The Micro Small and Medium Enterprises (MSMEs) are important for every nation’s economic development. They provide employment and spur the growth of multiple sectors in the economy. The Covid-19 pandemic has negatively affected MSMEs' performance. The study seeks to demonstrate why COVID 19 may lead to the terminal quarantining of MSMEs. The study is anchored on decision usefulness and information asymmetry theories. The study adopted a descriptive research methodology and sampled MSMEs within Nairobi City County. The study used SPSS to analyze data in addition to Microsoft excel. The study found that over 70% of MSMEs had their sales decline by over 65% while 95% of them had their sales decline by over 30%. The study found that about 68% of MSMEs lacked financial management skills. The study recommends that with legal and institutional reforms, the government needs to develop a financing framework for MSMEs.
Stock prices in Kenya have been experiencing drastic volatility over the years. In the year 2015 alone, the value of the listed companies shrunk by about 2.5 billion USD, representing about 25% of the national government annual budget. The performance of the stock market is an important proxy of a country’s economic environment. Rational investors constantly value and revise their portfolio composition so as to maximize their wealth. Whereas effectively diversified portfolio minimizes the unsystematic risk, systematic risks cannot be managed by simple diversification. Investors, therefore, need to understand the effect of these systematic risks on the stock performance. The study sought to determine the relationship between systematic risk factors using Inflation and interest rates and the performance of the stock market in Kenya. The study adopted a positivist philosophy and employed a correlation research design. The study targeted all the stock listed in the Nairobi Securities exchange. The study was underpinned by the Efficient Market Hypothesis, Arbitrage Pricing theory, and used integration analysis to establish the relationships between the variables of the study. The study found a significant long-run positive relationship between interest rate, inflation, and performance of the stock market in Kenya. Investment firms, the financial analyst should use past data on 91 Treasury bills rate and Inflation, to predict the future performance of stock exchange for the benefit of investors.
Digital transformations are transforming the economy and society in East Africa, and entrepreneurs need to leverage on these digital transformations to ensure the sustainability of their businesses. This chapter therefore seeks to examine the role of digital transformation on sustainability of entrepreneurship for the underserved communities in East Africa. The chapter adopts an interdisciplinary and pragmatic world view. There exist many challenges in East Africa which stifle the progress of digital adoption. For East African countries to exploit the potential of technology, they must develop the foundational building block of digital economy. Digital innovation contributes to the development of an ecosystem that revitalizes the digital economy by supporting new technology-based products and businesses. East African countries should ensure that the underserved communities receive basic education, strengthen, and integrate a multi-sectoral approach towards a regional digital and legal policy framework in order to encourage innovation and e-business.
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