Influence of Focus Strategy on Performance of Small and Microenterprises (SMES) in Machakos Town, Machakos County, Kenya
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Date
2022-03Author
Njoroge, Reuben Kimani
Arasa, Robert
Nganu, Margaret
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The objective of this study was to establish the influence of focus strategy on performance of small
and micro-enterprises (SMEs) in Machakos Town.The study employed a mixed research design where were
both quantitative and qualitative data was collected and used. The target population consisted of all the 40
electronics outlets obtained from Machakos county Single Business Permit licensing office and which are
operating within Machakos town and environs. The study employed a total population census sampling
technique. The census sampling approach was adopted on the total population of 40 electronics retail shops
in Machakos town The choice of census sampling approach was guided by various reasons including; need to
increase the accuracy of results and easy accessibility of population elements. The study used questioners to
collect primary data. Questionnaires are effective tools used to collect data from available respondents who
are willing to co-operate. The study conducted a multiple regression analysis to establish the nature and
magnitude of the relationship between the competitive strategies and performance of SMEs in Machakos town.
The multiple regression analysis helped pick weight that the independent variables (competitive strategies)
had on dependent variable (SMEs performance). The study revealed that SMEs which adopt focus strategies
concentrate on particular niche markets and, understand the dynamics of that market and the unique needs of
their customers then develop uniquely low-cost or well-specified products for the said market. Unique
customer’s service offered by SMEs in their market results to a strong brand loyalty amongst their customers.
Recommendations: The study recommends while adopting a narrow focus, that the SMEs ideally need to focus
on a few target markets also called a segmentation strategy or niche strategy. These should be distinct market
segments with specialized needs.