Ruth Thesis Libre

8/9/2019 Ruth Thesis Libre

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CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Small and Micro Enterprises (SMEs) play an important economic role in many countries.

Over the past 10 years, economic planners have realized the importance of the small enterprise

sector in achieving economic development. Many governments and development organizations

have focused on the promotion of SMEs as a ay of encouraging !roader participation in the

private sector. Micro, small and medium"sized enterprises (SMEs) play a central role in the

European economy. #hey are a ma$or source of entrepreneurial s%ills, innovation and

employment. &n the enlarged European 'nion of countries, some * million SMEs provide

around + million $o!s and represent - of all enterprises. (European ommission) /or

instance in ritain SMEs are the !ac%!one of the ritish economy (2oe, 003). 4ccording to

the 5epartment for usiness, Enterprise 6 2egulatory 2eform (E22)7s Enterprise 5irectorate

4nalytical 'nit, the '8 economy is - SMEs, employing 19.*m people, out of a or%ing

population of appro:imately *0 million. &n terms of '8 turnover and ;ross 5omestic


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enterprises (SMEs) are the !ac%!one of Singapore7s economy, contri!uting 9+- of the country7s

;5< and generating >- of availa!le $o!s.(SM',003)

#he promotion of SMEs and, especially, of those in the informal sector is vieed as a via!le

approach to sustaina!le development !ecause it suits the resources in 4frica. SMEs are the main

source of employment in developed and developing countries ali%e, comprising over 0- of

4frican !usiness operations and contri!uting to over 0- of 4frican employment and ;5).

?oever many SMEs remain outside the formal !an%ing sectors yet they play a %ey role in

the economy of many countries. &n 8enya, they create employment at lo levels of investment

per $o!, lead to increased participation of indigenous people in the economy, use mainly local

resources, promote the creation and use of local technologies, and provide s%ills training at a lo

cost to society (&=O, 13). Estimates are that there ere a!out 00,000 small and micro

enterprises esta!lishments employing million 8enyans and generating a!out 19 per cent of the

country7s ;5< (5olman, 19). &t is also stated that in 8enya this sector accounted for 0- of

the ;5< in 1 (S et al, 1) and >9- of the ur!an employment !y 00 (8are%ezi and

Ma$oro, 00). 4ccording to the Economic Survey (00>), the sector contri!uted over 0 percent

of ne $o!s created in the year 00. &n addition to its importance in creating $o!s, the small

enterprise sector contri!utes **- of the value"added in manufacturing and the retail trade in

8enya (Onyango and #omec%o, 1).

5espite their significance, past statistics indicate that three out of five !usinesses fail ithin

the first fe months of operation (8enya @ational ureau of Statistics, 00+). ?oever, it is

generally recognized that SMEs face uniAue pro!lems, hich affect their groth and

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profita!ility and, hence, diminish their a!ility to contri!ute effectively to sustaina!le

development. Many of the pro!lems cited have implications for technology choice. #hese

pro!lems include lac% of access to credit, inadeAuate managerial and technical s%ills, lo levels

of education, poor mar%et information, inhi!itive regulatory environments, and lac% of access to

technology (?arper 1+9 &=O, 13 ?ouse et al. 11). &nfrastructure as it relates to provision

of access roads, adeAuate poer, ater, seerage and telecommunication has !een a ma$or

constraint in the development of SMEs (o%ea, 5ondo and Mutiso, 1). 4ccording to 4my:

(00), one of the most significant challenges is the negative perception toards SMEs. ).

4s ith many developing countries, there is limited research and scholarly studies a!out the

SMEs sector in 8enya particularly SMEs in 8isumu ton. 4ccording to an SME aseline

Survey (1), fifty si: per cent of formal !usinesses are located in the @airo!i region .On the

other hand, informal sector enterprises are more idely distri!uted, ith the ma$ority found in

the rural areas. #his survey highlights the regional distri!ution of enterprises in 8enya. ?oever

this data is generalized and does not give information specific to 8isumu ton. (See the ta!le1

!elo)B

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Ta!e 1" Infor#a!$ %&cro and '#a!! Enter(r&ses

Reg&on No. of Enter(r&ses )

@airo!i and Mom!asa

Other Ma$or #ons

2ural tons

2ural 4reas

*,>>3

13*,199

,+0

1,1++,*>

1*.*

10.

.+

+0.1

Tota! 1$*+,$-- 1//

SourceB @ational MSE aseline Survey 1, S, 8"2ep and &E; E:trapolated to 00

4ccording to this ta!le, almost to"thirds of all SMEs are located in the rural areas and only

one"third are found in ur!an areas (even hen ur!an areas are defined to include small rural

tons). Of these, a!out 1+ per cent are located in @airo!i and Mom!asa. Other ma$or tons

account for 10.- of the total SMEs in 8enya. Such tons include 8isumu, Eldoret and @a%uru.

;iven the importance of SMEs to the 8enyan economy and the e:posure to ris%s oing

to their location, there is need to conduct this study to investigate the factors influencing the

success or failure of SMEs in 8isumu ity and to understand ho SMEs manage the challenges

they face

1.0 'tate#ent of the Pro!e#

Small and medium enterprises are the ma$or agents of economic groth and

employment. &n 8enya, over si:ty percent of small !usinesses are estimated to fail each year

(8enya @ational ureau of Statistics, 00+). Mead (13) o!serves that the health of the

economy as a hole has a strong relationship ith the health and nature of SMEs. ?oever,

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despite government efforts in 8enya to promote SMEs activity, not much progress seems to have

!een achieved, $udging !y the performance of the informal sector. Chen the state of the macro

economy is less favora!le, !y contrast, the opportunities for profita!le employment e:pansion in

SMEs are limited. 'nfortunately, there is very little information on ho the small !usiness sector

is structured. Starting and operating a small !usiness includes a possi!ility of success as ell as

failure. ecause of their small size and the e:posure to ris%s oing to their location, a simple

management mista%e is li%ely to lead to sure death of a small enterprise hence no opportunity to

learn from its past mista%es.

4ccording to the 5epartment of Micro" and Small"Enterprise 5evelopment (5MSE5) in

the Ministry of =a!our and ?uman 2esource 5evelopment, in 00 there ere a!out .3 million

SMEs employing .1 million people (Stevenson and St"Onge, 00, p. 9). #he dramatic increase

in the contri!ution of SMEs to employment as largely attri!uted to retrenchment in !oth pu!lic

and private sectors. ?oever, even ith this groing percentage, not many micro"enterprises

gro into small"scale enterprises to significantly contri!ute to employment creation and

economic groth.

#his study see%s to investigate the factors that influence the performance of small

!usinesses in order to develop an understanding of the dynamics of SMEs not only for the

development of support programmes and groth strategies for SMEs, !ut also for the groth of

the economy as a hole. Such information is crucial in the evolution of appropriate policies for

promoting SMEs development and increasing the sector7s impact on poverty reduction and

overall development. #his study see%s to find out the factors influencing the success or failure of

SMEs in 8isumu ity so as to !etter understand hy they fail or succeed and ho they can !e

improved. #his ill promote adoption of necessary measures and a plan of action to regulate

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this sector. #he significant role of small !usiness in the 8enya economy suggests that an

understanding of their performance is crucial to the sta!ility and health of the economy. #he

government also needs a policy frameor% ithin hich this sector can !e regulated. #his study

ill therefore scrutinize the factors that influence either positively or negatively on the

performance of SMEs situated at 8isumu main !us par% and e:tending to enterprises situated

ithin a radius of 900 meters around the !us par%

1.3. Pur(ose of the 'tudy

#he purpose of this study as to investigate factors influencing the performance of SMEs in

8isumu ity.

1.4. Oect&2es of the 'tudy

#he study as guided !y the folloing o!$ectivesB

1) #o determine the relationship !eteen the characteristics of SMEs in 8isumu ity and

their performance

) #o investigate the socio"cultural !ac%ground of entrepreneurs that influences the

performance of their !usinesses

3) #o e:amine the legislations and ;overnment policies and ho they influence the

performance of SMEs in 8isumu city

4) #o esta!lish the challenges facing SMEs in 8isumu ity and ho these challenges

influence their performance.

) #o determine the strategies employed !y SMEs in countering the challenges that they

face.

1.5. Research 3uest&ons

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#he study as guided !y the folloing research AuestionsB

1) Chat is the relationship !eteen the characteristics of a !usiness enterprise in 8isumu

ity and its performanceD

2) #o hat e:tent does the socio"cultural !ac%ground of an entrepreneur affect the

performance of the !usiness enterprise in 8isumu ityD

*) ?o does ;overnment


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1.7. Bas&c Assu#(t&ons of the 'tudy

#he study as !ased on the folloing assumptions

&t is assumed that all !usinesses operating ithin the !us par% have duly !een registered and are

thus operating legally. &t is also assumed that the licensing office records of the 8isumu

Municipality are updated and it ill !e proper to use them to dra a representative sample

1.-. 4&tat&ons of the 'tudy

#he study encountered the folloing limitationsB

5ue to time and resource constraints the study covered only the SMES located around the !us

par% in 8isumu city. #he haphazard and disorganized nature of the !usinesses operating ithin

and around the !us par% hampered the collection of data. #his as countered !y hiring more

research assistants so that more mo!ile !usinesses ere covered ithin the first day of data

collection. #his study also faced entrepreneurs ho ere unilling to co operate ith

intervieers.

1.9 . De!&tat&ons of the 'tudy

#he study as delimited to SMEs operating ithin 8isumu main !us par% as it has a

conglomeration of many SMES of different types. 8isumu !us stage is more accessi!le and

convenient for this study as it !rings together various types of !usinesses ithin a small area.

#he study as also delimited to the use of Auestionnaires, intervies and o!servation schedule

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1.1/. Def&n&t&on of '&gn&f&cant ter#s

5actors &nf!uenc&ng '%Es age, gender, size and type of !usiness, e:perience

4eg&s!at&2e (rocesses acAuisition of permits, ta: procedures

'!as space in the mar%et or stage for !usiness

'#a!! and #&cro enter(r&ses enterprises ith less than 0 employees

'ta!!s !uilt up !usiness structure

Entrepreneurial success: &n this study entrepreneurial success ill !een measured

!ased on profit from the !usiness.

1.11. Organ&6at&on of the 'tudy

#his pro$ect research report is organized into three chaptersB hapter one hich is the

introductory chapter deals ith the introduction, pro!lem statement, purpose of the study,

o!$ectives of the study, the research Auestions, the study hypotheses, significance of the study,

limitations and delimitations of the study, !asic assumptions of the study, definition of

significant terms and the organization of the study. hapter to contains the revie of related

literature. #his is presented in three main themesB factors that relate to the enterprise, factors

related to the entrepreneur the challenges facing entrepreneurs and the strategies that they adopt

to counter the challenges. &t also contains the perceived theoretical and conceptual frameor%.

hapter three contains the methodology that as used to anser the research Auestions and

su!seAuently the research o!$ectives.

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CHAPTER T7O

4ITERATURE RE8IE7

0.1 Introduct&on

#his chapter revies the availa!le related literature. #he literature is revieed under the

folloing headingsB haracteristics of SMEs, Socio" cultural factors influencing SMEs,

=egislative processes of SMEs, hallenges facing SMEs and Strategies employed !y

entrepreneurs in countering the challenges

0.0 Character&st&cs of '%Es and Enter(r&se Perfor#ance

4ccording to 2ec%lies,(001) Many typical characteristics of SMEs are determined !y

factors li%e size of organization or independent onership (family of small group of people, age

and size of the !usiness and its location. #his study ill e:amine these factors do determine the

e:tent to hich they impact on the performance of SMEs operating in 8isumu ity7s main !us

par%.

0.0.1$ I#(act of Age of the 5&r# on Bus&ness Perfor#ance

Study findings support consideration of age of an organization as a factor that may affect

firm survival and groth andFor organizational decline and death the lia!ility of neness that

ma%es ne SMEs face a greater ris% of survival than older firms is that ne firms do not have

the e:perience, access, lin%s, reputation or the legitimacy of the older firms, leading to limited

access to e:ternal resources (4my:, 00). Mc


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facilities. SME success also depends on neigh!orhood appearance and continued or maintained

future !usiness operations in that location#ustin, 001 as Auoted in #hapa et al (003)

Orthodo: regional development theory stresses that ur!an areas have favora!le supply"side

conditions for firm development. (8ee!le, 1+) /or e:ample, SMEs located in ur!an areas

typically have a relative ease of access to customers and the inputs reAuired (i.e. finance,

premises, technology, etc.) to produce goods or services. SMEs located in ur!an areas may

!enefit from Gagglomeration economiesH and spatial e:ternalities (i.e. specialized infrastructures,

information, netor% of suppliers, specialized la!our, specialized %noledge, concentration of

e:isting e:porters, etc.) (Malm!erg et al., 000


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Orthodo: regional development theory fails to adeAuately e:plain the counterfactual case

of the e:istence of successful SMEs located in peripheral and resource"sparse environments,

hich can !enefit from protective greenhouse conditions (i.e. loer densities of economic

activity and a smaller num!er of potential competitors). Chile SMEs located in peripheral (and

rural) areas may encounter greater resource constraints than ur!an SMEs, this environmental

resource scarcity, according to Iaessen and 8ee!le (1), in fact stimulates them to e:hi!it

greater proactive entrepreneurial !ehavior. #ighter e:ternal selection pressures generally ma%e it

more difficult for a firm to !e esta!lished in a resource"sparse environment. /urther, only the

!est among potential entrepreneurs may attempt to esta!lish and develop !usinesses. #his study

ill see% to find out hether the location of a !usiness has any influence on the performance of

the SMEs located at 8isumu7s main !us par% and its environs and if so to hat e:tentD

0.9 I#(act of the 'oc&o: Cu!tura! Background of an Entre(reneur on the Bus&ness

erryman J (13*) suggested that the personal characteristics of the !usiness oner

interacting ith managerial defects produce ea%nesses in the firm. #heng and oon did an

e:ploratory study on factors, hich affects the failure of local small and medium enterprises and

found that the entrepreneurs7 personal attri!utes and shortcomings had a significant impact on

the performance of a !usiness enterpriseB

2.3.1 I#(act of Entre(reneur;s Age on us&ness (erfor#ance

4ccording to onte et al, (00) Empirical studies !ased on individual data have found

an inverse '"shaped relationship !eteen age and the decision to start a !usiness, using changes

in the age distri!ution of the population of estern ;erman regions over time, they foundKin

accordance ith micro level analysesKan inverse '"shaped relationship !eteen the regional

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age structure and start"up activity in a region. Moreover, their findings suggest that the age"

specific li%elihood of !ecoming an entrepreneur changes ith the size of the age cohort, pointing

to the e:istence of a relationship !eteen the age of the entrepreneur and the performance of the

enterprise.

4lthough Limmerrer and Scar!orough (13) point out that most of entrepreneurs in the

'nited States start !usiness during their *0s and 90s, many researchers found that there is no

limit of age for their entrepreneurial aspirations. 4ge variation at the start of !usiness seems to

have no direct relation to !usiness success. 4ccording to Sta (11), at the start of any !usiness

age is not a decisive factor, !ut ith enough training and preparation, the earlier someone starts

!usiness the !etter. Sta (11) also notes that age is related to !usiness success if it includes

!oth chronological age and entrepreneurial age. #his means that the older an entrepreneur is, the

more e:periences in !usiness he has. 4ge thus implies e:tensive e:perience. 4

recent !aseline survey of small !usinesses shos that female onership, informality and

sole proprietorship have negative effects on the a!ility to generate revenue. Such a!ility,

hoever, increases ith the entrepreneur7s age, educational achievement and mem!ership

in !usiness support groups (8imuyu, 003)

&t is an o!served factor that young people are very aggressive, impatient and ready to ta%e

ris%. ?ence this factor may influence on !usiness practices of entrepreneurs. #he individuals are

socialized to !ehave in ays that meet ith the approval of their role set. #o ta%e an e:ample, a

young person ith a !usiness oning parent may ell !e e:pected to $oin the family !usiness

and not to do so ould create a vacuum in the !usiness. &f e accept that entrepreneurs reAuire

ideas, opportunities, resources s%ills and motivation for success, then the social structures and

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situations to hich they are e:posed ill impact on the choice process . Simon (13B) found

that actual and perceived entrepreneurial s%ills are acAuired overtime and conseAuently age has

an impact on entrepreneurship. /or e:ample it has !een suggested that many people age thirty or

less may not have acAuired sufficient organizational e:perience hile those age forty five or

more may no longer posses the acAuired energy. ?oever, =ongenel%er. M. (11B1+) found

that there are no hard and fast rules concerning the right age for starting a !usiness . #his study

therefore see%s to esta!lish the relationship !eteen the age of the !usiness oner and the

success or failure of the !usiness.

0.9.0 Re!at&onsh&( of E) found that *0-

of successful entrepreneurs have no or% e:periences, compared to $ust *- of unsuccessful

entrepreneurs (significant at p 0.01). #his means that e:perience is not critically important for

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!usiness performance. =ee and 5enslo (00) in their study found that lac% of capital and lac%

of e:perience is one of the ma$or factors affecting entrepreneurial performance.

2.3.3 I#(act of Educat&on on Perfor#ance of '#a!! Bus&nesses

Education and s%ills are needed to run micro and small enterprises. 2esearch shos that

ma$ority of the lot carrying out micro and small enterprises in 8enya are not Auite ell eAuipped

in terms of education and s%ills. Ma$ority of those ho run SMEs are the ordinary lot hose

educational !ac%ground is anting. ?ence they may not !e ell eAuipped to carry out

managerial routines for their enterprises. 8ing and Mc;rath,( 00) in their study suggest that

those ith more education and training are more li%ely to !e successful in the SME sector. 4s

such, for small !usinesses to do ell in 8enya,entrepreneurs need to !e ell informed in terms

of s%ills and management. SMEs in &# appear to !e doing ell ith the sprouting of many

commercial colleges offering various computer applications. /urther, studies sho that most of

those running SMEs in this sector have at least attained college level education (Can$ohi and

Mugure, 003).

4s culture is a learned !ehavior, formal, non formal and informal education plays an

important role in transferring cultural values from one generation to another. ?oever, ?agen E.

E. (1>) said that education plays a su!sidiary role in promoting entrepreneurship, !ecause

entrepreneurs are !orn. &t is often articulated that the supply of entrepreneurs ill ultimately !e

increased more if aareness of the feasi!ility and desira!ility of starting a !usiness is esta!lished

at a young age. #hus education system is assisted to foster support and encourage those

interested in %noing hat it is li%e to run a !usiness. &n Sri =an%a, Sudatta 2anasinghe, (1>)

noted that, most of the successful entrepreneurs have not gone through higher education or

formal courses in entrepreneurship. Studies also sho that, only a fe of the entrepreneurs have

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had family !usiness connections at the time they started a !usiness. ) involving entrepreneurs in Singapore

disclosed that successful entrepreneurs have higher education levels compared to that of

unsuccessful entrepreneurs ( p 0.01). Seventy percent of successful entrepreneurs are university

graduated, hile *- are not.

4ccording to Meng and =iang (1>), Sta (11), and ?olt (1), after entering the

entrepreneurial orld, those ith higher levels of education are more successful !ecause

university education provides them ith %noledge and modern managerial s%ills, ma%ing them

more conscious of the reality of the !usiness orld and thus in a position to use their learning

capa!ility to manage !usiness.

Similarly, =ussiers and ). ?oever, Minniti and ygrave (00*)

have stated that people ith more education are not necessarily more entrepreneurial. #hapa

(00+) in his study in @epal has found that the education has positive effect on entrepreneurial

success. #his study ill thus see% to esta!lish the relationship !eteen the educational levels of

entrepreneurs and the performance of their !usinesses.

0.9.= I#(act of >ender on Perfor#ance of Bus&ness

4 survey conducted !y Colf (001) in South 4frica, 8enya and #anzania notes that

SMEs provide employment to more than 0 per cent of the income"earning population. #he

study estimates that in 8enya small enterprises generate 1N19 per cent of the gross domestic

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product. 8enya7s economic landscape also reflects the dominance of SMEs as the most dynamic

aspect of the private sector (i!id.). One significant characteristic of the sector is that as it has

gron, it has also !ecome an important employer of the female la!our force in the country.

4ccording to the 8enya 2ural Enterprise


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determination of many of the e:ternal manifestation of culture.H (Iern terpstra and @anaya%%ara.

;, (1) o!served that in the Sri=an%an cultural conte:t, the child rearing practices as ell as

values transmitted !y the elders to the children have created a dependence syndrome ma%ing the

child continuously depended on the family. Sri =an%an family !ased value system as ell as

religious values is not favora!le in generating an individual achievement oriented or% ethic

similar to the


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environment for small enterprise groth including analysis and ad$ustments to the regulatory

environment that has !een a hindrance to prospective small !usiness oners. /ormal small

enterprise development policy encompasses entrepreneurship development programs under a

heading @on"/inancial


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Many 4frican countries are aimed at removing heavy policy distortions, hich have !een

vieed as detrimental to the groth of the private sector. S4


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credit (>.1 per cent) came from informal savings and credit associations, otherise %non as

2otating Savings and redit 4ssociations (2OS4S). #his as in line ith other findings that

only 9 per cent of accessed credit as o!tained from formal financial channels, such as @;Os,

micro"finance schemes, commercial !an%s and Savings and redit ooperative Societies

(S4OS). 4t the same time, there ere a!out 10 organizations ith credit programmes for

MSEs in 8enya of these 1*0 ere @;Os. #hese organizations serve all regions in the country

although most of them are located in ur!an areas.

0. Cha!!enges 5ac&ng '%Es &n @enya

&t is generally recognized that SMEs face uniAue challenges, hich affect their groth

and profita!ility and hence, diminish their a!ility to contri!ute effectively to sustaina!le

development these includeB lac% of Managerial #raining and E:perience, &nadeAuate Education

and S%ills, =ac% of redit, @ational


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&n most of the 4frican nations, 8enya inclusive, the challenge of connecting indigenous

small enterprises ith foreign investors and speeding up technological upgrading still persists

(Muteti, 00). #here is digital divide !eteen the rural and ur!an 8enya. Cith no poer supply

in most of the rural areas, it is ne:t to impossi!le to have &nternet connectivity and access to

information and netor%s that are core in any enterprise. #hus technological change, though

meant to !ring a!out economic change even among the rural lot, does not appear to anser to the

plight of the rural entrepreneurs.

0.* Theoret&ca! 5ra#e?ork

#he stochastic theories are !ased on the stylized fact that firm groth and firm size are

independent. #he results of the stochastic models give a theoretical !ase to the o!servation

freAuently %non as ;i!rat7s =a (?art and ). ;i!rat7s =a, according to aves

(13), states that if groth rates of firms in a fi:ed population are independent of their initial

sizes, the variance of groth rates shos no hetero"s%edasticity ith size, and if serial

correlation of groth rates is a!sent, then the concentration of the population increases ithout

limit. Simon and onni (13) found evidence to support ;i!rat7s =a. More details on the

empirically"esta!lished e:ceptions to, and e:tensions of, ;i!rat7s =a can !e found in Evans

(13+a, 13+!), ?all (13+), 8umar (13), oeri (13), andCagner (1). 4 recent paper !y

Segarra and alle$on (00) define ;i!rat7s la so that a firm7s groth in each period of time is

random and independent of its size. =ater studies found serious fault ith the earliest versions of

stochastic theory.


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uncertainty, and none is truly dynamic. 2ecent econometric and theoretical advances regarding

;i!rat7s =a can !e found in Sutton7s (1+) survey. Other advances in this field include

eccchetti and #rovato (00),Ceiss (13), 4lmus and @erlimger (000), and Segarra and

alle$on (00).

0.+. Conce(tua! 5ra#e?ork

#his study as guided !y the folloing conceptual frameor%B

5&g 0.1. The re!at&onsh&(s et?een the 2ar&a!es.

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&ndependent Iaria!les

"4ge of entrepreneurF!usiness

"location

"#ype of !usiness

";ender

"2eligion

"Education

"Marital Status

"/amily size

Moderating Iaria!les

"8noledge (mar%ets,

Ffinance)

"S%ills (management)


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#he independent varia!les are the factors hich influence the performance of a small and micro

enterprise. #hese include factors that are inclined toards the !usiness oner such as age,

gender, education, training and e:perience. #hese coupled ith characteristics of the !usiness

enterprise such as size, source of capital, no. of employees can impact on the performance of the

!usiness(dependent varia!le) #he !usiness oner or entrepreneur may possess certain inherent

%noledge, s%ills and practices hich may influence a !usiness enterprise either negatively or

positively. #hese include %noledge of the mar%ets, management, and the trends in the particular

type of !usiness. #hese factors moderate the performance of the enterprise. ;overnment polices

on the ground and legislative processes also have an impact on the SMEs. #his study sought to

determine ho all these factors interplay among themselves and ho they affect the performance

of the SME sector in 8isumu.

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CHAPTER THREE

%ETHODO4O>

9.1 Introduct&on

#his chapter descri!es the methodology that as used in conducting the study. #his

includesB #he research design target population, sampling design and procedures research

instruments for data collection the research process validity and relia!ility of the research

instruments as ell as data processing and analysis techniAues.

9.0 Research Des&gn

@achmias and @achmias (1>) assert that research design refers to the master plan that ill

!e used in the study in order to anser the research Auestions. #his as a descriptive, study that

as concerned ith finding out factors influencing the performance of SMEs in 8isumu ity.

4ccording to 8erlinger (1+*) survey is a method that studies large population (universe) !y

selecting and studying the samples from the population to discover the relative incidence,

distri!ution and interrelations of sociological and psychological varia!les.

9.9 Target Po(u!at&on

&n this study the target population as all the 1*00 SMEs operating ithin the main !us

par% and e:tending to SMEs ithin a 900m radius from the stage. 4ccording to the Municipal

ouncil of 8isumu there are 1*00 SMEs operating ithin and around the main !us par%. (M8,

00). The study targets those enterprises ithin the main !us par% in 8isumu ity !ecause the

main !us par% has a concentration of various SME types and can thus !e representative of most

enterprise sectors in 8isumu ton.

25


26/77

9.= 'a#(!e '&6e Deter#&nat&on and sa#(!&ng Techn&ues

#his study used the stratified random sampling techniAue. Stratified random sampling is a

modification of random sampling in hich the population is divided into to or more relevant

and significant strata !ased on one or more attri!utes (Saunders, et. al., 00+). #his sampling

design ill !e used !ecause it is deemed suita!le for a highly concentrated geographical area

here face to face contact is reAuired and also here the population can !e divided into to or

more su! units !ased on certain internal characteristics. (Mugenda and Mugenda, 1). Each of

the stratum to hich the population is divided o!tains an eAual chance of !eing sampled. /urther,

8othari (009) recommends stratified random sampling !ecause it is accurate, easily accessi!le,

divisi!le into relevant strata and it enhances !etter comparison hence representation across

strata. #he advantage of stratified sampling is said to !e its a!ility to ensure inclusion of su!"

groups, hich ould otherise !e omitted entirely !y other sampling methods !ecause of their

small num!er in the population. Se%aran (00*) recommends that a sample size of more than *0

and less than 00 is appropriate for any social science research. &n general the size of the sample

in each stratum is ta%en in proportion to the size of the stratum i.e. proportional allocation

(Ci%ipedia, 010)

4ccording to the Municipal ouncil of 8isumu 2evenue office (M8, 010) the

!usinesses operating ithin and around the !us par% are 1*00. /or this study a 10- sample size

as used.


27/77

Ta!e 9.1 'a#(!e '&6e accord&ng to Re2enue Rates

Category Nu#er of '%Es 'a#(!e s&6e )

'ta!!s

'!as

Others

-==

0,=

1*0

-=

0,

1*

*=.,0

00.*1

10.=*

Tota! 19// 10, ,,.,,

9. Descr&(t&on Research Instru#ents

#he study used Auestionnaires, %ey informant intervies, o!servation and document

analysis as the main tools for collecting data.

9..1 3uest&onna&res

;ay (1>) e:plains that descriptive data are usually collected using Auestionnaires.

Others li%e Simons (13), ohen and Manion (13) have also identified Auestionnaires and

intervies as crucial instruments of data collection in descriptive research. #his study adopted

!oth the open ended and closed type of Auestionnaires, the Auestionnaires ere administered !y

the research assistants ho intervieed the respondents and recorded their responses.

9..0 Inter2&e?s

8ey informant intervies covering those ho deal ith SMEs in the areas of policy,

planning, enforcement, health reAuirement, credit, training and general management ere also

conducted. #hese as used to provide additional information to that gathered through

27


28/77

Auestionnaire and also to get vies on policies and regulations governing SMEs operations, and

ho they react to the regulatory environment.

9..9 D&rect Oser2at&on

5irect o!servation method as used in this study to capture pertinent information

regarding the location and organization of the mar%et and !us par%. #he o!servation as guided

!y a structured protocol to ensure gathering of pertinent information only. #his instrument

captured the size, location and type of the !usiness enterprise.

#hese primary data as supplemented !y secondary data derived from pu!lished !oo%s

and articles, as ell as unpu!lished annual reports and records from the department of trade.

9.*. 8a!&d&ty of the &nstru#ents

Ialidity of research instruments ensure scientific usefulness of the findings arising

thereof. (Sera%an 00* @achmias and @achmias, 1>). Ialidity is the e:tent to hich the

instruments ill capture hat they purport to measure (5ooley, 00*). Ialidity of the

instruments is critical in all forms of researches and accepta!le level is largely dependent on

logical reasoning, e:perience and professionalism of the researcher (ooper, 003). #o uphold

content validity, the researcher discussed the contents of the Auestionnaires ith the supervisors

!efore going to the field. #hese ensured that vague and unclear Auestions ere eliminated or

corrected

4 piloting as done on SMEs operating at 4hero !us stage. #he data o!tained during pre

testing as analyzed and the results used to develop dummy ta!les. #his as then given to the

supervisors ho read and made corrections and improvements to ensure its validity.

9.+. Re!&a&!&ty of the Instru#ents

28


29/77

#he relia!ility of a research instrument concerns the e:tent to hich the instrument yields the

same results on repeated trials. 4lthough unrelia!ility is alays present to a certain e:tent, there

ill generally !e a good deal of consistency in the results of a Auality instrument gathered at

different times. #he tendency toard consistency found in repeated measurements is referred to

as relia!ility (armines 6 Leller, 1+). #he enumerators and research assistants ere trained to

ensure Auality data is collected.


30/77

9.,. Data Co!!ect&on Procedure

2elevant authorization from !oth the Ministry of ?igher Education and #he 'niversity of

@airo!i as sought. 5ata as collected soon after a permit as granted !y the @ational ouncil

for Science and #echnology. 0 respondents ere intervieed in a pilot study. 5ata from these

respondents as analyzed and results interpreted for correctness of the research instruments.

4ppropriate modification as then done on the instruments. #his as then !e folloed !y data

collection. #his as done !y administering the guided intervies procedure to entrepreneurs

around the !us par%. #his as done in a period of to ee%s. O!servation as done through out

the period of data collection.

9.1/. Data Process&ng and Ana!ys&s

#he data entry process started as soon as Auestionnaires came from the field. Rualitative

data as analyzed manually !y first summarizing the information gathered and folloed !y

categorization and coding into emerging themes. #he data as then analyzed using a statistical

pac%age for social scientist (S


31/77


32/77

CHAPTER 5OUR

DATA PRE'ENTATION$ ANA4'I' AND INTEPRETATION

=.1 Introduct&on

#his chapter presents the results of the analysis of the responses made to the Auestionnaire

schedules administered to the sampled entrepreneurs operating !usinesses ithin the 8isumu

""""""""""""s and the intervie administered to the pro$ect managers. #he overall o!$ective of the

study as to find out the"""""""""

>ender of The entre(reneurs

#he gender of the respondents as analyzed and ta!ulated in the ta!le !eloB

Ta!e =.1. Res(ondents y >ender

;ender Stalls Sla! Others #otal

@o. - @o. - @o. - @o. -

Male

/emale

9- 1 >0- 1* >- *9 +-

11 - 3 90- + *- > 9*-

Tota! 0/ 1//) 0/ 1//) 0/ 1//) */ 1//)

SourceB On

32


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Ta!e . Age of Entre(reneurs

Education =evel stalls sla!s Others #otal -

19"

>"*9

*"99

9"

4!ove

10

3

0

0

11

9

9

0

1

>

9

>

+

1>

1

*

9

+

0

*

Tota! 0/ 0/ 0/ */ 1//

SourceB On

Ta!e . Re!&g&on of the Entre(reneurs


9

>

+

1>

1

9

+

0

*

33


34/77

Others 0 1 *

Tota! 0/ 0/ 0/ */ 1//

SourceB On

Ta!e . Educat&on 4e2e! of Entre(reneurs



35/77

SourceB On

5&g. 0. Educat&on 4e2e!s of Res(ondents

SourceB On

35

20%

30%

40%

0%

0%

N. West Ksm South C.seme east sem e

Loca

primary secondary co llege


36/77

#he level of education of the respondents as sought in order to esta!lish the level of aareness

due to formal education. #he figure a!ove shos that 9- of the pro$ect target !eneficiaries had


37/77

4ength of 'tay &n The Co##un&ty

#o esta!lish hether the respondents identified ith and understood the needs of community,

respondents ere as%ed ho long they had lived in the community. #he results ere as follosB

Ta!e +. 4ength of 'tay &n the Co##un&ty

ear South . Seme East Seme 8it Mi%ai #otal -

elo years

> N 10 years

4!ove 10 years

*

1

9

19

*

1

1>

10

9

1+

3

+

Tota! 0/ 0/ 0/ */ 1//

SourceB On

37

15%

10%

75%

20%

10%

70%

15%

5%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Y

e

a

r

s

South C.Seme East seme N. West Kisumu

Locations

5&g. 9 4ength of stay &n the Co##un&ty

below 5yeas 6 ! 10 yeas abo"e 10 yeas


38/77

#he freAuency ta!le revealed that those ho had stayed in the area for !elo yrs formed 1+-

of the total num!er of respondents. #hose ho had stayed in the area for !eteen >years and

10yrs formed 3- of the total num!er of respondents hile the ma$ority (+-) had !een staying

in the area for over 10 years. #his indicates that the ma$ority of the respondents understood the

needs of the community.

Usefu!ness Of Proects To Res(ondents

38


39/77

2espondents ere then as%ed ho useful the pro$ects selected so far ere to them and the

responses ta!ulated.

Ta!e -. Usefu!ness of 'e!ected Proects

?o useful South . Seme @. Cest

8isumu

East Seme #otal -

Iery useful

'seful

@ot useful

5on7t %no

10

+

*

0

*

1

0

10

9

1

*

9

1

1

*3

90

0

Tota! 0/ 0/ 0/ */ 1//

SourceB On

39


40/77

#his information as summarized in /igure * !elo.

5&g. 9. Usefu!ness Of Proects To Res(ondents

SourceB On

40

very usef

useful

not useful

38

!"

#"

!


41/77

90- of the respondents found the pro$ects useful to them. #he respondents in South entral

Seme and East Seme found the hief7s camps pro$ects useful !ecause they offered easy access to

information from the central government. #hey felt that the ommunity pro!lems and ar!itration

could easily !e reported to the administration. esides they ere seen as offering a convenient

place for community meetings and social activities. ?oever the respondents in East Seme ere

disappointed that the pro$ect, hich encompassed a hall, had not !een implemented.

#hose in @orth Cest 8isumu felt that the toilet as helpful !ecause it offered services to

everyone, even visitors, since private toilets ere not accessi!le to the pu!lic. ?oever they

o!served that the toilets ere useful mainly on mar%et days hen the demand as high.

Proect Pr&or&t&6at&on

2espondents ere further as%ed if they ould have rated the pro$ects initiated !y =4#/

committee as the most needed !y the community then.

Ta!e ,. Res(ondents Res(onse to 4AT5 Proects

41


42/77

East Seme

(cc)

South entral

Seme (cc)

@.Cest

8isumu (#)

#otal -

es

@o

10

10

>

19

+

1*

*

*+

*3

>

Tota! 0/ 0/ 0/ */ 1//

SourceB On

4n overhelming >- of the respondents felt that they ould have not chosen the respective

pro$ects hich the =4#/ decision committee had implemented. #his shos that there as lac%

of idespread consultation to esta!lish the priorities of the community mem!ers. &nfact

respondents in East Seme said that they ould have chosen a $uggery hich ould help the

community economically as there as enough sugercane planted in the area.

Ta!e 1/. Co##un&ty In2o!2e#ent In Proect 'e!ect&on

East Seme South entral Seme @. Cest

8isumu

#otal -

es 9 * 1

42


43/77

@o 1> 13 1+ 1 3

Tota! 0/ 0/ 0/ */ 1//

SourceB On

#he study also sought to find out if community mem!ers ere involved in the selection of the

pro$ects. 3- of the respondents said that they ere not involved in the pro$ects selection hile

1- said they had !een involved in pro$ect selection. /urther pro!ing revealed that a ma$ority of

the community mem!ers do not have any idea a!out =4#/ pro$ects and found difficulty

differentiating !eteen =4#/ and 5/ (a fund set up !y the government for similar

developments). Others responded that they only !ecame aare of the pro$ects hen they sa

them coming up !ut did not %no that they ere =4#/ pro$ects. &t as also revealed that most

ommunity mem!ers do not attend baraza. Only a fe males managed to attend regularly. #hey

complained that only a fe influential mem!ers ere contacted for their opinion on the =4#/

pro$ects.

Reco##ended 'e!ect&on Cr&ter&a.

4s%ed hat improvement, if any, they ould recommend in the selection of =4#/ pro$ects, >0-

of the respondents in the three ards felt that the selection committee should !e elected

prefera!ly through =4#/ community meetings (#a!le 11). *- felt that the selection committee

should !e selected in community meetingsFbaraza. Only - anted the =4#/ decision

43


44/77

committee to !e trained so as to handle all pro$ect selection. @one anted the situation to remain

as they ere.

#hose ho anted the selection to !e done through baraza recommended that every time the

=4#/ committee as ready ith the money, to call a baraza so that the unanimously selected

pro$ects ould !e implemented. /urther pro!ing revealed that they feared that the decision

committee might !e !iased if left to select pro$ects on !ehalf of the community.

#hose ho anted the =4#/ committee to !e trained so as to select pro$ects ithout involving

the community said this ould reduce the time it too% to generate a list of the pro$ects to !e

implemented.

Ta!e 11. Res(ondents 'e!ect&on Cr&ter&a for Proects

Opinion on selection criteria East Seme South entral Seme @.Cest 8isumu

@o. - @o. - @o. -

#rain ouncil committee

mem!ers 10- 10- 1 -

Elect community committee

mem!ers 9- 1 >0- 1 >0-

Select through pu!lic baraza

44


45/77

9- > *0- + *-

=eave the present situation as

it is0 0 0 0 0 0

@one of the a!ove 0 0 0 0 0 0

Tota! 0/ 1//) 0/ 1//) 0/ 1//)

SourceB On

4s /igure 9. shos, respondents from East Seme ard tied in their opinion on ho should select

pro$ects for the community ith 9- of the respondents preferring that pro$ects !e selected !y

elected community committee mem!ers. #he other 9- said that they preferred the pro$ects to

!e selected through pu!lic baraza. 10- said that they ould li%e the council committee

mem!ers to !e trained to handle all the selection of community pro$ects.

45


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5&g. =. Res(onses fro# East 'e#e

SourceB On

Proect Target %anagers

2esponses from the 8isumu county council =4#/ managers ere also analyzed. #he 8isumu

county ouncil =4#/ 5ecision committee is composed of 13 mem!ers. 9- of the =4#/

committee mem!ers ere intervieed.

Educat&ona! 4e2e! of Target %anagers

46

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

e r c e n t

East Seme

Train Council

committee

members

Elect communitcommittee

members

!elect trou"#

$ublic barra%a

Lea&e t#e $resent

situation as it is

'one o( t#e

abo&e


47/77

#o validate the literacy of the decision committee, the educational level of the committee

mem!ers as analyzed.

Ta!e 10. Educat&on !e2e! of 4AT5 %anagers

Educat&ona! !e2e! No. of res(ondents )

@one


48/77

>ender

;ender representation in the committee as also analyzed. #he data revealed that males

outeigh females !y 0-. #his may e:plain hy most of the female pro$ect !eneficiaries

complained that pro$ects selected favored male needs such as the chief7s camp, the cattle dips

and road repair and not ater points.

5&g. >ender of 4AT5 Co##&ttee %e#ers

5%

25%

0%

male

!emal

SourceB On

In2o!2e#ent In The 'e!ect&on Process

48


49/77

4ll the officials from the council and the councilors formed the pro$ect selection committee.

/urther, all the respondents said that community mem!ers ere involved in the =4#/ pro$ects

selection through =4S54< committee. #he =4S54< committee comprised of all the

councilors, selected mem!ers of the community through baraza, officials from the council,

opinion leaders in the community. 4ctive @;Os in the area ere invited to attend !ut ere not

mem!ers of =4S54< committee.

49


50/77

8a!&d&ty Of 4AT5

&nterestingly, as%ed hether they thought =4#/ as serving its original purpose, >- said it

as not serving its original purpose hile only *3- said =4#/ as serving its original purpose.

Ta!e 19. O(&n&on on 8a!&d&ty of 4AT5

SourceB On

4s%ed to e:plain their response, those ho said the =4#/ as not serving its original purpose

said that the money allocation should !e increased. 4lthough the =4#/ as simply to

supplement and support the financing of services and facilities of the local 4uthorities,

respondents felt that the - allocation from the national income ta: as too lo (Odhiam!o,

O(&n&on on 2a!&d&ty of 4AT5 No. of res(ondent Percentage

es

@o

*

>-

*3-

Tota! - 1//)

50


51/77

00>). #hey felt that the needs of the people ere increasing. #hey cited the sister onstituency

5evelopment /und (5/), hich had !een increased considera!ly since its inception. &t as felt

that the 5/ as in fact in the rong hands and as a diversion and a duplication of =4

activities.

/urther, respondents pointed out the multiple role of =4#/. #he =4#/ as responsi!le for

offering services such as education, health, and infrastructure among others. #his made pro$ects

selection difficult ith divergent vies on hat as priority.

2espondents also o!served that the =4#/ officials ere corrupt. &t as noted that =4S54<

meetings ere often held at councilors7 preferred places. More often than not, they held

meetings here most of their voters ere. #herefore, the pro$ects did not serve the hole ard

as intended.

&t as also o!served that representation in the =4#/ committee as !iased this as !ecause

there ere more men than omen in the committee.


52/77

2espondents cited the folloing as improvements that could !e made to ma%e the selection

process effectiveB

• =4S54< meetings to !e held at the venue chosen !y the management committee.

urrently, the councilors and chiefs chose their on meeting venues

• #he community to !e sensitized on ho to choose important pro$ects.

• #here is need to involve e:perts over and a!ove the community involvement. ited as

prioritization of cattle dips. 2espondents felt that modern cattle rearing here e:otic

cattle ere preferred to local !reeds had overta%en such pro$ects. /urther, pro$ects li%e

roads and !ridges needed e:pert advice !efore selection and implementation.

52


53/77

'e!ect&on Cr&ter&a

2espondents ere as%ed hether they chose the pro$ects !ased on the criteria presented in the

options grid !elo.

Ta!e 1=. 'e!ect&on Cr&ter&a

SourceB On

53


54/77

#he options grid revealed that only 4vaila!ility of /inance and ommunity @eeds ere the main

selection criteria employed !y the =4#/ decision committee. #he $ustification of the selection

methods as that the size and comple:ity of the pro$ects as dictated !y the amount of money

availa!le for the pro$ects in Auestion. esides, pro$ects selected ere simple and did not need

rigorous analysis for them to !e implemented

riteria Options

es - @o -

ompeting pro$ects

+ 1*- 1 ++-

4vaila!ility of finances

3 100- 0 0

Ease of implementation e.g. simplicity and ease of construction

as opposed to competing pro$ects0 0 3 100-

#he pro$ect ould earn the community value e.g. recognition,

!usiness opportunities0 0 3 100-

ommunity need i.e., it as proposed !y community mem!ers

as very important to them3 100- 0 0

@one of the a!ove method as used

0 0 0 0

54


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CHAPTER 5I8E

./ 5INDIN>'$ RECO%%ENDATION' AND CONC4U'ION'

.1 Introduct&on

#his chapter discusses the findings from data analysis. onclusions and recommendations are

also presented.

.0 5&nd&ngs and Reco##endat&ons

#he study found the educational !ac%ground of the pro$ect target !eneficiaries to !e lo. #his

means that comple: pro$ect selection methods ould not !e applica!le in the community.

?oever the educational !ac%grounds of the =4#/ management committee as adeAuate

indicating competence of the managers.

55


56/77

On gender analysis, it as found that males outeigh females !oth in the num!er of

!eneficiaries intervieed and in the =4#/ management. #his is an area of concern. 4ccording

Malimu (June, 009), participation !y omen and men in many activities is s%eed against

omen due mainly to cultural reasons and limited access to educational opportunities. 5ue to

their socialization, many omen have developed a rong attitude. #he acceptance of male

domination means many omen are unilling to !e proactive in asserting their participation in

decision ma%ing and to vie for leadership. &t is advisa!le to !e conscious of this ineAuality and to

see ays of reducing s%eed participation in development for the good of society. #here is need

to promote gender eAuity, hich means fairness to !oth se:es in the assignment of duties

responsi!ilities and leadership roles.

On the usefulness of the pro$ects to the community, the study found that a ma$ority found the

pro$ects implemented so far to !e useful. ?oever, hen as%ed hether they thought the

pro$ects ere the most needed !y the community, they responded that they ould have selected

other pro$ects other than the ones implemented !y the decision committee. &n fact even the

managers themselves agreed that =4#/ as not serving it original purpose. =4S54< should use

more participatory approaches to pro$ect selection. /or e:ample, =4S


57/77

community meetingsFbaraza yet they ere the real target group. #his calls for sensitization of

the community. #he opinion of the study is that the greater the information made pu!licly

availa!le and the more certain its source, the greater the chances for a transparent and truly

accounta!le government. Cithout such access, confidence in pu!lic institutions is placed in

$eopardy. #he community interest in the development agenda can only !e captured !y creation of

aareness and participation in decision"ma%ing. #he ivil Society could !e co"opted to play a

more proactive in the sensitization process.

#he money allocated to =4#/ nationide as too little. Only - of the national income ta: as

allocated to the =ocal 4uthorities in the country as opposed to the onstituency 5evelopment

/und (5/), hich en$oys increments every year. #he Auestion is, hat is the economic logic of

having a myriad parallel local development funds, namely =4#/, =ocal 4uthorities

5evelopment 4ction


58/77

each government promising commitment to Gzero"toleranceH on corruption and a!ility to restore

integrity and accounta!ility in the management of pu!lic affairs. #he pu!lic officers ethics 4ct

criminalizes conflict of interest among pu!lic officers !y providing that, a pu!lic officer shall use

his !est efforts to avoid !eing in position in hich his personal interests conflicts ith official

duties (Odhiam!o, 00>).

Chen they ta%e part in prioritization and implementation of pro$ects, communities have a sense

of onership of those pro$ects and might !e illing to sacrifice their time or material for the

success of the pro$ects. itizens should learn s%ills such as ho to plan a pro$ect there!y

developing their capacity. /urther, they should !e encouraged to ta%e part in monitoring and

evaluating development pro$ects (Oloo, 00>).

.9 Conc!us&on

Mismanagement of resources happens hen leaders use discretionary poers for their on

!enefit and not for community !enefit or hen resources are spent in a asteful manner or for

unintended purposes. #o chec% against this form of corruption, communities must !e

empoered so that they are aare not only of e:isting development plans and availa!le

resources, !ut also of the ays in hich they can ta%e part in formation of such plans. itizens

have to !e empoered to ta%e a more proactive role in the management of these development

58


59/77

initiatives and translate into !etter service delivery, and also ensure transparency in utilization of

the funds.

#hough the intention of setting up the funds is to spur participation in development, many

8enyans still do not understand the avenues of participation in the myriad funds. &n fact most

8enyans do not %no of the e:istence of these funds. #his calls for thorough sensitization of the

pu!lic on the e:istence and use of the funds.

?oever, perhaps the most critical implication of the =4#/ and any such funds is its potential to

!e used as an e:cuse for the e:ecutive to a!dicate the vanguard role it should play in national

development planning and implementation. #horough supervision !y the central government is

encouraged.

.= Area for 5urther 'tudy

Studies have !een carried out in competitive approaches to management leaving a gap in the

area of non"profit ma%ing government services. Strategic pro$ect selection is the !eginning of

pro$ect success. ?oever, further studies need to !e underta%en in the field of sustaina!ility of

the selected pro$ects,

59


60/77

RE5ERENCE'

4llison, "+la%ell


61/77

Evans,5.S., 13+a, Q#he2elationship !eteen /irm;roth, Size and 4geB Estimates of 100Manufacturing &ndustries7, $ournal of (ndustrial Econo!ics 9 (9), >+N31.

Evans, 5.S., 13+!, Q#ests of 4lternative #heories of /irm ;roth7, $ournal of )olitical Econo!y , (9), >+N>+9.

;as%ill,=.2., Ian 4u%en, ?.E.,1*, G4 /actor 4nalytic Study of the


62/77

8ing, 8. 6 Mc;rath S. (00) ;lo!alisation, Enterprise and 8noledgeB Educational #rainingand 5evelopment, (nternational Revie of Education, Iol. 0(1), +9"+>(*)

8imuyu "+ May

Meng, =. 4., 6 =iang, #. C. (1>). Entrepreneurs, entrepreneurship and enterprising culture.


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Smes"acess./e!ruary nd 010

Onyango .and #omec%o, (003)SME in 8enya.


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Ian #erpstra(1+3). #he ultural Environment Of &ntrnational usiness. South Cestern.Ce!er M.(1*0). #he , G5o Small usiness ?ave ?igh /ailure 2atesH Journal of Smallusiness Management, Oct, 1>

Ceiss, hristoph 2., 13, QSize, ;roth, and Survival in the 'pper 4ustrian /arm Sector7,!all "usiness Econo!ics 1/, *0N*1.

Ceitzel, C., and E. Jonsson (13), 5ecline in OrganizationsB 4 =iterature &ntegration andE:tension, 4dministrative Science Ruarterly *9 (March), 1"10.

Colf Johnson(001)Comen in Entrepreneurship.5iscussion


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5ear 2espondent,

My name is 2uth 4. @yang7ori. & am a student at the 'niversity of @airo!i underta%ing a degree

in Masters of 4rts in


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*. /amily sizeB =ess than * ( ) !eteen * and ( ) More than ( )

9. Chat is your ageD

119"

>" *9

**"99

99"

4!ove

) Chat is your religionD

1) Chich social netor%Fsupport group do you !elong toD

1ComenFMen group

outh group

* religious group

9Others (Specify)

@one

+) ?o does the netor%Fgroup assist or limit you in your !usinessD

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66


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3) 4re you employedD es ( ) @o ( )

!) &f yes in hich sectorD

1


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ii) 4re you comforta!le ith the place here you are locatedD es ( ) @o ( )

iii) Chy

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. @um!er of employees in the enterpriseB PPP.. Comen P.PP. MenPP.P....

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. 5o you on any other !usiness or !usinessesD

..................................................................................................................................

..................................................................................................................................

..................................................................................................................................

>) Chat is the form of your !usinessD

1Sole


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)?o much as your start up capital and the source(s)D

Sources of starting capital 4mount

#otal

10)Chat is the type or %ind of assets (e.g stoc%, de!tors etc) does your !usiness have and

their valueD

11)Chat %ind of lia!ilities (e.g creditors, loans etc) does your !usiness have and the amountD

#ype of lia!ility 4mount

#otal

1)Chat7s the origin of your !usinessD

1Esta!lished

&nherited

#ype of asset 4mount

#otal

70


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*Others specify

PART III" 4eg&s!at&2e Processes and Po!&cy 5ra#e?ork

1) 4re there any rules set !y the M8 that govern ho you run your !usinessDes ( ) @o ( )

&f yes, hich onesD

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) ?o do these rules affect youDPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP..



*) 5oes your !usiness e:perience any challengesD es ( ) @o ( )

9) &f yes. Chat ould you say are the main challenges that your !usiness facesD &f no, hyDPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP

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) ?o have you handled the challenges you have mentionedDPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP



>) 5o you have a permitD es ( ) @o ( )

+) &f no, hyD

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3) 5o you have access to any form of credit es ( ) @o ( )) &f yes from hich sources




A((end&< II Inter2&e? 'chedu!e for The Bus Park and %arket 'u(er&ntendents

1. ?o many transport companies operate ithin the !us par%F mar%et areaD

73


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. Other than the stallsFsla!s operating at the stage, hat other categories of !usinesses

operate ithin and around the par%Fmar%etD

*. ?o much revenue do you collect per dayD

4. Chat are some of the challenges you face in mar%eting the !us par%F mar%etD

5. ?o can these challenges !e tac%led to improve the services at the par%Fmar%etD

A((end&< III" Oser2at&on 'chedu!e

1. Organization of the !usinesses around and ithin the stage

. #ype and nature of !usiness enterprises operating around the !us par%

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*. =icensing fee collection procedures !y council officials

9. Iolume of !usiness around the !us par%

. #imings in relation to opening and closing of the !usinesses

A((end&< &2" 7OR@ P4AN

Act&2&ty Te 7ho E


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Sharing proposal ithsupervisor

/e!ruary, 010


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Documents

Ruth Thesis Libre