Interest in the role of micro, small and medium-sized enterprises (MSMEs) in the
countries development process continues to be in the forefront of policy debates in
developing countries. Wajir County is one of the poorest regions of Kenya with a
poverty rate of 84 percent. The region suffers from low household wealth, high
unemployment, insecurity and perennial droughts. Wajir County hosts MSMEs that
could help uplift the region and improve the condition of the inhabitants. Despite this,
MSMEs in Wajir face a number of factors that hinder their growth and survival. This
study sought to establish the factors hindering the growth of MSME’s in Wajir County.
The specific research objectives were; to determine the characteristics of entrepreneur,
the environmental factors and organizational factors that influence growth of MSMEs
in Wajir County.
The study employed a descriptive survey design and factor analysis in studying one
hundred and ten MSMEs that were sampled using stratified random sampling
technique. The instrument used in data collection was a questionnaire. The descriptive
analysis shows that the entrepreneurial demographic profile and number of employees
and gender of employees that a firm has affect the growth of the business. Factor
analysis, grouped the factors into three; namely individual factors, environmental
factors, and organizational factors. The study found that for positive drivers of growth
the organizational factor was the most important, while the individual factor was the
most important for negative drivers of growth. The study makes managerial and policy
recommendations to the businesses, the Wajir County Government and the
Government of Kenya on alternative courses of action.