represent 30% of the target population. Data was collected using structured, semi structured, Likert scale questionnaire and focus group discussion techniques. Data was analyzed using percentages and multiple regression techniques, reported using tables, charts, graphs and figures. The finding of the study showed that the performance of an SME is associated with the status of training and development and that the better the status of training and development in an SME, the higher the performance of the SME.