Micro and small enterprises (MSEs) are appreciated wholly as agencies of economic growth.
The function of management skills, infrastructure, finance, institutional, macro environmental
factors, legal and governance framework have been observed as significant elements for the
operation of MSEs. Moreover, despite government and stakeholder support in boosting the
capacity of MSEs, they have performed under expectations. This study chose to evaluate the
components affecting the good running of MSEs in Kenya. The study was performed in
Nairobi, Kenya. Primary data was acquired by aid of focus groups consultations and
interviews among 130 MSEs who were sampled randomly. Data was proven by descriptive
statisticsusing compound annual growth rate (CAGR) and average annual growth rate
(AAGR). Growth rate (GR) of unemployment has been stimulus towards the desire for
establishing MSEs in Kenya. Improper financing, shoddy planning, inadequate training
facilities, poor infrastructure, limited savings, deficiency of adequate management prowess
and improper legal and political linkages have been denoted as critical constraints of MSEs in
Kenya. The study prompts financial institutions to improve lending terms. Managers of MSEs
should acquire appropriate management skills, adhere to proper planning, hold enough equity
and act within the recommended legal framework.