| dc.description.abstract | The informal sector has been in existence globally for as long can be remembered.
However, micro and small enterprises in this sector have experienced numerous problems
in Kenya in the last decade. Key to these problems is the inability of these enterprises to
grow vertically at the expected rate. Although these problems can be attributed to the
economic slump experienced during the period in question, there was a need to establish
the causes of these down-turn trend. This research was carried out to establish the causes
of this phenomenon.
The main objectives of this research were to establish how technological advancement
influences growth of micro enterprises. Another objective was to determine how
marketing strategies can enhance potentiality of growth of motor-vehicle micro
enterprises. Besides these, the study examined the influence of regulatory policies on the
functioning and expansion of micro enterprises. Finally, the study determined the role
that social organizations (Jua Kali Associations) in enhancing enterprise growth.
The research is a case study carried out on a cluster of entrepreneurs in Ziwani who are
involved in motor-vehicle enterprises.
The research design used is a systematic random sampling. In this design, every Kth
respondent was selected after randomly selecting a number between one and four. The
Kth number was arrived at by calculating the sampling interval as follows;
K =Population size = 795 = 13 Sample size 60
A sampling frame was used in the selection process. After selecting the first respondent
randomly, every thirteenth respondent was selected from the population frame of 795
until the required number of 60 respondents was obtained.
After a careful analysis of the data collected summary findings were as follows. The
level of education acquired by the majority of respondents (43)or72% of them is primary
education. This has hampered technological transfer to this sector because they do not
possess the capacity to adapt to the latest technology. Other factors were experience in
business, income and acquisition of tools and equipment, which were directly related to
technological acquisition. With regard to access to markets, 37 respondents who form
62% of those interviewed admitted that they make no effort to advertise their products
but just wait for their customers. This has also retarded growth. Considering the legal and
regulatory framework, the study established that 53 respondents or 88% did not pay for
business licenses. They cited the reason as being the high costs of acquiring licenses
from the local authorities. Associations play a pivotal role in enhancing the growth of
enterprises. 38 or 63% of those interviewed agreed that they actively participated in
association matters. This participation directly influenced development of their
enterprises. The study recommends that entrepreneurs in the motor-vehicle industry especially at
Ziwani should improve their mode of practice if they are to grow at all. They must get
further training in skill enhancement so that they can be able to adapt the latest
technology which will enable them to advance.
The government should also create a favorable environment that will enable micro and
small enterprises to develop. This can be done by formulating policies that are supportive
to the expansion of the enterprises. Key to these are the policies relating to rules and
regulations which have been too stringent for many years.
Further research on other factors that retard growth of enterprises can be carried out by
other researchers. The factors that this study took into account are just a few out of the
numerous that affect enterprises adversely. Cost of raw materials proper operating sheds
are factors that could be studied. | en |
