<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Sub-Saharan African countries are among the poorest countries in the world and there is a need to develop their economies. Researchers suggest the promotion of small and medium-sized enterprises (SMEs) to foster economic development in countries. Internationalisation has been proved to be a key strategy for SME growth. This study investigates the effect of internationalisation on manufacturing SME growth in Kenya. Kenya is a developing country and the leading economy in the East African community. Using data from the World Bank enterprise survey, a sample of 94 SMEs operating in Kenya between 2013 and 2018 was selected. Multiple linear regression analysis using ordinary least square (OLS) was applied and the results revealed that internationalisation through direct exports contributed positively to the growth of manufacturing SMEs in Kenya. The findings of the study suggest that policy makers should promote internationalisation of SMEs in Kenya to improve the doing business environment in general and remove external barriers to internationalisation of SMEs at the national and international level in particular.</p></abstract>

Sub-Saharan African countries are among the poorest countries in the world and there is a need to develop their economies. Researchers suggest the promotion of small and medium-sized enterprises (SMEs) to foster economic development in countries. Internationalisation has been proved to be a key strategy for SME growth. This study investigates the effect of internationalisation on manufacturing SME growth in Kenya. Kenya is a developing country and the leading economy in the East African community. Using data from the World Bank enterprise survey, a sample of 94 SMEs operating in Kenya between 2013 and 2018 was selected. Multiple linear regression analysis using ordinary least square (OLS) was applied and the results revealed that internationalisation through direct exports contributed positively to the growth of manufacturing SMEs in Kenya. The findings of the study suggest that policy makers should promote internationalisation of SMEs in Kenya to improve the doing business environment in general and remove external barriers to internationalisation of SMEs at the national and international level in particular.

Contribution of Internationalisation to SME Growth: Evidence from the Kenyan Manufacturing Sector

Economics and Business

This work is licensed under the Creative Commons Attribution 4.0 International License.

Sub-Saharan African countries are among the poorest countries in the world and there is a need to develop their economies. Researchers suggest the promotion of...

Contribution of Internationalisation to SME Growth: Evidence from the Kenyan Manufacturing Sector

Published Online: Dec 09, 2020

Page range: 261 - 272

DOI: https://doi.org/10.2478/eb-2020-0017

Keywords
Internationalisation, SMEs, Growth, OLS, Exports

© 2020 Kulondwa Safari, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Contribution of Internationalisation to SME Growth: Evidence from the Kenyan Manufacturing Sector

Published Online: Dec 09, 2020

Page range: 261 - 272

DOI: https://doi.org/10.2478/eb-2020-0017

KeywordsInternationalisation, SMEs, Growth, OLS, Exports

© 2020 Kulondwa Safari, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Internationalisation, SMEs, Growth, OLS, Exports