Government Business Advisory Strategies and SME Performance: Evidence from Kenya’s South Rift Region

Abstract

Abstract Small and medium enterprises (SMEs) play a crucial role in job creation and economic development, yet many continue to struggle with structural constraints. This study investigates the influence of government business advisory strategies—such as training, mentorship, and regulatory guidance—on the performance of SMEs in Kenya’s South Rift Region. Drawing on data from 229 SMEs certified by the Kenya Bureau of Standards, the study employs a resource-based theoretical framework and correlational design. Descriptive results reveal a generally neutral perception of advisory service availability, while regression analysis confirms a statistically significant relationship between advisory strategies and SME performance (B = 0.245, p < 0.001), explaining 46.8% of performance variation. The findings emphasize the need for better-designed, more accessible advisory programs tailored to regional dynamics. Recommendations include leveraging expert networks and digital tools to enhance government-led support for SME growth and innovation.