assesment on the effect of business environment

7/31/2019 Assesment on the Effect of Business Environment

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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.

vi

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.

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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

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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

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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%


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


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


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


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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16

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


8. Does lack of training affect the growth of small and micro enterprises?

Agree Disagree


9.The problem of access to capital is a challenge in the enterprise.

Agree 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


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


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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

assesment on the effect of business environment

Documents