Financial characteristics transforming financial performance of SMEs in Africa

This current study aimed to bring in a better and elaborate clarification and understanding on financial performance of SME’s in Africa and Kenya being a case study with more interest on financial characteristics that are contributing to better financial performance of the SMEs in Africa. The current study developed a few and common financial characteristics for robustness purposes. World Bank’s data base was used identify key data for better analysis. The current study examined the financial characteristics that have transformed and will further transform financial performance of SMEs in Africa. The study found out that transformation of financial performance in Africa is influenced mainly by ownership structure, regulations, size of the organization and experience of the top management, the finding of this study therefore have important implications for policy in SMEs existing in African countries.