INFLUENCE OF INNOVATION ON SMALL AND MEDIUM ENTERPRISE (SME) GROWTH: A CASE OF GARMENT MANUFACTURING INDUSTRIES IN NAKURU COUNTY

Innovation is paramount to the survival and growth of any business. It has changed the way companies conduct business and the way both customers and clients acquire goods and services. The textile industry was one of the key sub-sectors targeted under the country’s strategy for economic recovery (Republic of Kenya, 2003). This study probed the influence of technological, product and process innovations on growth of garment manufacturing industries in Nakuru. Stratified random sampling and purposive sampling techniques were employed in deriving the study sample. Data was collected using structured questionnaires and analyzed using descriptive statistics with the aid of Statistical Packages for Social Scientist (SPSS 20). This study was able to establish a strong link between innovation and growth of businesses and recommends that the Kenyan government should establish close links with SMEs in the garment manufacturing industries to encourage innovative strategies that will enable the sector to expand