SMEs are regarded as engines for economic growth globally. SMEs must be supported to thrive and grow in an environment of harsh completion and regulatory regime. SME growth is an organizational outcome of how resources, capability and routines specific to a firm are applied to achieve returns on investments, while taking into consideration competition and market dynamics. Of fundamental importance for SME growth strategies and development initiatives is the ability of policy frameworks to provide a conducive environment for SMEs to thrive. Unfortunately, these milestones are still a mirage in Somalia to date, due in part to economic and institutional dynamics.
This research intends to examine the factors that could impact SMEs business growth strategies and development initiatives in the context of economic and institutional dynamics in Somalia, and to develop a prescriptive model of the critical factors required to increase SMEs profitability and contribution to the growth of the Somalia economy. The main research question is What are the characteristics of a Somali institutional and economic framework that more adequately addresses the underlying requirements for SMEs strategic growth and development?
The study will employ the mixed research methodology supported by triangulation. This will be accomplished through a meta-analysis, content and secondary data analysis as well as a field study. Primary data will be collected from 3000 randomly chosen establishments across Somalia and key informants purposively selected. Qualitative data will be analysed through hand tabulation method and concept mapping and coding techniques. Quantitative data will be analysed through a meta-analysis regression and Ordinary Least Squares (OLS) Regression in order to establish the relationship between the predictor and the dependent variables in the