Factors that Determine Formation and Performance of Small-Scale Business Enterprises in Bungoma Town.

This study aimed at examining factors that determine formation and performance of small-scale Business Enterprises in Bungoma  Town .In examining these factors ,both primary and secondary data were used .Data  on the background of the study  area  and some of the literature  and government policy guideline for instance  were obtained through data .The  existing enterprises ,their characteristic and factors behind their formation ,and performance were obtained from primary data through sample survey.

From the base line surveys done in the town, it was established that the town had a great potential in the development of the entire spectrum of informal sector activities. This potentiality explained by the steady increase in the town’s population which meant an increased demand in some of the small-scale enterprise products in the town. The location of the town along the transport lines and the presence of manufacturing industries such as Nzoia,Panpaper and Mumias were also established  as some of the factors that contributed  to the existence of this activities in the town.

The study also established that formation of these enterprises in the town was a function of entrepreneurs’ perception. Desire to great an in depended form of earning for instance was among the factors behind formation of these enterprises. Perceived earnings among the various enterprises played also a major role in formation .Availability of operational capital, conducive working space, good market channels, availability of working tools were observed as some of the factors that could determine the performance of a given enterprise.

Based on the above findings, the study has suggested some policy implication that could assist policy markers in creating an enabling environment towards the development of small-scale Business enterprises not only in Bungoma town but also in other up-coming Towns.

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