FACTORS AFFECTING GROWTH OF SMALL SCALE ENTERPRISE IN KENYA

1866 Words Apr 21st, 2014 8 Pages
CHALLENGES AFFECTING THE GROWTH OF SMALL SCALE ENTERPRISES IN KENYA
(A Case study of Wajir Soko Mjinga Market)

A Research proposal Submitted in Partial Fulfillment for the Award of Diploma in Business Administaration to the Mount Kenya University

JULY 2013
ACKNOWLEDGMENT
I take this occasion to thank the Almighty GOD for blessing me with his grace. I extend my sincere gratitude to my MKU supervisors for giving the right guidance while undertaking this research proposal. My thanks to my beloved parents whom am forever indebted to for their inspiration, love, financial and moral support they have offered me since the onset up to the completion of this proposal.
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Starting a business is a risky venture and scholars have warned that chances of small enterprises owners making it past the five-year mark are very slim (ILO, 2005). Major challenges facing small scale traders include lack of financial resources, lack of management experience, unhealthy competition, poor government policies, general economic conditions, failure to maintain business records, factors such as poor infrastructure, and poverty, high cost of borrowing funds and dumping of cheap foreign products among others. Therefore, an understanding of the challenges affecting the small scale enterprise in Kenya will help the policy makers come up with interventions measures geared towards addressing the challenges and formulate policies that will stir growth of the sector.

1.2 Statement Of The Problem

Of late the government has been encouraging youth’s majority who are unemployed to start their own small scale business to become self reliant. The government through the relevant ministry has been supporting these initiatives by giving out funds at low interest rates, formulating policies that favor small scale entrepreneurs and giving training to youths to sharpen their entrepreneurship skills. However, despite these efforts by the government the sector is faced with a myriad of challenges that hampers its growth.
The research proposal will therefore seek to analyze the challenges affecting the growth of small scale enterprises in Kenya

1.3