Abstract:
This article discusses the back ground information regarding youth enterprises, global trends on SMES competitiveness as well as regional trends on SMES competitiveness with a key focus on collaborative networks. The research objectives are the effects of collaborative networks, innovation, product diversification and entrepreneurial skills on competitive advantage of youth enterprises; This article narrows to collaborative net works. Conceptual framework focuses on both independent and dependent variables, independent variables namely; collaborative networks, innovation, product diversification and entrepreneurial skills; dependent variable namely competitive advantage. The purpose of this article is: to unite and to expand the existing cognitions about the concept of collaborative networks; propose the universal model for the process of transformation of implementing this concept. The instruments for data collection were the questionnaire directly administered by the researcher. A sample of 220 respondents was drawn from five different Sub- counties which makes Murang’a County. The cluster and purposive sampling methods were employed. Data was analyzed using inferential statistics using Statistical package for Social Science. The Cronbach Alpha statistical tool was used to establish reliability with a coefficient of 0.653.The findings indicated that collaborative networks had a positive significant effect on competitive advantage of youth enterprises in Kenya. The study recommends that collaborative networks is a key player in establishing competitive advantage; the government through youth funds must strengthen and structure clear collaborative networks among youth enterprises with similar business activity to raise their competitive advantage.