Challenges facing growth of microenterprises in Kenya: a case of Tigania West Division
This study was conceived to find out the problems facing actors in the microenterprises sector. Microenterprises play a significant role in the country's economy. This sector provides goods and services and is also a driver in promoting competition and innovation; and enhancing the enterprise culture, which is necessary for private sector development and industrialization. Many countries in the world have realized the importance of SMEs and therefore are working to increase performance and competitiveness. In Kenya, this sector cut across all sectors of the country's economy and provide one of the most prolific sources of employment not to mention the breeding ground for medium and larger industries, which are critical for industrialization today, these enterprises are found in every comer of Kenya and they have great potential for creating a variety of jobs, while generating widespread economic benefits. It is in the light of the above that the study was designed to establish the challenges facing growth of microenterprise. The study was a descriptive study and was limited to Tigania west division. Questionnaires were the main data collection tools and descriptive statistics were used to analyze the data obtained from the field. Findings were presented in the form of frequency tables and percentages. Study findings demonstrate the numerous problems that micro-enterprises experience in day to day running of businesses. Majority of the microenterprise owners 82.1 % were not trained in any business skills which are needed to run micro and small enterprises: Even though the entrepreneurs demonstrated good working knowledge and expertise (85%) and conducted regular visits to working place to observe the employees as they work (53%), they did very little to motivate (70%) and to promote performance (52%) among their employees evidence of lack of management skills. The study also demonstrated that there was inadequate business support services and recommends that there is a need for a supportive policy to encourage the establishment of documentation centers and information networks to provide information to microenterprises at an affordable price. This study also recommends that business policies should aim to encourage and promote the development of microenterprises.