Analysis of factors determining the growth of sole microenterprises in kenya. A case of narok county.

Abstract

Due to stagnation in growth and high closure rates of microenterprises globally, entrepreneurs have realized the need to reverse this trend so as to expand the businesses and retain customers. In Kenya, due to unemployment people have resorted to entrepreneurial activities. Despite these efforts a significant number of new enterprises (about 75%) do not survive the first two years and of those that do survive, just about 20% grow at all. Of those that grow, a minority of 1% to 4% actually expand enough to graduate into the next size category. These undesirable entrepreneurial challenges indicated limited business management skills, unfavorable government policies and regulations, unpredictable demand patterns as well as implications of economic factors. The overall objective of this study was to explore the above factors that determine the growth of sole trader microenterprises. The study sought to establish the relationship between income levels, management skills, laws and regulations and demand and the growth of sole trader microenterprises. Descriptive survey research design was adopted. The study population consisted of 45 sole trader microenterprises around Narok area (Kenya). Simple random sampling technique was used to obtain a sample size of 23 sole trader microenterprises. Both primary and secondary data was used. Self-administered structured questionnaires were used to collect primary data. Secondary data was sourced from Narok County government records. Presentation of information is in form of reports, tables, charts and graphs. The study recommendations were of great importance to government especially the Ministry of Planning and National Development, local authorities and individual entrepreneurs.