EFFECT OF BUSINESS DEVELOPMENT SERVICES ON THE PERFORMANCE OF SMALL SCALE ENTERPRENEURS IN KENYA. A SURVEY OF SMALL SCALE ENTERPRISES IN KENYA

Abstract

Small Scale Enterprises are acknowledged in Kenya as significant contributors to economic growth and are estimated to contribute 20% and 72% to the Gross Domestic Product and employment respectively. Despite this, it is estimated that they continue to have a deteriorating performance with 3 in every 5 failing within months of establishment. Likewise, the new jobs created by the sector declined from 485.5 thousand in 2007 to 467.3 thousand in 2008 and their contribution to the GDP of the country has only registered a marginal growth of 3.8% in the last 10 years. Poor management skills have been blamed for this wanting performance. Therefore, the purpose of this study was to investigate the effect of business development services on the performance of Small Scale enterprises in Kisii Town The study found out that the entrepreneurs who received business development services recorded an improvement in the growth of sales and growth in market shares on the various businesses they were operating. The study recommended that Government of Kenya should establish micro and small centres of excellence in each county for information dissemination, research, and product development and program promotion. The Government of Kenya should develop and implement innovative curriculum materials and methods for training needs related to self employment and entrepreneurship. The findings of the study are expected to assert the importance of the provision of business development services in the enhancement of business performance.