Factors influencing growth of micro and small Business enterprises in Oyugis town, Rachuonyo South district; Homa-bay county
Abstract
A large majority of firms worldwide are Micro and Small business Enterprises and are
playing a significant economic role in many Countries. There is therefore a broad consensus
that a vibrant MSE's Sector is one of the principal driving forces in the development of
market economy. According to a World Bank report (2001), MSEs are regarded as offering
an alternative route to economic growth especially in the context of increased poverty and
unemployment. This study sought to examine the influence of level of education; vocational
training of entrepreneurs; access to business finance; gender factor and level of security on
the growth of Micro and Small business Enterprises in Oyugis town Rachuonyo South
District, Homa-Bay County. This research study sought to help all stakeholders (especially
entrepreneurs and the Government) to come up with policy documents geared towards
assisting in both the establishment and management of MSEs in Kenya in generally and
Oyugis town in particular. The study employed stratified random sampling in its sample
selection and collected data from 226 businesses in Oyugis town. Research instrument used
were questionnaire (structured and unstructured) and interview schedules to collect data from
the respondents. The data was analyzed descriptively (by use of qualitative & quantities
techniques) and presented through frequency tables and percentages. Data was processed
using statistical package for social scientist (SPSS). The findings revealed that youths were
the majority entrepreneurs within Oyugis town. There were more men (56%) than women
(44%) entrepreneurs. Education level had influence on business growth with 76.2% of
respondents agreeing that it hindered their business performance. 58.0% of the respondents
agreed that their education level had helped them with business management and planning
skills. 70% of the respondents operating MSEs were not operating business along their
profession. 53.2% of the entrepreneurs within Oyugis town had attended vocational business
training with 38.6% having attended training on field excursions and seminars. The research
also found that insufficient funds had hindered growth of micro and small business
enterprises with 48% of MSEs being able to sustain themselves without financial or credit
facilities. 53.1% of respondents cited gender biasness in accessing loans facilities. Insecurity
was recorded in Oyugis town with 61.4% of the respondents citing insecurity. In view of the
above findings, the study recommends that the government should remove unfavorable and
punitive regulatory framework that negatively affects the performance of SMEs. Further,
promoting certain entrepreneurship practices will help more start-ups survive beyond the first
year of operations and remained sustainable. The study concluded that business success is a
consequence of embracing a mixture of strategies and policies to support MSEs as they strive
to grow. Areas which could form part of further studies include; information and
communication technology and its influence on business growth, business location and its
influence on business growth and also the relationship between firm's age and its growth.
Citation
Degree Of Master Of Arts In Project Planning And Management,Publisher
University of Nairobi,
Collections
- Faculty of Education (FEd) [6020]