International Journal of Social Science and Business (IJSSB)

This study examines the relationship between strategic networking on financial performance and small and medium enterprises in Uasin Gishu County. This study was guided by the following research questions: what is the relationship between networking intensity and financial performance? How does networking strength relate with financial performance? Does networking proactivity have relationship with financial performance? And what is the relationship between networking and financial performance? The study was guided by Theory of strategic network and social capital Theory. This study adopted a correlation research design. The population of study comprised of 2053 SMEs found in Eldoret Town. Questionnaires were used to obtain the primary data, and document analysis and interview schedules for secondary. Cronbach’s alpha was used to determine reliability. The data was analyzed using descriptive (mean, standard deviation). The t test, was used to determine whether the means of two groups are statistically different from one another; analysis of variance, was used to determine if there was significant difference among the means of three or more groups; and chi square, was used to compare group frequencies, or to see if an event occurs more frequently in one group than another. The findings of indicated that networking intensity, strength networking proactive networking and networking diversity have a positive and significant effect on the financial performance of SMEs. Therefore the study recommends SME managers need to actively engage in networking within and outside of existing networks and especially with those that are relevant to the business