Constraints to Growth Transition of Micro Enterprises into Small Enterprises in Kisii County, Kenya

Abstract

This study intends to explore the constraints facing entrepreneurs in the micro enterprises sector. Micro enterprises play a significant role in the country’s economy. Many countries in the world have realized the importance of micro and small enterprises (MSEs) and therefore are working to improve their performance and competitiveness. In Kenya, MSEs cut across all sectors of the country’s economy and provide one of the most prolific sources of employment not to mention the breeding ground for small, medium and larger industries, which are critical for industrialization today. These enterprises are found in every corner of Kenya and they have great potential for creating a variety of jobs, while generating widespread economic benefits. It is in the light of the above that the study is designed to establish the challenges facing growth of microenterprise. The study was a descriptive study and was limited to Kisii County, Kenya. Questionnaires were used for data collection and descriptive statistics were used to analyze the data obtained. In view of the findings as well as the conclusion deduced from the study some recommendations were made.F irstly, the study suggests that institutional support should be extended to the MSE sector to help build capacity of the owners/Managers as far as strategic planning is concerned. The recently created MSE Authority in Kenya should urgently provide this support as stipulated in the MSE Act of 2012. Secondly, the MSE owners/managers through their associations should encourage networking amongst its members in order to learn best practices which include developing strategic plans.The development partners in their efforts to spur entrepreneurship in Kenya should support programs that will create awareness and attitude change among entrepreneurs as to the benefits of strategic planning in business