EFFECT OF MENTORSHIP ON GROWTH OF SMALL AND MEDIUM ENTERPRISES IN KENYA: A CASE OF KILIMO CONSUMERS COOPERATIVE SOCIETY

Abstract

Small and Medium Enterprises (SMEs) play a crucial role in the Kenyan economy accounting for a significant proportion of economic activities in Kenya’s urban and rural areas; generating over 70% of all new jobs annually. However, the SMEs are also facing a high failure rate as over 60% of SMEs are estimated to fail each year. Studies indicate a positive relationship between mentorship programme and growth of SMEs. In Kenya, various programmes have been put in place to offer mentorship to SMEs but despite these, the failure rate among SMEs in Kenya is still high. The current study hence sought to establish effect of mentorship programmes on growth of SMES in Kenya with a focus on Kilimo consumers cooperative society by focusing on entrepreneurial training, exposure tours, marketing linkages and counselling (Psychological mentorship).The study target population includes 532 members of Kilimo consumers cooperative society, and the unit of observation was members operating business within Nairobi and its environs. A multiple linear regression analysis model was used to test and link the variables. The study findings were presented in form of tables, charts and graphs. The study findings indicated a positive and significant effect of all the independent variables on growth of SMEs. The study concludes that Kilimo SACCO and other SMEs should aim to improve on their mentorship programmes involving  entrepreneurial training for instance consultation from incubators to train the employees, welcoming professional mentors frequently to train the employees, conducting one on one training by the organization’s employees, organizing seminars participation and investing resources in staff training.