Enterprise based training (EBT) and enterprise growth, productivity and innovativeness among manufacturing firms in Nairobi

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Publication Date: 
01 January 2008
Author: 
George Mbugua
UN Millennium Development Goal: 
Eradicate extreme poverty and hunger
Related group: 

This paper highlights some of the findings of a study carried out by the author on the relationship between enterprise based training and enterprise growth, productivity and enterprise innovativeness among manufacturing firms in Nairobi. The study investigated as to whether the Directorate of Industrial Training (DIT) supported industrial training has contributed to improved enterprise performance among participating enterprises relative to the nonparticipating enterprises. It also investigated the constraints encountered by industrial training delivery and has proposed appropriate interventions so as to enhance industrial training delivery in line with the legal mandate and the demands of the national aspirations of industrialization.

The study focused on 168 manufacturing enterprises in the Nairobi area which accommodates 74 percent of the manufacturing activity on the Kenya Association of Manufacturers (KAM) countrywide list. 80 manufacturing enterprises were randomly selected from the DIT list of enterprises that trained in the years 2002 to 2004 year period, while 88 nontraining enterprises were randomly selected from among enterprises in Nairobi and on the KAM list but did not train with the support of DIT during the same period. The survey utilized three surveys and used three questionnaires. The investigation established that there were high levels of EBT among both training and non-training enterprises although the incidence of EBT was higher among the training enterprises. The study also established that considerable correlation between EBT and enterprise growth, enterprise productivity and enterprise innovativeness and hence recommended that Industrial training be used to fight poverty and under-development in addition to being used as an instrument for industrialization.