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AN ASSESSMENT OF THE EFFECT OF BUSSINESS ENVIRONMENT ON THE
GROWTH OF SMALL AND MICROENTEPRISES
CHAPTER ONE1.0 INTRODUCTION.........1
1.1Research Background.........1
1.2Research Problem Statement..........1
1.3Research Objectives...............21.4Research Questions.................2
1.5Significance of Study..........2
1.6Research Scope.......31.7Definition of Key Terms.........3
CHAPTER TWO
2.0 LITERETURE REVIEW2.1 INTRODUCTION.....4
2.2 Theoretical Orientation......4
2.2.1 Capability Theory...42.2.2 Behavioral Theory......4
2.2.3 Dependence Theory........4
2.3 Empirical Review..52.3.1 Research Gaps....5
2.4. Conceptualization...6
2.4.1 Conceptual Framework..72.5 Operationalization...7
2.5.1 Operational Framework..7
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 INTRODUCTION.8
3.2 Research Design ...83.3 Study Population....8
3.4 Sampling Design....8
3.4.1 Sampling Techniques..............93.5 Data Collection..........................................9
3.5.1Data Collection....................9
3.6 Data Analysis and Reporting.93.7 Ethical Issues.........9
3.8 Limitation of Study....9
iv
CHAPTER FOUR
4.0 DATA PRESENTATION ANALYSIS AND INTERPRETATION4.1 INTRODUCTION.........11
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CHAPTER FIVE
5.0 Findings, conclusion and recommendation.
5.1 Introduction........15
5.2 Summary of findings......155.3 Conclusion......15
5.4 Recommendation for further research....................15
LIST OF ABBREVIATIONSSME: Small and Microenterprises
ETR: Electronic Tax Register
LIST OF TABLES AND CHARTS
Table 3.1 Target Population Table..............................................................................................8
Table 3.2 Sample Size Table.......................................................................................................9Table 4.1 Training Factor Table.................................................................................................11
Table 4.2 Credit Factor Table.....................................................................................................12
Table 4.3 Security Factor Table..................................................................................................13Table 4.4 Government Regulation Table....................................................................................14
Chart 4.1 Training Chart.............................................................................................................12Chart 4.2 Credit Chart.................................................................................................................13
Chart 4.3 Security Chart..............................................................................................................14Chart 4.4 Government Regulation Chart.....................................................................................14
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ABSTRACT
Business environment is concerned with understanding the factors in the environment which influencethe success.
The main objective is to establish the challenges in the business environment affecting the growth of
small enterprises on the activities with a specific reference to Kapsoit Market. These challenges have acritical impact on the activities of small Enterprises and lack effective solutions to manage business
growth challenges. The challenges are government regulations; licensing and high taxes. Access to
credit/capital security, lack of training entrepreneurial literacy.
Questionnaire was the major data collection instrument and was issued to the respondent through the
use of stratified random sampling technique. The data to be collected was analyzed through the use of
quantitative analysis. This will contribute towards the making of summary findings and answeringresearch questions.
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CHAPTER ONE
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INTRODUCTION
RESEARCH BACKGROUND
Business environment is concerned with understanding the factors in the environment which influence
the livelihood of small firms success. Therefore it is a combination of the social, economic and political
factors which influence the growth and operation of an enterprise. Managing the business environmentrequires analyzing the sources of uncertainty which hinder the growth of the enterprise are government
regulations, competition security, financial institutions, access to credit and lack of training.
Entrepreneurs can reduce the environmental uncertainty by adapting and changing actions to fit the
business environment. Also scanning the environment to anticipate changes, finally lobbying to achievefavorable outcomes and small enterprises will adapt to the business environment and thus increase
effectiveness.
Sessional paper no. 2 of (1992) on small microenterprise in Kenya enumerates the need for improvingthe business environment in order to assist the growth of small enterprise sector and for survival. To
survive in a dynamic environment medium enterprise need to have strategies that focus on the
customers and thus the bus sines will have a competitive advantage over others. It is important tounderstand the meaning of small market share, employ few employees (less than 10, uses very basic
technology and have a turnover of less than Kshs 10 million annually.
Since independence in 1963, substantial funds have been spent to implement government policies andprogrammes, and to build institutions aimed at promoting the small enterprise sector. However, results
to date have not been satisfactory due to poor coordination among implementing agencies. In additionmany programmes ave not been based on adequate needs assessment. As a result, much of the growth
of the small enterprise sector has been spontaneous especially among "jua kali" enterprises. The sectorhas reached a stage at which further growth is not possible without strong and effective support from
the government, the business community and the people at large to coordinate. The indication that
enterprises have been able to graduate into the formal sector.The term "Jua Kali" comes from two Swahili words, Jua meaning, sun and Kali for hot. The s all scale
workers in the enterprise working by manufacturing and providing services in open air under the sun
are generally referred to as "Jua Kali", although characterized by absence of premises. (William, 1997)
The history of "Jua Kali" started on a traditional basis in the form of small industries dealing with
blacksmiths. The advent of Asians coming to Kenya marked the gradual sift to home based activities tourbanized enterprises.
However with time they expanded by producing a wide range of products. Today these enterprises are
of potential and benefit to the contribution to the economy in terms of output of goods and services,creation of jobs at relatively low capital among others (republic of Kenya vision 2030).
Kenya's medium enterprises are undergoing drastic changes and challenges of growth. These changes
include competition, time, constraint-multiple roles played by women, limited managementskills and record keeping lack of business knowledge and skills, licenses taxation and other actors in
the business environment which fail to address this may risk the enterprise future success (Ongile
2006).The study found out the effect of the business environment on the growth of small and micro-
enterprises in Kapsoit Market.
1.2 Research Problem Statement
The major objective of having a favorable business environment is to enhance the growth of small and
microenterprises making the entrepreneurs more motivated to conduct business. Many small and1
microenterprises record decline in growth rate despite the efforts by enterprises growth. It has been of
little help since the growth rate of enterprises especially in rural areas is still a problem (Omiti, 2001).
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According to McComick (1996) government regulation fails to enforce delivery and affordable final
services to individuals operating small scale enterprises. The government lacks special regulations thatsupport the growth and development of small and micro-enterprises for example the problem of high
taxes and licensing fee of which they are difficult to company to condition. Capital, access to was
major problem affecting the growth of small scale enterprises. A small andmicroenterprise relies on savings, profit proceeds, as the main source of capital for businesses
expansion.
Credit was also a major problem this is because of stringent collateral requirements, negative attitude
of lending institutions toward small and micro-enterprises borrowers.Security is a major problem affecting the operation of small and micro-enterprises. This is a challenge
because most of them are attacked in the area of operation, conned off their money and it affects the
growth of the business.Training/entrepreneurial literacy is a major problem lack of business management skills, literacy on
long terms, conditions, repayment make it not possible to access funds even when the funds are
available.The challenges in the business environment hinder the development and growth of small-micro
enterprises and failure to address can lead to lack of jobs ovation, income generation, decline in the
growth of the economy (Mullei 1999). The purpose of the study is to identify the gaps of small andmicro-enterprises in Kapsoit Market. In
doing so the study addressed the following research questions. Many of the businesses are affected bythe problems in the business environment which hinder their growth rate.
1.3 Research Objectives General Objectives
The purpose of the study was to assess the effect of business environment on the growth of small
micro-enterprises in Kapsoit market.
Specific Objectives
This was guided by the following objectives:
i.To assess the effect of government regulation on the growth of small and microenterprises
ii.To find out the effect of security on the growth of small and micro-enterprises.iii.To establish the effect of training on the growth of small and Micro-enterprises.
iv.To analyze the effects credit/ capital on the growth of small and microenterprises.
1.4 Research QuestionsIn order to meet the research problem statement, this study answered following researchquestions.
i.How docs government regulation affect the growth of small and micro enterprises?
ii.How does security affect the growth of small and microenterprises?iii.How docs training affect the growth of small and microentrepriseses?
iv.How does access to credit/capital affect the growth of small microenterprises?
1.5 Significance of The Study
The study is of great significance to owners and managers of small and microenterprises because it
helps to know the problems of running the business and provide solutions. Investors become aware of
the risks associated with small enterprises.
The study helps the government economy since small microenterprises contribute to the economicdevelopment of a country. It also helps,to highlight government regulations which support growth and
development of small microenterprises for example high taxes, licensing to be dealt with.
2
The study was helps the unemployed because it provides them a way they can start earning and thus
improves the living standards of the people. The study benefits entrepreneurs to enhance knowledge of
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the ever growing small andmicroenterprises in Kenya and provide the researcher with an insight into
the challenges encountered in the business environment by small enterprises.
The study will be of importance to the researcher as it will be a partial fulfillment of a degree course in
bachelor of business administration specializing in entrepreneurship. The lecturers and students willuse this research for reference and find out other issues in order to come up with conclusive reports.
1.6 Research Scope
The study was confined to small and microenterprises in Kapsoit market. The target population willincluded owners of Jua Kali enterprises, Managers, employees of small scale at Kapsoit market. The
study addressed challenges in the business environment which affect the growth of small and micro-
enterprises.
1.7Definitions of Key Terms
Growth : Refers to increase or develop rapidly
Business Environment : Concerned with understanding the factors in the surrounding influence thelivelihoodof small firms success.
SME: Small institutions that are operated with very little capital, managed with a small market share,
employ few employees ( less than 0) uses basic technologyEntrepreneurs: A person who scans the business environment, identify opportunities and get the
necessary resources to start a business.
Enterprises: An undertaking especially one scope,complication and risk; a business organization.
Policy: Aplan of action adopted by an individual or social group.
Sessional paper: constitutes the government policy on issues; education, environment, gender specific
issues, credit.
Blacksmith:A trades person trained in hoof care and horseshoeing,one that forces and shoes iron
Training: Refers to acquisition of knowledge, skills and competencies as a result of vocational or
practical skills.
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CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
The chapter reviewed the major challenges relating to business environment on growth of small and
micro-enterprises. It provides explanation of theoretical rational problem being studied as well as whatthe research has done and how findings relate.
The chapter explains theoretical orientation, empirical review, research gaps, conceptualization and
ope-rationalization. The literature will be reviewed from journals, published reports and papers.
2.2 Theoretical OrientationThe proposed theories that will be discussed in the study are:
2.2.1 Capability Theory
Lewis, W.A (1954) there are also indicators that small and micro-enterprises complete by meeting newdemands for quality, productivity, reliability, innovation, flexibility and a capacity to adapt to changing
needs. Small enterprises, therefore may have advantages in this regard to various qualitative aspects of
employment are present. This includes for example superior labor relations and opportunities forworker participation, good working and community conditions progressively improving skills and
equipment and the adoption of adequate social protection mechanism. In fact good conditions and a
capacity to meet current competitive needs may be mutually supportive and may provide a basis onwhich small enterprise development can be more effectively positioned.
2.2.2 Behavioral Theories.Douglas North, (1990) understand Institution as the rules of the game within a society, which structure
Individual behavior thereby reducing uncertainty risk and transaction costs connected with eachindividual action. He distinguishes between formal institutional framework to foster entrepreneurship
consist of the fundamental, political, social and legal rules, example of the formal institutions include
the legal framework and financial systems. Informal rules refer to codes of conduct and interpretationof laws and regulations which further regulated economic actions.
2.2.3 Dependence Theory
Berry, A (1996) Dependence theory is a body of social science theories, both from developed and
developing nations that science theories, both from developed and developing nations that create a
world-view which suggests that poor underdeveloped states of the periphery are exploited by wealthdeveloped nations of the center, in order to sustain economic growth and remain wealthy. This theorystates that poverty of the countries in the periphery is the result of how they are integrated into the
world system, whereas free market economist argue that they are progressing to full integration. The
theory claims that the theory of comparative advantage breaks down when capital including bothphysical like machines and financial capital is highly mobile as it is under the conditions of
globalization. For this reason, it is claimed that dependency theory can offer new insight into a world of
highly mobile multinational corporations.
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2.2.4 Theoretical Framework
Fig 2.4
Theoretical Framework
Source; Author (2010
2.3 Empirical Review
Kibaki (1996); lack of good infrastructure, including roads, electricity, security, government/policies
hinder the growth of small and microenterprises and are factors that cause a challenge in the businessenvironment.Lisa Donald (2003) small and microenterprise are common in developing countries. Studies estimate
that small enterprises employ 17% of the adult population 605 to 90% of the labor force work in
agriculture majority of these enterprises make their contribution in terms of poverty alleviation growthof the economy, hoping participants move substantially above a poverty line.
A 1995 survey of 11,012 small business enterprises undertaken by KREP and GEMINI project
indicate that overall employment growth in the sector between 1994 and 1995 was 10-12 per Annam.William Cooley in the journal of small business management of 1 st Jan 1997 on small scale enterprises
in Kenya noted that as the business grows and develops additional capital is needed for expansion and
lack of capital/access to credit is a great problem affecting the sector.
According to Arvil vs Adams (1997) training may not achieve its objectives for the training to produceactivities. Not all training of informal sector artisan occur at specific work sites.
In 1994, the Kenyan micro and small enterprise training technology was launched with the objective ofpromoting micro and small enterprise. The conclusion was that 905 subsidy of training provided by the
voucher program had increased the amount of training for Jua Kali employees.
The past studies shows that young microenterpnses are vulnerable to general economic conditions andrarely grow because of the problems they face in the business environment.
2.3.1 Research Gaps
The study identified the gaps that have not been addressed on the effect of business environment on
the growth of small and microenterprises. Many small scale enterprises face problems of access tocredit; banks are not predisposed to lending to small enterprises, the small borrower who lacks
experience with credit institutions . Finally the stringent collateral requirement which poses a
5
challenge to the growth of the enterprise hence difficult to conduct its operations.
Capability Theory
Behavioural Theory
Dependence theory
Growth of small and
microenterprises
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Independent Variable Dependent Variable
Source: Author (2010)
2.5 Operationalisation
To operationalise is to determine how to measure,the operationalization of this study demonstrates the
key factors leading to existence of challenges in business environment and the growth of small scale
enterprise.To asses the impact of financial institutions on the growth of small and microenterprises.
The study measured the effect of access to credit provided by various financial institutions,determined by how small scale owners access credit.
It find out the impact of infrastructural activities i.e. security. The study found out challenges it poses.
2.5.1 Operational Framework
Fig: 1:3
Independent Statistics
7
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
Training
Access to Credit
Government Regulation
Growth of Small and
Micro-entreprises
Security
Growth of small and
micro-enterprises
Infastructural activities
Financial institutions
Trainig
Government Regulation
Security Electricity
Capital Credit Facilities
Business Skills
Education Level
E.T.R Business
License
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3.1 INTRODUCTION
This chapter discuses the research design and methodology of the study; these entails the methods andprocedures that will assist the researcher in identifying the sources of data. The sampling method used,
the sampling design and sample size. It further explains data analysis procedure.
3.2 Research Design
Descriptive research design was applied in the study. The objective of this design was to portray an
accurate profile of person, events or situation. It further seek to establish factors associated with
certain occurrences, outcomes and conditions.According to Mugenda and Mugenda (1999) descriptive statistic are indices that describe a given
sample and relationship. It used survey design as a strategy of collecting and analyzing data in order to
answer questions about the stated problem under investigation. The study accessed the effects ofbusiness environment on the growth of small scale enterprises. Questionnaires were administered to
gather information.
3.3 Study Population
A target population is the total collection of elements which are wishes to make some inference.
Mugenda and Mugenda, (2003) the population under study included owners, managers, employees,
customers of small and micro enterprises at Kapsoit Market.
TABLE 3.1 Target Population
Category Target Population Percentage
Owners 16 20.00%
Managers 20 25.00%
Employees 24 30.00%
Customer 20 25.00%
Total 80 100.00%
Source: Author (2010)
3.4 Sampling Design
Probability sampling design was used where a sample of respondents were chosen for the study usingstratified random sampling procedures. Managers were be selected using census method and the
respondent employees were obtained fromfrom each category of the target population. respondent employees will be obtained from varioussubgroups.50% of respondents were targeted
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3.4.1 Sampling Method Techniques
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The study used probability sampling method where stratified random sampling techniques were used to
select respondents from target population , target population was divided into subgroups andrespondents picked randomly from each. The sample size was as follows
TABLE 3.2 Sample Size
Category Target population Sample size (50% of the
target population)
Owners 16 8
Managers 20 10
Employees 24 12
Customers 20 10
Total 80 40
Source: Author (2010)
3.5 Data Collection
Data collection is gathering information relevant to the research study. The data was gathered through
the use of the following methods.
3.5.1 Data Collection Method Techniques
The study collected data using primary data through a questionnaire. The researcher personallyadministered the questionnaire this is because most people do not like filling the qustionnaiere. Also
people in the sector are too busy and do not have time to sit and fill a questionnaire. It involved
structures and unstructured questions. The data collection instrument was open ended and closed endedquestion.
3.6 Data Analysis and Reporting
Data was analyzed by the use of statistical procedures. Qualitative method involved content analysisand evaluation of text material. Qualitative method will involve/the use of diagrams i.e table charts.
3.7 Ethical Issues.
Every enterprise has its own rules and norms of working hence respect for individual rights and
obligation was the guiding principal while conducting the research.
Consent to make interviews was sought from owners, managers of small and micro-enterprises. The
research disclosed all information concerning the main purpose of the research study to keepall data . The researcher upheld some ethical issues in the process of the study and assure the
respondents that all information volunteered was treated in the highest confidence.
3.8 Limitation of the Study
A number of factors may limit the scope and depth of the study;
time: the researcher lacked enough time to do a thorough research this is because of a number of
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tasks supposed to be done and time was short.
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Openness and honesty of respondents: some respondents are difficult to deal with since they do not
want to disclose their business secrets and fear for security.Resources: the researcher lacked enough funds/ resources to carry out the research activities.
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CHAPTER FOUR
4.0 DATA INTERPRETATION AND FINDINGS
4.1 INTRODUCTION
This chapter deals with analysis and presentation of the data collected using various instrumental
tools through the use of questionnaires.
The questionnaires were formulated to help in the collection of quantitative data. Having receiveddata from previous respondents the findings were presented in tables.
4.2 Purpose of Analysis
The purpose of this study was to find out the effect of business environment on the growth of smalland micro-enterprises. In order to try an improve this sector, thus encouraging people to grow their
business to large enterprises.
4.3 Response Rate
The study involved 40 respondents drawn from those buying the products, those selling , owners,
managers of the enterprises at Kapsoit market.
This shows the effect of training factors on the growth of small and microenterprises.
Table 4.1 Training factor.
Response Frequency Percentage %
Greatly causes
Slightly causes
Does not cause
30
5
5
75.00%
12.5%
12.5%
Total 40 100.00%
Source : Researcher (2010)
From the above analysis, the response indicated that training has really a great effect on the growth
of any business.
Therefore at 75% this means that for any business to grow, the training has to be done in order to
achieve goals and to grow o from one level to the next.
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35
30
25
20
15
10
Greatly Slightly Does not
causes causes causes
Source ; Researcher (2010)
4.4 This shows the effect of quantitative analysis and results credit as a factor affecting growth ofsmall and microenterprises.
Table 4.2 Credit
Response Frequency Percentage
Greatly affects
slightly affects
does not affect
8
12
20
20.00%
30.00%
50.00%
total 40 100.00%
Source; Researcher (2010)
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Chart 4.2: Pie Chart showing the qualitative analysis results credit
. . . . . Greatly affects 20%
Doesn't . . . . . . . Slightly affects 20%
affect 50%v . . . . . . . . . . . x x x x X X X
Does not affect
...... Slightly affects
X X X Greatly affects
Table 4.2 and pie chart 4.2 are concerned that majority of the respondents foundthat credit does not affect the growth of small and medium since these daysentrepreneurs can acquire loans without security one such example is from EquityBank where one only needs to open an account with them and then show the salesreturn and then based on that one qualifies for a loan.
4.5 Effects of security on the growth of small and micro enterprises.
Table 4.3 Security
Response Frequency Percentage %
Low
Medium
High
5
15
20
12.5%
37.5%
50%
Total 40 100.00%
Source: Researcher (2010)
Table 4.3 and chart 4.3 exhibits that majority of the respondents admitted that therate of security was high in the growth of small and micro-enterprises.
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Chart 4.3 showing the effects of security on the growth of small andmicroenterprises
. . . . . Low
. . . . . . . . . . 12.50% High
High . . . . . .
50% x x X X X X X X Medium . Low
x x x X X X X X 37.50%
x x x x x xxx Medium
Source; Researcher (2010)
4.6 Effect of government regulation on the growth of small and micro enterprises
Table 4.4 Government Regulation
Response Frequency Percentage
Greatly causes
slightly
does not cause
25
10
5
62.5%
75%
12.5%
Total 40 100
Source; Researcher (2010)
Table 4.4 is concerned that government regulation have some effects on the growthof small and enterprises and the majority of the respondents exhibit this
Chart 4.4 showing effects of government regulations
Does not
cause x x x x x x x
12.50% x x x x x x xx x
. . . x x x x x x x x xDoes not cause
Slightly . . . . . . . . . . . x x x x x x x x greatly
causes . . . x x x x x x x x x x x x causes. . . . Slightly
25.00% x x x x x x x x x x x x x x
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x x x x x x x x xxxxGreatly causes
Source: Researcher (2010)
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CHAPTER FIVE
5.0 SUMARRY, CONCLUSIONS AND RECOMMENDATION
5.1 INTRODUCTION
This chapter of the research project presents in a prease way the summary and answers to researchquestions, conclusions, recommendations and suggestions for further research. It points out the
factors influencing the growth of small and microenteprises . In Kapsoit market and what
applications of the study can serve to solve these problems.
5.2 Summary
The findings of the research study are as follows: the study revealed that training greatly affected
the growth of small and microenterprises in Kapsoit market. It implied that training is a key tool in
any business growth. This was revealed from the high percentage at 75% of the total sample of 40
people who were questioned.
Another factor to the growth of small and micro enterprises was attributed to government
regulation which was ranked at 62.5% from the analysis that was obtained from the questionnairesthat were assembled.
Security on the hand was perceived to be at the lowest percentage with 50% rating as one of thefactors attributed to growth of small and microenterprises. This is because people were of the
opinion that security can be managed if there is togetherness with other people working at thesame venue.
5.3 Conclusion
There is a proof to suggest that most of the respondents have been involved in small andmicroenterprises somewhere along the way but they have failed to grow. Therefore, by this report,
there could be a clear indicator on what the various parties can do in order to encourage and grow
this sector . The study concluded by asking the government to try and assist this sector byproviding rules and regulations which are favorable.More banks and financial institutions were
encouraged to give more financial support to the sector in order to increase their capital and
expand their business and improve their living standards through the poverty eradication scheme
which was introduced in the country with the help of united nation environment programme(U.N.E.P).
5.4 Recommendation
The government should try to assist by providing regulations which are favorable to be imposed on
small and microenterprises.
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The government should waive taxes so that the small and microenterprises can enjoy doing
business. If encouraged to venture into business and not only to start but to try to sustain it to grow.
15
The government should also waive taxes so that the small and microenterprises can enjoy doing
business. If encouraged to venture into business and not only to start but to try to sustain it to grow.
The government should also open up many centers which can give information to the small andmicroenterprises and also try to inject more capital in enabling the sector to market their products
and services across boarders into other countries.
The sector should try to improve on their product and service quality so that it can attract more
consumers to buy their products and service quality so that it can attract more consumers to buy
their products leading to expansion of markets.
The sector management should try to improve on their management skills or strategies to be able
to capitalize maximize on their resources. They should train their employees so that they are able
to carry on the functions that the business entails. The management should also learn to plan sothat when they roll out their goals and objectives every employee is able to move in the same
direction.
Also the study recommends that the management should try to improve on the working
environment of its staff by providing them with competitive pay, leave days, medical cover. This
helps build the morale of the employees and as such their input will be enhanced.
Finally growth is regarded as essential, the small and microenterprises will be the main engine of
development, government will provide strategic policy and investment support for infrastructure,,service delivery and marketing thus participation will be encouraged.
5.5 Recommendation for Further Research
Due to limited time, resources and inaccessible, data the researcher was not able to come up with aconclusive research findings, but it is advisable to have further research done in this area so that
we can be able to know more about the factors affecting growth of small and microenterprises in
the business environment and how this sector can benefit our fellow upcoming Kenyans to achievethe vision 2030.
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REFERENCES
Government of Kenya (1993) small enterprise and "Jua kali" development in Kenya Sessional
paper no 2 of 1992 Nairobi; Government printer.
Homby A.S (2005) Oxford Advanced learners Dictionary of current English, Seventh Edition,
Oxford University press.
Mullei, A (1996) small enterprise development in developing countries, Oxford university press.
Me commick (1996) The African factor in enterprise structure and performance in Kenya, OxfordUniversity press.
Mugenda and Mugenda (1999( Quantitative and qualitative analysis.
National Baseline survey 1993, 1995). "National micro and small enterprise baseline surveyGemini studies.
Omiti (2000) Micro-evidence on firms and Household held at the center for study of African
Economies, Oxford University press
.Republic of Kenya vision 2030
William Coolcy (1997) small scale manufacturing in Kenya Government printer.
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APPENDIX -1
Questionnaire
NB: Please tick where appropriate
1.Gender: Female Male
2.Age : 21-30yrs 31-40yrs 41-50yrs
3.How long have you been in business?
3 months- 1 yr 1 yr- 2 yrs 2 yrs -3 yrs
I 3 yrs - 5 yrs 5 yrs and above
4.Small and micro-enterprises face challenges in the business environment including security,access credit, capital, lack of training , government regulation. How is the government
performance in creating an enabling environment?
Very good Good Fair Poor
5.The government should seek entrepreneurs opinion before formulating policies to ensure
effectiveness.
Agree Disagree
Strongly Agree Strongly Disagree
6.Are most of the government regulation implementable?
Yes No
7.Currently, most entrepreneurs are challenged by poor infrastructural activities.
Agree Disagree
Strongly Agree Strongly Disagree
8. Does lack of training affect the growth of small and micro enterprises?
Agree Disagree
Strongly Agree Strongly Disagree
9.The problem of access to capital is a challenge in the enterprise.
Agree Disagree
Strongly Agree Strongly Disagree
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10.The government should facilitate an enabling evironment. In your opinion what should the
government do to achieve this? Briefly highlight........................................................
........................................................................................................................................
.........................................................................................................................................
.........................................................................................................................................11.Lack of credit is the most constraining factor to business expectations and contributing to
high percentage of business closure
Agree Disagree
Strongly Agree Strongly Disagree
12.What challenges do you face while obtaining creditor loans from micro finance institutions or
banks? Briefly explain.................................................................................
........................................................................................................................................
13.Do you face challenges while obtaining licenses and permits for your business?
Yes No
14. If yes briefly explain..........................................................................................................
........................................................................................................................................
15. Innovation potential exists in many small enterprises; do you get any assistance to tap and
grow such innovative skills?
Yes No
If yes briefly explain.........................................................................................................
......................................................................................................................................
16.Does the government support you in terms of guidance, counseling, technical and training for
your businesses.
Yes No
If yes briefly explain how
.................................................................................................................................
.................................................................................................................................
17.The government has increased education for both men and women entrepreneurs and has
developed support structures to ensure success for their businesses
-
7/31/2019 Assesment on the Effect of Business Environment
23/23
Agree Strongly Agree
Disagree Strongly disagree
18.Support from the government greatly contribute the development and growth of small and
micro enterprises
Agree Disagree
Strongly Agree Strongly disagree
APPENDIX 11
Work plan
Schedule of Research Activities
Activity Jan 2010 Feb 2010 March 2010 April 2010
Proposal defense
Questionnaire design
Data collection
Data analysis
Writing research
paper
Consultation with
supervisor
Submission of report