Effects of Infrastructure on Business Enterprise Growth: A Case Study of Banks in Eastleigh
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Date
2013-05
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School of Business and Economics, Daystar University
Abstract
The study focused on the state of infrastructure dating back ten year in relation growth of banking institutions in Eastleigh. The study sampled 6 commercial banks out of the 25 banking institutions in Kamukunji. Historical information regarding business growth over the last ten years was obtained from the City Council of Nairobi (CCN) and the banks that were sampled. Using panel data modelling, the parameters that determine business growth together with those that determine state of infrastructure were analysed to determine their effects on growth of sampled banks. A key value added to this study was the aspect of security and how it affected business growth in view of the security concerns raised about Eastleigh between 2010 and 2012. The outcome of the study was that there was observable growth in the number of employees, which was the measure of growth for this study and also the number of transaction performed by the banks exhibited growth over time. However, panel data modelling did not yield significant results to confidently conclude on the effects of security or infrastructure on growth of banks in Eastleigh. This was mainly due to the inadequacy of the data collected from the city council engineering department, feedback effect of insecurity, inadequate reporting on condition of the roads and high correlation between the explanatory variables, the individual specific effects and the standard error. However, age of the bank and the annual transactions were statistically significant and positively correlated to the number of employees. I recommend that future studies using incorporate other determinants of business growth in the regression model, consider the uniqueness of the firms in order to get more robust analysis.
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Thesis
Keywords
Effects of, Infrastructure, Business Enterprise Growth, Banks, Eastleigh
Citation
Munyi, Zacheaus (2013). Effects of Infrastructure on Business Enterprise Growth: A Case Study of Banks in Eastleigh. School of Business and Economics, Daystar University: Thesis