Abstract:
Small and medium-sized enterprises (SMEs) play a vital role in worldwide economic growth, making it essential to consider how to support their long-term success. If SMEs fail to adapt to market changes, they risk failing to grow or even facing closure. Globalization has opened new doors for SMEs, but to capitalize on them, they need sound competitive plans. In Kenya, despite lots of initiatives from both the government and private sector to boost SME growth, the results have been less than ideal. One possible reason is the under adoption of competitive plans like cost leadership, differentiation, focus, and operational swiftness. This study assessed the impact of these competitive plans on the performance of SMEs in West Pokot Sub-County, Kenya. The study was grounded in Stakeholder Theory and Porter's Generic Strategies Model. Data was gathered via a survey of 366 SMEs, with a final sample of 272 selected through stratified and random sampling approaches. Questionnaires, pre-tested in Trans Nzoia County for accuracy, were used to collect data. The data was examined using Pearson correlation, ANOVA, and simple linear regression. The study shows that cost leadership, focus, swiftness, and differentiation all positively influence SME performance. The research ends by noting that SMEs adopting these plans together can see increased profits, enhanced service, and greater market share. It advises SME owners to implement adaptable plans that evolve with the business environment, which will assist them in remaining competitive and achieving lasting success. These results offer actionable advice for business owners, government officials, and development bodies looking to enable SMEs to boost Kenya's economic progress and contribute to Sustainable Development Goals.
