The Strategic Kenyan Business Selection Tool for Msmes

International Journal of Business and Management Tomorrow

Vol. 2 No. 12

The Strategic Kenyan Business Selection Tool for MSMEs
Anwar Hood Ahmed*, Assistant Lecturer, Mombasa Polytechnic University College Henry M. Bwisa, Professor of Entrepreneurship, Jomo Kenyatta University of Agriculture & Technology Romanus O. Otieno, Deputy Vice-Chancellor (Academic Affairs) and Professor of Statistics, Jomo Kenyatta University of Agriculture & Technology

Abstract
Strategic investors are faced with a dilemma of selecting a business type that suits their profile within the MSMEs sector in Kenya. The business selection problem can be modeled using the multi-criteria decision analysis (MCDA) technique with inherent families of models (WSM, WPM and AHP) that have similar data structure. In this paper, we present our online tool and discuss the underlying conceptual framework. Proof of concept is made through hypothesis test using frequency distribution (qualitative), intra-class correlation and Spearman rank correlation approximated to normal distribution. The results on the tests indicate a promising future for the tool. Keywords: Multi-Criteria Decision Analysis; Business Selection; MSMEs; Jua Kali Sector.

1. Introduction
We extend the idea advanced by Ahmed, Bwisa and Otieno (2012a) on the business selection tool using multicriteria decision analysis (MCDA). Specifically, the idea is applied to the Kenyan scenario covering the MSMEs sector of the economy. The online tool targets a single investor who needs to select an MSME business type. The research has the following objectives: (1) To document any existing business selection models in Kenya (2) To rate their efficiency and effectiveness (or to identify their shortcomings) (3) To design a suitable Kenyan business ranking model with the following specific objectives: a. Present a new model using MCDA techniques that will prioritize business opportunities. ISSN: 2249-9962 December|2012 www.ijbmt.com Page | 1

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