Influence influence of politics on growth of small and medium enterprises in Kibuye market, Kenya

The study sought to investigate the influence of politics on growth of small and medium enterprises in Kibuye market of Kisumu city, Kenya. The statement of the problem was that SME’s within Kibuye market operate on small and temporary structures with poor sanitation and inadequate infrastructural facilities hence the study focussed on political factors on planning of SME’s operation structures in Kibuye market, roles of political leaders on the growth of SME’s in Kibuye market, legislation laws governing the growth of SME’s and strategic plans on growth of SME’s. The objectives were studied using the following research questions: what are the political factors determining the planning and operation of SME’s structures? What are the roles of political leaders on the growth of SME’s? What are the effects of Government policies on growth of SME’s? What are the effects of legislation laws on growth of SME’s? What are the effects of Government policies on growth of SME’s and how does Government strategic plan promote growth of SME's? The target population was 1700 and the methodology of sampling respondents was simple random sampling and key informants identified by purposive sampling which included market / administrators, area councillor and Deputy Town Clerk. The sample size selection table by (Krejcie and Morgan 1970) was used to establish a sample size of 313. The study was conducted by descriptive survey and instruments administered were questionnaires to SME respondents and interviews to key informants. Demographic characteristics found out that majority of SME’s who participated in trade activities came from outside Kisumu district yet they were managed by majority administrators from within Kisumu district. SME's activities were undertaken by the majority female gender as compared to the male gender as was also identified that 84.5% SME activities was undertaken by youthful bracket of age 35 and below. It was also discovered that more than half of the population of SME’s were having primary level of education as compared with 42.6% of those with secondary, tertiary and university education. Other findings indicated that financial support was Key in political leadership, SME’s growth depended on effective political management, involvement of stakeholder in formulation and implementation of laws was vital for growth, political leaders role was key to development of SME's activities and political unrest to a large extent negatively impacted on growth of SME’s. The study concluded that majority of SME’s in Kibuye market were managed by administrators within the district also they were not involved to a larger extent in formulation of by - laws. It was also concluded that political leadership was key in the development of the market although political leadership interfered with the technical activity implementation. Furthermore, the study concluded that by laws existed governing operation of SME’s activities although there was need for increased involvement of stakeholders in formulating and implementing laws. Further studies concluded that political unrest impacted negatively on SME’s growth thus need to address properly the existing laws and policies, infrastructural facilities and management structures. The recommendations of the study were need to increase involvement of stakeholder participation in policy making, involvement of technical management of SME’s activities, increased financial allocations, improved infrastructural facilities and partnership with NGO’s. Suggestions made for further studies were; factors influencing poor participation of youths in SME activities, challenges facing low literate SME s in managing business activities, challenges hindering equitable distribution of resources for SME development and effects of modern technology on growth of SME’s