Growth and Performance of Small Scale Enterprises in Small Urban Centres: A Case Study of Migori’s Manufacturing Sub-Sector

The study reported in this project, investigated the factors responsible for the growth and those affecting performances of small scale enterprises in small urban centres, more specifically those of the manufacturing sub-sector.

The study also sought to evaluate the impacts of governmental policy and programmes, the non-governmental programmes and general economic changes; how they attribute to the growth and performance of small scale enterprises in small urban centres where retail and agriculture in the hinterland form the main sources of income.

The study sampled from within the manufacturing sub-sector of the small scale enterprises, namely, carpentry, metal fabricators, shoe makers, tailors, and lastly, tin smiths.  The quantitative data from the above were subjected to frequency, Z-test, t-test and regression analysis, so as to identify the determining and affecting factors.

The findings from the study, led to the following conclusions.
1.)      That the growth of the small scale enterprises In the centre is as a result of demand resulting from;
i)         The growth of population within the town and the hinterland;
ii)        The growth in the economy of the town, regional and that of the national economy that has contributed to increased disposable income overtime.
iii)       The general government policy of District Focus for Rural Development has encouraged the entrepreneurs to invest in their local areas.

2)       That growth is also as a result of supply related variables, namely;
i)         An improvement in the policy environment that favours the small scale enterprises;
ii)        The availability of infrastructural services; water, electricity, roads and telephone have made It possible to trade i.e. buy and sell.
iii)       The growing population has assured constant supply of labour at affordable rates and entrepreneurial skills too.
iv)        The implementation of certain economic policy .more specifically Structural Adjustment Programme constricts the economy, i.e. formal employment, disposable income and then encouraging people to try and look for ways of subsisting; and lastly,
v)         That the sub-division of agricultural holdings is also a factor on the growth of these enterprises in the centre.
3)       Performance of the enterprises was notably affected by lack of Institutional credit facilities, management skills and competition coming from formal multinational and national companies.  Availability of raw materials and skills are not much of a problem since the acquisition of capital allowed an entrepreneur to circumvent them.

Based on the above conclusions, recommendations on the paper thus, address both external and internal constraints to the small scale enterprises as outlined in the recommendation section.

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