The main objective of this study was to establish factors influencing business growth of smallholder dairy farming enterprises in Imenti South district of Meru County,Kenya. The specific objectives were to establish the influence of capital, farmer's business management skills., farmer's entrepreneurial characteristics and extension support services on the growth of dairy farming business in Imenti south district. The problem being addressed by the study is that many households involved in livestock production have continued to be poor and food insecure although at the national level the production of livestock and livestock products has increased over the years. This is suspected to be a result of poor performance of dairy businesses caused by poor business growth. The study used descriptive research design which involved carrying out a survey using questionnaires. The study had a target population of 5993 farmers selling milk through cooperative societies or milk marketing groups in Imenti South District. The sample size was 190 dairy farmers randomly selected using systematic proportionate random sampling technique. Data from the survey was analyzed using SPSS and cross tabulation and correlation analysis was used to establish relationships and influence. The study established that business management skills influence growth of dairy enterprises and that interaction with extension service providers positively impacted on the earnings of the dairy farmers.Further it has been established that the size of the dairy businesses are not directly related to age of the enterprises implying stagnation of the older enterprises as this finding is not consistent with business growth models for small and medium enterprises.