| dc.description.abstract | Although entrepreneurship is a growing phenomena that has had significant impact in all economies, it is generally recognized that small scale businesses especially in developing countries such as Kenya face unique challenges which influence their growth and profitability. This ultimately diminishes their ability to contribute effectively to sustainable development. Given the importance of small scale businesses to a nation's economic growth, and also the role that the businesses play in poverty reduction, an understanding of the problems negatively affecting them is a vital step in boosting their growth.
The purpose of this study was to identify the factors influencing the growth of small scale grocery businesses in Kisii Municipality. The objectives of the study were:- to establish the financial factors influencing the growth of small scale grocery businesses, to assess the housing factors influencing the growth of small scale grocery businesses, to explore the legal factors influencing the growth of small scale grocery businesses and to examine the technological factors influencing the growth of small scale grocery businesses.
The study adopted the descriptive survey design in its research design which was concerned with recording, describing analyzing and researcher selected the sample for the study using simple random sampling. Out of 147 grocery businesses, a sample of 30 % was taken ending up with 44 respondents for the study. Questionnaire and interviews were used as the main data collection instruments. The data received from the field was organized and analyzed according to research objectives by the use of frequency distribution tasks and percentage for all objectives.
The study revealed that in order to boost the growth of small scale grocery businesses in Kisii Municipality, there is need for all stakeholders to participate in assisting them. Since majority of small enterprises lack finances, government should establish friendly small loaning systems to support them. This would include low interest rates to ensure continuity of these businesses.
The issues of housing can be addressed through construction of affordable structures which should solve issues like congestion, storage and rent for the small entrepreneurs. Also, the government and other stakeholders should come up with proper regulatory policies that are small enterprises friendly since many of what we have in Kenya frustrates every effort of a junior entrepreneur. Most of the existing policies in Kenya seem to favor and care for the well-established businesses.
In addition, since there is evidence that small businesses have the potential to initiate minor technological innovations of suit their circumstances, specific policy measures should be developed to ensure that technology services, training and infrastructure are provided. For example the government should establish training and business information centers for the small scale traders. Apart from contributing to accelerated economic growth, small scale businesses have been a means through which rapid industrialization has been achieved in developing countries apart from improving forward and backward linkages between economically, socially and geographically, diverse sectors of the economy.
The public sector and formal financial institutions should be sensitized on the value of participation in informal sector enterprises. A major goal should be to empowerment of entrepreneurs as they constitute a social category that is critical in sustainable development endeavors In order to enrich this research, it is suggested that studies on factors influencing the growth of small scale grocery businesses be conducted in other parts of Kenya so as to compare the findings | en_US |
