EFFECT OF UNLICENSED BUSINESSES ON EFFICIENCY OF

COUNCILS

A CASE STUDY OF KIKUYU TOWN COUNCIL

BY MAHEA TIMOTHY KIMANI

L/123/569/2002

A PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE

AWARD OF THE DIPLOMA IN BUSINES MANAGEMENT,

UNIVERSITY OF NAIROBI

AUGUST, 2003

1

DECLARATION

This research project is my original work and has not been presented for

a degree or diploma in any University.

NAME : MAHEA TIMOTHY KIMANI

REG NO. : L123/569/2002

SIGNATURE …………………………

DATE …………………………

This research project has been submitted for examination with my

approval as University Supervisor.

NAME : EVANS VIDIJA SAGWA

DESIGNATION : LECTURER

SIGNATURE ………………………….

DATE ………………………….

2

DEDICATION

I dedicate this work to my father Stephen, my mother Margaret who as

my parents enriched me with education and shaped my future to make me

who I am today. I also dedicate this work to my sister Evelyne, my

brothers Mark and Crispus for their support, guidance and

encouragement which enabled me to achieve my goal and above all for

their enduring love to me.

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ACKNOWLEDGEMENTS

Foremost, I am grateful to God for his care and assistance. I would like to

take this opportunity to thank the following people for their assistance,

which gave value to this project.

Mr. Simon Kamau

Mr. Saruni Ole Kudate, Deputy Town Clerk Kikuyu

Mr. Martin Mukuria

Mr. Joseph Karanja

Mr. Kiruri

Mr. Danson Kahura

Mr. Amos Otuma

I register my profound gratitude and sincere acknowledgements to my

informants, my fellow students who have assisted me in diverse

capabilities. I appreciate the efforts of Martin Mukuria who inspired me

to begin this course.

I also express my indebtedness and special gratitude to Mr. Evans Vidija

Sagwa who was my supervisor. His insightful criticism, scholarly

comments, academic challenges and constructive dialogue were an

invaluable inspiration in the completion and quality of this project.

In the bibliography, I duly acknowledge with gratitude the authors of the

data used.

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ABSTRACT

The council authorities play a major role in developing a country and

earning it a place compared to the others. They provide essential services

to the society, which are important to us in our day to day lives. The

revenue it earns and external funding aid the services they provide.

Services provided should be of high quality, reliability and convenient.

This research project investigated the effects of unlicensed businesses on

efficiency of the council. The study sought to know the views of the

council, the business owners and the residents of the Kikuyu area who

receive services from the Kikuyu Town Council and also are customers

of the businesses around the area.

To get qualitative information three types of questionnaires were

developed and distributed to all the parties respectively. The responses

were keenly analyzed and the data well recorded in order to know the

views of each party.

Much precaution was applied to ensure that the respondents did not

introduce biasness in the research so as to come up with valid findings

and know the situation as it is on the ground. The findings were analyzed

in pie charts, graphs and tables. Recommendations were given to promote

efficiency in the council and for better provision of services.

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TABLE OF CONTENTS

PAGE PAGE NOTitle Page ……………………………………………… (i)Declaration ……………………………………………. (ii)Dedication …………………………………………….. (iii)Acknowledgements …………………………………… (iv)Abstract ………………………………………………. (v)Table of contents ……………………………………… (vi)List of tables…………………………………………… (viii)1.0 CHAPTER ONE – INTRODUCTION

1.1 Introduction ……………………………………… 11.2 Statement of the Problem…………………………… 21.3 Purpose and Significance of the Study ……………… 21.4 Research Questions/Hypothesis/ Objectives of the Study 51.5 Scope and Limitations of the Study ………………… 61.6 Basic Assumption …………………………………… 71.7 Defination of Terms ………………………………… 81.8 Organization of the Study …………………………… 9

2.0 CHAPTER TWO – LITERATURE REVIEW

2.0 Literature Review ……………………………………. 112.1 Regulation of Business ……………………………… 112.2 Provision of Services ……………………………….. 122.3 Customer Satisfaction ………………………………. 132.4 Consumer Protection ……………………………….. 142.5 Service Standards ………………………………….. 152.6 Employee Motivation ……………………………… 162.7 Economic Conditions ……………………………… 182.8 Political (Legal Environment) ……………………... 192.9 Business and Society ………………………………. 202.10 Awareness of Major Social Problems …………….. 212.11 The Problem of Corruption…………………………. 22

3.0 CHAPTER THREE – RESEARCH METHODOLOGY

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3.0 Research Methodology ……………………………… 243.1 Research Design …………………………………….. 243.2 Sources of Data ……………………………………… 243.3Target Population…………………………………….. 243.4 Sampling Design ……………………………………. 253.5 Instruments of Data Collection ……………………... 253.6 Data Collection Procedure ………………………….. 273.7 Data Analysis Procedure ……………………………. 27

4.0 CHAPTER FOUR – DATA ANALYSIS

4.0 Data Analysis and Findings ………………………. 284.1.1 Customers Perception of Small Businesses

around Kikuyu Area ……………………………. 29a) Purchase from Small Business Operators ……. 29b) Reasons of Purchase from Small Business Operators 30c) Satisfaction …………………………………. 31d) Importance of Unlicensed Businesses ………. 32e) Prevention of Unlicensed Businesses ……….. 33

4.1.2 Views of Small Business Traders ………………... 34a) Period of Operation ………………………….. 34b) Rate of Consumers Served …………………… 34c) Major Problems Encountered ………………... 35d) Services Received ……………………………. 36

4.1.3 Views of kikuyu Town Council …………………. 38

5.0 CHAPTER FIVE – SUMMARY AND CONCLUSIONS

5.0 Summary and Conclusions ………………………… 415.1 Findings of the Study ………………………………. 415.2 Recommendation …………………………………… 435.3 Recommendations for Further Research ……………. 46

BIBLIOGRAPHY ……………………………………………. 47APPENDICES:Appendix I Questionnaire I……………….. …….. 48Appendix II Questionnaire II……………………... 50Appendix III Questionnaire III ……………………. 52Appendix IV Time Plan ……………………………. 55Appendix V Budget Plan ………………………….. 56

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LIST OF TABLES

Table Number Title Page No.

4.0(a) Purchase from Small Business Operators ……… 29

4.0 (b) Reasons for Purchase from Small Business Operators 30

4.0(c) Satisfaction ……………………………………… 31

4.0 (d) Importance of Unlicensed Businesses ………….. 32

4.0 (e) Prevention of Unlicensed Businesses ………….. 33

4.0 (f) Period of Operation …………………………….. 34

4.0 (g) Rate of Customers Served ………………………. 35

4.0 (h) Major problems Encountered…………………… 35

4.0 (i) Rating of Services Received ……………………. 37

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CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Within the Republic of Kenya, for many years, there have been

unlicensed businesses operating with the members of the public

being aware of their existence. Some members of the public have

been customers of unlicensed businesses knowingly or

unknowingly. Out of the revenue collected, the Councils

Authorities are supposed to spend some of the amount on cleaning

the environment through garbage collection, provision of basic

infrastructure like water resources, roads and markets, and also

save some amount which can be used in future intended projects

like construction of schools, hospitals, sanitations and security

provisions.

The Councils Authorities are often faced with the problem of

dealing with unlicensed businesses, which are increasing rapidly,

and the situation has proved to be deterring the efforts of the

Council. For instance, the Kikuyu Town Council has been forced

to destroy kiosks and illegal structures constructed at matatu stages

and along roadsides. The Council askaris have also been involved

in constant running battles with hawkers in an effort to eliminate

the hawking business. In a previous survey carried out in the

Kikuyu area, which is under Kikuyu Town Council, it was found

that most of the unlicensed businesses deal with illegal products

like illicit brews and counterfeit products. The Council has also

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had to cultivate a good relationship with members of the public so

that they can help them know the businesses existing illegally so

that appropriate action can be taken. Councils ought to ensure that

they put in place measures that help it earn the revenue it is

supposed to earn and closely monitor businesses to attain the best

results, and a realistic projection of its financial obligations and

services to its residents.

1.2 Statement of the Problem

Efficiency of the Councils has not been fully achieved despite their

efforts. One of the major hindrances is thought to be the unlicensed

businesses that are increasing rapidly. These businesses are

considered a security threat, environmental risk and have an impact

on the society in various ways since most of them do not satisfy

the required set standards. For the Councils to be efficient, they

have to ensure that they take all the measures in the best way

possible. These issues concretize the important point of eliminating

unlicensed businesses. The researcher intends to establish ways of

keeping such businesses in check.

1.3 Purpose and Significance of the Study

The purpose and significance of the study was: -

a) To investigate how unlicensed businesses came into

existence, why they came into existence and how they

can be eliminated.

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b) To establish the kind of customers this businesses target

and their social status.

c) To find out ways of ensuring that this kind of businesses

do not have room for existence in future.

The result of this study will be important to various groups of

people in various ways: -

Consumers

In most cases, consumers are often faced by problems of buying

substandard goods, imitated and defected products. The findings of

this study will create awareness of the unlicensed businesses

existence and educate them on their effects. They will also be able

to know the best places to shop their items.

Businessmen.

With the knowledge attained concerning unlicensed businesses and

substandard products by the genuine businessmen, it will help

them supply to consumers the products that are from licensed

businesses and that are up to the set standards. It will also enable

them to exercise extreme caution especially when buying products

to ensure they attain those that are of high quality and

performance.

Councils

Unlicensed businesses are a threat to efficiency of the Councils.

The Councils will benefit from the result because they will get

information that will help them in tackling the problem and putting

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measures in place to prevent such businesses from operating in

future. The revenue collection would be greatly improved and

security and environmental pollutions manageable.

Government

Through legislations the government will be able to formulate

ways of dealing with unlicensed businesses and the offenders of

the law who lie in that category. Loss of revenue will be put under

control.

Investors

The investors will benefit when unlicensed businesses are

eliminated because they will be sure that there will be no

counterfeiting of their products. This will go a long way in helping

acquire the revenue they deserve and the consumers will have the

right perception of their products.

Society

When the councils are efficient, they are able to create a condusive

environment for investors and the society at large. The society will

benefit from the good services that the Councils will offer and

from investors who may invest in the area through improvement of

infrastructure and through employment.

Research

The findings of the study will also contribute much to the available

literature, which can further be used in future research references.

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1.4 Research Questions/Hypothesis /Objectives of the Study.

The following research questions were used as a guide to the

study: -

a) What is the view of members of the public regarding the

existence of unlicensed businesses in their society?

b) Are the customers of unlicensed businesses satisfied with

the kind of products or services that are offered?

c) What effect do unlicensed businesses have on the area

they operate in, the customers and competition in the

market?

The hypothesis of this study included the following: -

a) Lack of awareness among consumers has promoted the

existence of unlicensed businesses.

b) Efficiency in the Councils can be achieved if much effort

is put in to deal with the problems encountered.

The main objective of this study was to establish the main reason

leading to the existence of unlicensed businesses. Specific

objectives included the following: -

a) To find out why consumers of the products prefer buying

from unlicensed businesses rather than buying from licensed

businesses.

b) To investigate how the Kikuyu Town Council has dealt with

previous problems of unlicensed businesses and the

penalties given if any.

c) To offer suggestions on measures that can be put in place to

eliminate unlicensed businesses.

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1.5 Scope and Limitations of the Study

(a) The scope

The study was carried out at Kikuyu Town Council, at random

selected businesses and randomly selected residents in the area. It

was also stretched to Nairobi City Council, which is in charge of

the Capital City of Kenya. The respondents in this study included

businessmen, the governing body of the councils and members of

the public who are also the consumers.

(b) Limitations.

There are some factors that limited the progress of the study. They

included: -

Respondents

The researcher had a difficult time when gathering information

from the respondents. Some of them might have not fully provided

the required data due to fear of intimidation. Some of the

respondents ignored the most sensitive questions while others did

not fill all the questions in the questionnaire.

Finance

The study involved traveling to various areas to gather

information. It also involved preparation and distribution of

questionnaires. After information gathering, arrangement and

analysis of data and the preparation of the final report was

required. Large sums of money were required which were not

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available since the amount financing the project had to be properly

budgeted to sustain all the requirements up to its completion.

Data sources

There was lack of documented information in some areas required

to be studied and most information to be gathered was from the

respondents. Some of the respondents may have introduced

biasness in the study if they gave incorrect information. Also in

some areas the data sources were scarce and this might have

affected the study since the project had a time limit.

Time

The project was carried out within a period of six months. The

time might not have been sufficient for exhaustive investigation

and survey.

1.6 Basic Assumptions

The study was based on the following assumptions: -

a) That unlicensed businesses exist illegally.

b) The Councils are devoted to eliminating illegal

businesses in the market.

c) That the Councils would like to deliver the best services

to members of the public and work to everyone’s

satisfaction.

d) That members of the public have a good perception of

the Council where it shows commitment to provision of

good services to the society.

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e) That where Councils have eliminated unlicensed

businesses there is improved efficiency and a good

relationship with members of the public developed.

f) That efficiency is achieved where an organization clearly

defines its objectives and works towards the realization

and achievement of their intentions through working

together and all members of the organization feeling

responsible at their level of operation.

1.7 Definition of Terms

Unlicensed Businesses

Any business operating without a valid license from the government.

It may take place in two ways: either it may have acquired a license

initially but after it expired, it was never renewed or it may have

never acquired a license because the owner does not want to acquire

one or the business is not legal according to the law therefore cannot

be licensed.

Town Councils

These are elected governing bodies of towns. They have the power to

make by laws, rules, regulations and decisions for towns and

enforcements.

Kikuyu Town Council

An elected governing body of Kikuyu Town in Kiambu District.

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Council Askaris

They are people who are employed and trained by the Council to

undertake, among other duties, apprehension of people who in their

course of business break the by laws made by the Council.

Hawkers

Individuals who carry out their businesses on temporary or moveable

structures. They carry out their businesses on pavements in the

streets, at the roadsides and in undeveloped government or public

utility land.

Kiosks

These are business structures similar to constructed shops, which deal

with various items depending on the objectives of the owner, but

usually have few items and are small-scale businesses.

1.8 Organization of the Study

The organization of the study was as follows: -

A financial budget was set out to cover transport, stationeries,

photocopying, binding and other overhead costs. Questionnaires were

constructed and distributed to owners of unlicensed businesses, to

members of the public around the Kikuyu area and outskirts centers

of Nairobi and one questionnaire to the governing body of Kikuyu

Town Council.

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Interviews were carried out with the Kikuyu Town Council governing

body and with some of the employees in that organization. Also

interviews were conducted with members of the public who are the

main customers of the items supplied by various businesses.

Where possible, some of the customers of unlicensed businesses were

observed as they purchased various items without fear or hesitations.

The responses that were received from Kikuyu Town Council

governing body, members of the public and owners of unlicensed

businesses were analyzed through editing, coding and tabulation

methods. The findings and recommendations were done based on the

data that was analyzed. Recommendations were given to benefit the

parties involved and for further research.

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CHAPTER TWO

2.0`LITERATURE REVIEW

The researcher reviewed literature related to the research as

follows: -

2.1 Regulation of Business

In a newspaper supplement in the Daily Nation of May 6. 2003,the

Nairobi mayor Mr. Joe Akech observed that, “…. constant running

battles between the hawkers and Council Askaris does not help

much in streamlining business in the Central Business District

Area”.

From this experience it follows other Town Councils have to learn

how to come up with better ways of conducting business. This may

involve the licensing of the hawking business and allocation of

areas where individuals can conduct their businesses. This helps in

keeping the central business area clean and also ease congestion of

vehicles and individuals. Accessibility is also enhanced to the

convenience of customers since they are able to access the

products they want easily.

The Councils need to create areas where businesses can be

performed in an effort to give a permanent solution since the

hawkers want to carry out business like other individuals. With

their small capital and in a combined effort, the Council can be

able to provide business premises spaces and at the same time have

a revenue source.

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2.2 Provision of Services

The service received by individuals from the Council goes a long

way in creating a perception in individuals about the Council.

Whether the perception is good or bad depends on the kind of

services they get. In a newspaper supplement in the Daily Nation

of May, 6,2003, the City Council of Nairobi Town Clerk, Mr. Jack

Mbugua noted that “…. The major changes undertaken are to de-

congest the paying halls, and to ensure that the pay-in counters are

well marked……………. The revenue collection has also

improved”.

This follows that the customers will be able to easily identify the

counters and pay their bills and taxes comfortably and

conveniently. The customers will have a good perception of the

Council and will see an improvement to the right direction. The

quality of service received is what determines people’s loyalties

and satisfaction. Whenever the services expected are received and

to the satisfaction of the people, good communication is achieved

such that whenever there is a problem hindering the provision of

the services, people will understand and will not complain. When

individuals are satisfied they become advocates of the organization

through their comments.

According to Watkins (1997), the quality of service depends not

only upon the efficiency of the methods and physical facilities, but

it is also heavily reliant upon the knowledge, skills, enthusiasm

and loyalty of the staff. It is important to have very qualified

personnel to enable efficient service provision. Each member of

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staff should feel part of the organization and feel responsible at his

level of operation.

2.3 Consumer Satisfaction

Consumer satisfaction is attained when consumers get products or

series that are of high quality. When a consumer gets a product of

high quality and performance, and the product benefits him to the

fullest, the consumer feels satisfied. The same case applies to a

service which when provided in the best way possible leaves the

consumers satisfied. Consumer satisfaction is determined by many

factors like: -

i. Where the product or service is received,

ii. The manner in which it is given,

iii. The quality and performance of the product or service,

iv. The convenience of getting it,

v. Whether it satisfies the required needs.

These factors need to be considered if consumer satisfaction is to

be achieved. The person dealing with customers who are also

consumers should be having the required skills and knowledge to

ensure that communication between them is done in the right way.

They should be able to treat the consumers in a way they feel

comfortable (Samuelson and Nordhaus, 1995).

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2.4 Consumer Protection

The government has supported and also put in place measures to

protect consumers from being exploited by the producers and

retailers. The kind of protection given is divided into two

categories: -

1) Regulations- this are prescribed by the status and

administered by the central government and the

local government.

2) Activities initiated and directed by voluntary

organizations to exert pressure on manufactures and

distributors to remedy defects or redress genuine

complains, improved trade practices and standards,

and initiate legal action for redress.

Consumer protection plays an important role in the society. Most

consumers are not aware of their rights. Those who know their

rights and they are infringed, do not know the proceedings to

follow, or, they are not willing to spend their resources in terms of

time and finance on law suits. It therefore follows that it is

important for the government to take action to protect consumers.

The basic functions of consumer protection are: -

a) To protect consumers against sale of goods of

poor quality.

b) Protect consumers from being sold products

that do not indicate ingredients used in

manufacturing a product.

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c) Protect consumers from being provided with

services that are of inadequate nature.

d) Protect consumers from being sold items that

are of the right weight and measures.

e) Protection from the failure of retailers or

producers to uphold conditions set out or

implied in contracts, executed for goods and

services.

This protection keeps the producers on their toes because they

know they have to follow the laid down procedures. Since they

know the remedy, they try and observe the law and this ensures

that the consumers get the best (Samuelson and Nordhaus, 1995).

2.5 Service Standards

Duty performance – a duty is a responsibility that is entrusted to

an individual or to a group of individuals. A duty well done is

satisfaction to everyone. The way a duty is done determines many

other factors that follow after. It also tells people something about

the person who performed the task. If a duty is poorly done, people

may think that the person performing the duty is lazy or is

demotivated or not committed to his job. But when a duty is well

done, it shows that the person doing it is committed to the job or is

hard working or he enjoys doing it. Something well done is eye

catching and attraction to many people. For instance, when an

individual takes his vehicle to a car washer and it is cleaned

thoroughly, he will notice that and will feel like always wanting to

have his vehicle cleaned at that place. This helps a lot in winning

the confidence of people.

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Handling complaints – any complain resulting from delivery of

services should be handled with a lot of seriousness. Ways of

solving the problem should be immediately established and a

permanent solution be put in place to prevent that from recurring in

future. The staff dealing with the customers and who handle the

complaints should have the necessary skills needed in dealing with

people. They should be able to handle complainants and

appropriate action taken to solve the problem (Watkins, 1997).

2.6 Employee Motivation.

The primary task of an organization is to ensure productivity as

such the primary task of the management therefore is to ensure that

this objective is achieved by seeing that subordinates staff work

efficiently and produce results that are beneficial to the

organization. Various things can be done to motivate employees.

They include: higher pay, prestigious title, nametag praise,

recognition and responsibility. Studies carried out have shown that

motivated employees perform better than demotivated employees.

Therefore, to induce people so that they can contribute efficiently

and effectively, motivation is necessary if at all the goals of an

organization are to be achieved. The management needs to

understand the behaviour of their subordinates. The driving force

that makes employees work is the desire to satisfy a need. But if

they work and their needs remain unsatisfied they may result in

irrational behaviours. This may include:

a) Aggression – This is a destructive behaviour such as

hostility (physical/verbal) and striking out. The feelings

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of rage or hostility are directed against the person or

object that is felt to be the cause of frustrations.

b) Rationalizing – means making excuses such as blaming

someone else for inability to accomplish a goal.

c) Regression – means not acting one’s age by resulting to

immature acts e.g. unreasonable complaining or crying.

d) Fixation – occurs when a person exhibits the same

behaviour pattern several times even though the

experience has shown that it can accomplish nothing.

Research has shown that frustration can maintain old and

habitual responses and prevent the use of new and more

effective methods.

e) Resignation (apathy) – occurs when people lose hope of

accomplishing their goals and withdraw from reality and

the source of their frustrations. It involves complete

surrender and borders on serious mental disorders. This

phenomenon is characteristic of people in boring, routine

jobs, where they resign themselves to their goals.

The organizations should create an environment in which people

feel the burning desire for work and the willingness to exert high

levels of effort to achieve a predetermined reward or goal (Stewart

and McGoldrick, 1996).

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2.7 Economic Conditions

Development is brought about by the growth of the economy.

When the economic situation of a country is registering good

performance, people’s standards of living improve and they

become independent. In a developed economy people are assured

of the basic needs, therefore they get a chance to plan their future

and their way of survival. On the contrast, in the case of a poor

performing economy, things are usually negative people standards

of living are low and poverty is evident. The rate of unemployment

is very high and some of those employed get little pay that just

enables them to survive but they cannot do anything beyond that to

better their lives. In such a case, insecurity increases and people

tend to break the law in order to survive. People usually in such

circumstances, would do anything or do any kind of business in

order to get money. This leads to an increase in theft, corruption,

violence, increase in the black market and sale of illegal items. It

also leads to increase in small illegal businesses like sale of illicit

drugs and illicit brews, loss of self-esteem and degrading of human

value.

The economic conditions in a country, such as level of

development, natural resources, income distribution, availability of

technical personnel, supply of power, development of transport and

communication and other infrastructure are important factors to

consider in an economy. Some of the economic policies that

government applies have major setbacks and a negative impact on

the growth of an economy.

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2.8 Political (Legal Environment)

Political - legal environment has direct economic impact on

business firms. The government can play a supportive role to

encourage business enterprise and regulative role to control

business enterprises in the interest of public good. For example, the

Local, State and Central Government can undertake many steps to

encourage or protect business enterprises through tariffs, tax

incentives, low interest loans, granting free land, providing

adequate transport, power and communication, investing in basic

and heavy industries, invest heavily in basic research, granting tax

incentives to develop industries in under developed areas,

protecting industries from undue foreign competition and

enforcing the various regulations regarding practicing of business.

The political- legal environment is the background laws and

regulations enacted by the government – local, state and central –

under which the business enterprises have to carry on their

business activities. This environment provides opportunities to the

business firms, poses challenges and creates hardships and

problems for them. The government thus strongly interacts with

business firms, influences their business policies, encourages and

regulates them.

The government generally plays four roles as it interacts with

businesses. It performs both “supportive” and “regulative”

27

functions by enacting legislation to control and regulate the

business enterprises in the national and public interest (Berndhardt,

1978).

2.9 Business and Society

A business enterprise is a part and parcel of the society in which it

exists. Although the primary objective of a business firm is to earn

profit, it exists because it satisfies the needs or services required by

the society. While operating for a profit a business entity cannot

completely overlook or be indifferent to its social responsibility.

While supplying the goods and services wanted by the society, a

business company performs many functions such as providing

revenue to the government, both state and central, by way of

paying different taxes, developing the economy through

investment of funds, providing employment and contributing to the

development of the local area in which it operates in performing all

these functions the business company interacts with different strata

of the society such as the government, customers, suppliers,

investors, employees and the general public. All these different

people interact and influence the business enterprise, which in turn

influences them also. Thus it will be seen that there is a close

relationship between the business and the society and that one

cannot be separated from the other. Therefore, this close

relationship and the different roles played by the business, the

society expects the business to play an active role in realizing

28

social problems such as environmental pollution, community

housing, basic infrastructure, education, and secure atmosphere

(Koontz and Weihrich, 1984).

2.10 Awareness of Major Social Problems

This includes problems such as pollution of the environment and

the ecological debasement. Pollution of air, water, and noise

pollution is already a major problem. Large industries create

ecological problems, which threaten public life. Concentration of

industries also creates problems of housing, sanitation, slums and

health. There is the problem of unemployment of local labour,

training of workers and health care. The society expects that large

business concerns should tackle these problems and help the

society to improve its quality of life. People’s beliefs and values

vary between different cultures.

There are also a number of demographic factors such as age and

sex composition of the population, size of the family, religion, and

the geographical area, which also influence business. Social

environment has acquired greater significance in recent times. If

businesses would undertake activities like supporting creative arts,

spreading education, encouraging various sporting activities,

encouraging communication, and improving health facilities, they

will not only help to improve quality of life but will justify the

reasons for their existence (Hill and Jones, 2001).

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2.11 The Problem of Corruption

The huge dimensions of the problem of corruption on African

Nations are reflected in the following observations of Nigerian

society made more than ten years ago by Mr. A. Tokunboh,

permanent secretary, Federal Ministry of Establishments.

“………. All efforts to establish a just and efficient administration

have been frustrated by corruption. The evil exists in every facet of

our society. You bribe to get your child into a school. You pay to

secure a job. You dash the tax office to avoid paying taxes; you

pay the policeman to evade arrest. This catalogue of shame can

continue without end (quoted in Aina 1982, pg 71)

According to a number of writers the nature and extent of the

problem has changed little in the intervening period (e.g. Aina

1982; lamb, 1982).

The major problem with fighting corruption is that those whose

duty is to reveal corruption only do so when forced by external

pressure, and then claim that instances sited as evidence are

isolated and rare occurrence (Caiden and Caiden, 1977).

Blunt and Popoola (1985), observe that where there are conditions

of extreme inequality, absolute poverty, and widespread lack of

basic need satisfaction, the incentive to corrupt whatever official

purposes formal work organizations are agreed to have is almost

irresistible.

30

Corruption can be fought through ensuring that desired rewards are

clearly and consistently made contingent upon behaviour directed

at satisfying organizational, as opposed to purely personal

objectives. (Blunt and Popoola, 1985).

31

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

The resources and types of information that were used to facilitate

the study are discussed in this chapter. It also discusses systematic

investigations to establish why consumers prefer buying products

from unlicensed businesses rather than licensed businesses.

3.1 Research Design

Descriptive research was used so as to get qualitative data. This

helped in examining a problem further and be able to ascertain and

describe the characteristics of pertinent issues.

3.2 Sources of Data

Sources of data included the governing body of Kikuyu Town

Council, owners of unlicensed businesses, customers, newspapers,

journals, magazines and textbooks with related information.

3.3 Target Population

The target population was the unlicensed business owners,

residents in the Kikuyu area and the governing body of the Kikuyu

Town Council. A certain level of literacy and knowledge was

required from the respondents. Therefore, in the study, middle-

aged and youthful individuals who are professionals and business

people were targeted. This enabled the researcher to be efficient

and accurate so as to come up with the most valid findings. A total

number of sixty subjects, who are residents in the area under

Kikuyu Town Council and fifty subjects who are business owners

32

in Kikuyu area, were issued with questionnaires using the random

sampling method. Also the governing body of Kikuyu Town

Council was issued with one questionnaire. The researcher selected

Kikuyu Town Council because it was the most convenient and

required information could easily be accessed.

3.4 Sampling Design

Random sampling technique was used to sample out the study

population. Simple random sampling was advantageous in that it

has the least bias and that the results can be generalized across the

board.

3.5 Instruments of Data Collection

These included the development of questionnaires by the

researcher to the residents of Kikuyu area, to owners of small

businesses and to Kikuyu Town Council. It also included interview

guides with the governing body of the Kikuyu Town Council and

observations of customers of small businesses. The questionnaires

had open-ended and closed-ended questions. The open-ended

questions were intended to obtain personal views of respondents

where as the closed-ended questions were intended to obtain

specific data on the subject of study.

Questionnaire

The researcher chose the questionnaire as instruments because they

gave the respondents ample time to think over in a more relaxed

manner in answering the questions. It was a cheap means of

collecting data and provides unbiased data on the study. It was also

33

an important instrument because some of the information that was

private or in cases where respondents may have been shy to answer

questions, while using the questionnaire they were relaxed.

Interview Guides

This instrument was aimed at the governing body of Kikuyu Town

Council, which is concerned in making decisions, approving

expenditure and monitoring the performance of activities aimed at

providing the required services. Interview guides helped in

providing unbiased information and a chance to ask questions or

for clarification was available. The researcher was able to control

the order of questions that were presented to the subject. Interview

guides were advantageous since the researcher could note verbal

and non-verbal responses.

Observation

This instrument was used in observing customers of unlicensed

businesses as they carried out their purchasing normally. This

instrument was important because there was minimal distortion of

information by respondent.

34

3.6 Data Collection Procedure

The researcher designed three questionnaires. One was aimed at

the governing body of the Kikuyu Town Council, the other to

owners of small businesses and the other to the residents in Kikuyu

area. This enabled the researcher to obtain information on how the

Council and residents felt about unlicensed businesses and on the

other hand, know the views of owners of small businesses. The

researcher carried out personal interviews with members of the

governing body of Kikuyu Town Council since they were the

people who were well versed with the operations of the Council.

The researcher also observed customers as they purchased from

unlicensed business. The personal interviews combined with the

questionnaires formed the ingredients that provided crucial

information and data since they were important tools of gathering

data. The data collected from interviews and questionnaires was

summarized and recommendations given.

3.7 Data Analysis Procedure

After the required data was collected, it was analyzed through

editing, coding and tabulation methods and finally a summary of it

was given.

35

CHAPTER FOUR

4.04 DATA ANALYSIS AND FINDINGS

n this chapter, findings are presented based on the questionnaires

administered and the interviews conducted to meet the objectives

of the study. Three types of questionnaires were used in gathering

information. A total of sixty (60) questionnaires were issued to

customers of businesses around Kikuyu area but only forty eight

(48) were duly filled and returned. Another type fifty (50)

questionnaires were distributed to small business traders but only

forty-two (42) were duly filled and returned. Lastly, one type of

questionnaire was presented to the Kikuyu Town Council, duly

filled and returned. The responses were properly checked to ensure

that they were accurately answered and the data well interpretated

by the respondents. The responses were systematically organized

in a manner that facilitated analysis. To permit quantitative

analysis, data was coded to specific categories and in a numerical

form. On collection of data from the customers, small business

traders and the Kikuyu Town Council, the researcher synthesized

and analyzed them through editing, coding and tabulation methods,

and drew import recommendations. Shown below is data analyzed

as for the responses from the questionnaires.

36

4.1.1 Customers Perception of Small Businesses Around Kikuyu

Area

a) Purchase From Small Business Operators

Forty-eight (48) questionnaires answered by customers of businesses around

Kikuyu area were analyzed. The table below shows customers who purchase

from small businesses and those who do not purchase from small businesses.

Purchase from Small Business Operators No. of Customers

Purchase 45

Do not purchase 3

TOTAL 48

Table 4.0(a) Purchase from Small Business Operators (n=48)

The table indicates that out of forty-eight respondents, forty-five

respondents indicated they purchase from small businesses while

three indicated they do not purchase from small businesses. Further

analysis is shown in the pie chart below.

45/48 x 360 = 337.5º

3/48 x 360 = 22.5º

b) Reasons For Purchase From Small Business Operators

37

The table below shows the reasons why customers purchase from

small business operators.

Type of Reason No. of

Customers

Out of

48Customers

They sell in small quantities 24 47

They are cheap 17 48

They are closer to the residents 38 48

To promote them 9 48

Business operators are well known and

trusted

16 48

They offer credit facilities 8 48

They offer after sale services and also

gifts

5 46

Have a variety of products 13 48

Time utility 25 48

Table 4.0(b) Reasons for Purchase from Small Business

Operators (n = 48)

From the table above, twenty four customers indicated they

purchase from small business operators because they sell in small

quantities, seventeen because they are cheap, thirty eight because

they are closer to the residents, nine indicated they wanted to

promote them, sixteen because they are well known and trusted,

eight because they offer credit facilities, five indicated because

they offer after sale services and gifts, thirteen indicated because

they have a variety of products, and twenty five indicated it was

because of time utility.

38

c) Satisfaction

Table 4.0(c) below shows the views of the customers regarding the

satisfaction they get from the products purchased from small

business operators.

Satisfaction No. of Customers

Satisfaction achieved 40

Satisfaction not achieved 8

TOTAL 48

Table 4.0(c) satisfaction (n = 48)

From the table above forty customers of small businesses get

satisfaction from the products they purchase while eight customers

do not get satisfaction from the products they purchase. Further

analysis is showed on the pie chart below.

40/48 x 360 = 300º

8/48 x 360 = 60º

39

d) Importance of Unlicensed Businesses

Table 4.0(d) shows the responses of the customers regarding their feeling

about unlicensed businesses in the society.

Importance of Unlicensed

Businesses

No. of Customers

Are important to the society 16

Are not important to the society 30

Not sure 2

TOTAL 48

Table 4.0(d) Importance of Unlicensed Businesses (n = 48)

From the analysis done sixteen customers felt that unlicensed

businesses are important to the society, thirty felt they are not

important to the society and two members of the society indicated

they were not sure whether they are important. Below is the

representation of the analysis on a pie chart.

16/48 x 360 = 120º

30/48 x 360 = 225º

2/48 x 360 = 15º

40

(e) Prevention of Unlicensed Businesses

Table 4.0(e) shows the views of customers about the action that

should be taken to prevent unlicensed businesses from operating.

Type of Action No. of

Customers

Out of 48

Customers

Reduce corruption 26 48

Review tax rate 22 48

Apprehend law offenders 17 48

Improve human relationship 16 48

Conduct regular checks 19 48

Have well trained inspectors 14 48

Put stiff penalties to the operators 15 48

Table 4.0(e) Prevention of Unlicensed Businesses (n=48)

According to the analysis, the suggestions given by the customers

on the action that the Council should take were as follows:

Twenty six customers indicated that they should reduce corruption,

twenty two indicated that they should review tax rates, seventeen

indicated they should apprehend law offenders, sixteen indicated

they should improve human relationship, nineteen indicated they

should conduct regular checks, fourteen indicated they should have

well trained inspectors and fifteen indicated they should apply stiff

penalties to the operators.

41

4.1.2 Views of Small Business Traders

Below is the analysis of responses of small business traders

regarding various experiences in their operations.

(a) Period of Operations

Table 4.01(f) shows the period in which small business traders

have been in operation.

Period of Operation No. of Small Business

Traders

Less than a month Nil

1 month to 3 months 6

3 months to 6 months 9

6 months to 12 months 12

Over a year 15

TOTAL 42

Table 4.01 (f) Period of Operation (n = 42)

From the above analysis fifteen business traders indicated they

had operated their businesses for over a year, twelve indicated they

had operated in the period between 6 months to 12 months, nine

indicated they had operated in the period between 3 months and 6

months, six indicated they had operated in the period between

1month and 3 months while none had operated for less than a

month according to the analysis.

(b) Rate of Customers Served

Table 4.01(g) shows the average number of customers served in a

day by small business traders.

42

Rate of Customers Served No. of Small Business Traders

Less than 50 17

More than 50 but less than 100 11

More than 100 but less than 150 9

More than 150 5

TOTAL 42

Table 4.0 (g) Rate of Customers Served (n = 42)

According to the analysis done, small business traders who serve

less than 50 costumers in a day were seventeen, those who serve a

number of customers ranging between 50 and 100 were eleven,

those who serve a number of customers between 100 and 150 were

nine and those who serve more than 150 in a day were five.

(c) Major Problems Encountered

Table 4.0(h) shows the major problems encountered by small

business traders in the course of running their businesses.

Major Problems Encountered No. of Small Business

Traders

Financial constrains 23

High license fee 21

Poor inaccessible roads 17

Monopoly of business 11

Low profit margin 15

Unpaid debts by customers 9

Slow moving stock often leading to

expiry

12

Table 4.0(h) Major Problems Encountered (n = 42)

43

According to the responses received, twenty three small business

traders indicated that financial constraints were major problems,

twenty one indicated high license fee, seventeen indicated poor

inaccessible roads, eleven indicated monopoly of business, fifteen

indicated low profit margin, nine indicated unpaid debts by

customers and twelve indicated slow moving stock leading to

expiry.

Further analysis is shown on a graphical representation below.

A – financial constraints

B- high license fee

C - poor inaccessible roads

D – monopoly of business

E- low profit margin

F – unpaid debts

G – slow moving stock

(d) Services Received

Table 4.0(i) shows the responses received regarding the services

offered by Kikuyu Town Council to small business traders.

44

Rating of Services Received No. of Small Business Traders

Very satisfied 5

Satisfied 9

Dissatisfied 17

Very dissatisfied 11

TOTAL 42

Table 4.0(i) Rating of Services Received

From the analysis of the responses received, eleven small business

traders indicated they were very dissatisfied with the services

offered by the Kikuyu Town Council, seventeen indicated they

were dissatisfied, nine indicated they were satisfied and five

indicated they were very satisfied. Below is the analysis

represented on a pie chart.

2/30 X 360 = 42.9º

7/30 X 360 = 77.1º

12/30 X 360 = 145.7º

9/30 X 360 = 94.3º

45

4.1.3 Views Of Kikuyu Town Council

Below is the analysis received from Kikuyu Town Council. The

analysis was done according to the responses and summarized as

shown: -

The Council regulates small businesses through

ensuring that all business people intending to start

small businesses apply to the Council for

consideration.

The challenges encountered by the Council in

controlling small businesses are that owners of small

businesses hardly follow the laid down procedures

hence it becomes very hard to control them.

Unlicensed businesses affect the operations of the

Council through; denial of revenue, lack of a

functional budget and wastage of physical, time and

human resources in pursuit of offenders.

The Council does not have adequate personnel to deal

with unlicensed businesses and to deal with this

problem the Council is employing more personnel.

Services offered to the residents of Kikuyu area

include: maintenance of roads, cleaning of trading

centres and markets, providing clean water and a

sewerage system.

The council is of the view that the residents are

satisfied with the services they receive and they are

not satisfied with existence of small businesses.

46

The Council conducts surveys to establish where

unlicensed businesses are after every three months.

The residents do not volunteer information about

existence unlicensed businesses.

The main reasons leading to growth of unlicensed

businesses are; poverty, ignorance, lack of education

and lack of unemployment.

Measures taken to deal with unlicensed businesses

include; operators are arrested and charged, their

wares impounded and they are fined.

The Council experiences very much political

interference.

The individuals intending to start businesses should

accept to pay for licenses, apply for requisitions of

their businesses and inform the Council of illegal

operators.

Further analysis from the three types of questionnaires indicated

the following comments of the parties involved: -

1. Some small businesses create problems because

they are not regularly monitored by the Council

therefore not maintaining the required standards

and are not well planned and located in the

right places.

2. Poverty is the main reason leading to the high

growth rate of unlicensed businesses within the

society.

47

3. Influential people should not be allowed to

bend the law to suit their needs through taking

advantage of their positions.

4. Some Council employees take advantage of

those who are not aware of the license charges

and charge them higher than required.

5. The Council should sometimes offer incentives

like tax holidays to enable businesses perform

better, as a way of supporting them.

6. The Council can be assisted with outside

financing especially with equipments and donor

funds projects to enable it deal with unlicensed

businesses.

48

CHAPTER FIVE

5.0 SUMMARY AND CONCLUSIONS

5.1 Findings of the Study

The purpose of this study was to establish how unlicensed

businesses come into existence and to find out how the members of

the society feel about the existence. The study was guided by the

research questions. A combination of questionnaires, observations

and personal interviews were used so as to be accurate and so as to

get the most valid findings. The following is a summary of the

findings from the society who are the customers of small

businesses: -

Most of the customers indicted they purchase from

small businesses operators the various items they

required everyday.

Most customers indicated that small businesses are

important to the society in various ways.

Most of the customers indicated that they get

satisfaction from the products they purchase from

small business operators.

Majority of the customers indicated that unlicensed

businesses are not important to the society.

Most customers indicated that some of the small

businesses were in a poor state.

Most customers indicated that some of the small

businesses create problems in the society through

selling illegal items and expired products.

49

Most customers indicated that no action has been

taken by the Council to improve the services delivered

by the small businesses.

Most customers indicated that the council should take

action to prevent unlicensed businesses from

operating.

Summary of the findings from the small business traders within the

Kikuyu area are as follows: -

Majority of the small business traders indicated they had

operated their businesses for a period of over a year.

Most of the small business traders indicated they liked

and enjoyed their businesses despite how their status

A few small business traders indicated they did not like

their businesses and they gave the following reasons that

made them dislike their businesses: -

1. They work a lot but earn very little profit,

2. Their jobs are prone to various risks,

3. Some of their jobs are difficult,

4. Some jobs bring stress,

5. Some of their jobs are seasonal.

Most of the small business traders indicated they serve less

than fifty customers in a day.

Most of the small business traders indicated that they were

dissatisfied with the services offered by the Council.

50

Most of small business traders indicated that the Council

rendered poor services to them.

Majority of small business traders indicated that the major

problem they encountered in running of their businesses was

financial constrains other problems include: -

1. High license fee,

2. Poor inaccessible roads,

3. Monopoly of business,

4. Low profit margin,

5. Unpaid debts by customers,

6. Slow moving stock often leading to expiry,

7. Operating in very unhygienic environment.

5.2 Recommendations

The Council should apply stiff measures on unlicensed

businesses to ensure that they do not have room for

existence and also this will enable small business traders to

compete fairly.

The Council should de-ploy all the non-performing and

undedicated officers in order to win confidence of the local

business community and also to avoid loss of Council’s

revenue to individuals.

The Council should conduct regular check to see to it that all

businesses operating are licensed, are not selling illegal

products and are observing high standards of hygiene.

51

In an effort to improve their efficiency, they should try to

license businesses according to size and the profit margin

that will make it affordable even for small business

operators to acquire licenses.

The Councils should render their services effectively

through supervision of workers and use of the proper

equipments like brooms, buckets, and detergents.

The Council should improve human relationship with

members of the society, which will help in ensuring that

members of the society are volunteering important

information to the Council Authorities.

The management of the Council should ensure that it has a

well-trained staff at all levels of operations who are able to

handle and solve issues in the right way.

The Council should relocate all the business traders who are

operating along the road reserves and offer an alternative

area where they will not be a threat to security and will be

possible to monitor and license them efficiency.

Hawking should be prohibited and alternative location to

conduct business offered in an orderly and suitable

arrangement. The places can have a fence round it and

hawkers can pay on entry.

The management of the Council should simplify the

procedures and processes involved in acquiring a license so

as to make it easier for businessmen including renewal

invitation by posting notices to traders.

52

The Council should create awareness of unlicensed

businesses to members of the society and carry out a

campaign against them, which will facilitate in eliminating

them.

Since small businesses are important to the society, the

council should support them because this will help in

discouraging unlicensed businesses. The can be organized

and educated to form self-help groups under community

Development Officers (C.D.O)

The Council should make sure it has enough qualified

personnel to carry out the duties that it should undertake.

This will help avoid overworking certain employees leading

to demotivation and neglecting of some areas.

In cases where the Council experiences political

interference, they should notify higher authority to make

sure that the issue is solved as soon as possible to promote

effectiveness and efficiency.

The Council should improve and maintain the road network

to improve accessibility of the regions. This will help very

much especially in growth of various areas and linking of

road transport to different parts.

The Council should aim at creating trading areas so as to

enable it eliminate businesses located along road reserves

and on the other hand streamline collection of revenue.

The Council should delocalise some of their offices and

distribute them evenly to avoid making some business

owners travel long distances to acquire a license. They can

operate a licensing kiosk in every shopping centre.

53

Lastly, the Council should embrace the use of new

technology in handling documents and relevant data in

communication and in carrying out its duties for efficiency.

5.3 Recommendations For Further Research

The research recommends that the Kikuyu Town Council should form a

research team to carry out the following: -

The importance of educating business operators,

The role of close interaction between the Council and the society,

Deliver of services by the Council to the operators,

The Council’s role in customer satisfaction,

The role of the society in elimination of unlicensed businesses.

In conclusion all factors put into consideration; the research shows that

the existence of unlicensed businesses has a negative effect on efficiency

of the Council. The Council Authority have been trying to eliminate them

but for it to be possible, it is important to consider the recommendations

given in this research, apply effective measures and put in place licensing

mechanisms to avoid negative impact reflected by the current procedures

which result to huge losses of revenue collection.

54

BIBLIOGRAPHY

1. Aina S. : (1982) International Review of

Administrative Science

XLVIII, 70-6.

2. Benhardt Kenneth L. : (1978) cases in Marketing

Management,

IRWIN, Boston, USA.

3. Blunt P. and Popoola O. : (1985)Personnel Management in

Africa,Longman Inc, New

York.

4. Caiden, G.E and Caiden M.S : (1977) Public Administration

Review 37, 301-9.

5. Cole G.A. :(1999) Management EALBS,

London.

6. Daily Nation, May 6 2003, :Mayor welcomes Delegates to the

UN- HABITAT Governing

Council, Nation media Group

Limited, Nairobi.

7.Hill C.W.L and Jones R.G. :(2001) Strategic Management

Theory, Houghton Mifflin Co,

Boston N.Y 5th E.

8. Koontz O’ P. and Weihrich : (1984) Management,Mc Graw-

Hill, New York.

9. Samuelson P.A. and Nordhaus:(1995) Economics,Mc Graw-Hill

N.Y, USA 15th E.

55

10. Stewart and McGoldrick :(1996) Human Resource

Development, Pitman, London,

Great Britain.

11. Watkins R.I. :(1997) Retailing and Financial

Services, Institute of Financial

Services, Kent, U.K.

56

APPENDIX I

QUESTIONNAIRE

ON

EVALUATION OF THE PERCEPTION OF CUSTOMERS ON

SMALL BUSINESSES AROUND THE KIKUYU AREA

1. Do you purchase items from small business operators?

(Tick One)

Yes

No

2. Why do you buy from small business operators?

i.

ii.

iii.

iv.

v.

3. Do their products satisfy your needs like other products?

Yes

No

4. What is your feeling about small business in the society?

5. (a). Do some of the small businesses create problems within Kikuyu

Town?

(Tick one) Yes

No

57

(b). If yes, give examples of the problem?

6. Do you think unlicensed businesses are important to the society?

( Tick One)

Yes

No

7. In your view what action should be taken by the Kikuyu Town Council

to improve their services?

8. What do you think are the major challenges that make people operate

unlicensed businesses?

i)

ii)

iii)

iv)

(v)

9. What action should the Kikuyu Town Council take to prevent

unlicensed business from operating?

i)

ii)

iii)

iv)

(v)

58

APPENDIX II

QUESTIONNAIRE

ON

EVALUATION OF THE VIEWS OF SMALL BUSINESS

TRADERS WITHIN KIKUYU AREA

1. What kind of business do you operate?

2. For how long have you operated this business?

(Tick One) Less than a year

1 month to 3 months

3 months to 6 months

6 months to 1 year

Over a year

3. (a). Do you like this business?

(Tick One) Yes

No

(b). If no, what are some of the reasons that makes you hate your

business?

4.About how many customers do you serve in a day?

(Tick One) Less than 50

More than 50 but less than 100

More than 100 but less than 150

More than 150

59

5. What are the major problems you encounter in running of your

business?

6. What service are you given by the Kikuyu Town Council?

i

ii

iii

iv

v

vi

7. What problems do you encounter in applying for license?

i

ii

iii

iv

v

vi

8. How do you feel from service you get from the Council?

(Tick One) Very satisfied

Satisfied

Dissatisfied

Very dissatisfied

60

APPENDIX III

QUESTIONNAIRE

ON

EVALUATION OF THE VIEWS OF KIKUYU TOWN COUNCIL.

1. What are the departments in Kikuyu Town Council?

i)

ii)

iii)

iv)

(v)

2.How do you regulate small businesses?

3. What are the challenges encountered in controlling small businesses?

4 (a) Do you encounter the challenges of unlicensed businesses?

(Tick One) Yes

No

5. (a) Do you have adequate personnel to deal with unlicensed

businesses?

(Tick One) Yes

No

(b) If No, what measures are you taking to overcome this problem?

6.What services do you offer to the residents of Kikuyu area?

i

ii

iii

61

iv

v

vi

7. What do you think is their level of satisfaction compared to the

services they receive?

(Tick One) Very Satisfied

Satisfied

Dissatisfied

Very Dissatisfied

8. Are the residents satisfied with the existence of small businesses?

(Tick One) Yes

No

9. What assistance do you need to deal with unlicensed businesses?

10. (a) Do you conduct survey to establish where unlicensed businesses

are? (Tick One) Yes

No

(b) If Yes, how often?

Tick One After 3 months

After 6 months

After 12 months

After over a year

11. Do you residents volunteer information about existence of unlicensed

businesses?

(Tick One) Yes

No

12. From your experience, what are the main reasons that lead to growth

of unlicensed businesses?

62

i

ii

iii

iv

v

vi

13. What are the measures you have taken to deal with unlicensed

businesses?

i

ii

iii

iv

v

vi

14. (a) Do you experience political interference in your duties?

(Tick One) Yes

No

(b) If yes, how can you place extent of the interference?

(Tick One) Very Much

Much

Little

Very Little

15. What do you think the residents should do to enable you deal with the

problem of unlicensed businesses?

i

ii

iii

iv

63

APPENDIX IV

TIME PLAN – YEAR 2003.

ACTIVITY PERIOD

Preparation and submission of the proposal March – May

Questionnaire development and data

collection

May

Data analysis May - June

Report writing and typing June – July

Printing, binding and project submission July August

64

APPENDIX V

BUDGET PLAN

PROJECT PROPOSAL

ITEM AMOUNT (KSHS)

Stationery 900

Photocopying, typing & binding 2,500

Overhead expenses 600

Transport 1,200

TOTAL 5,200

MAIN PROJECT

ITEM AMOUNT (KSHS)

Stationery 2,400

Photocopying typing printing

binding

4,500

Data collection 1,300

Overhead expenses 1,100

Transport 1,700

TOTAL 11,000

65