Factors That Affect The Growth of Small-Scale Enterprises; Small-Scale Enterprises in The Textile Sector, Embu District
Ndukanio, Joseph Njage
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The development of micro and small enterprises is a primary means of strengthening the economy of any country. These MSEs are the life blood of most economies today. Most of these MSEs are labour intensive and are therefore able to create jobs at relatively low cost. They, therefore, can make a major contribution to the nation's economic well being. Majority of these MSEs, however, do not grow to any reasonable size that generates income at 'acceptable level' of activity (Burns and Dewhurst, 1996). Appleby (1994) observed that despite the benefits of MSEs, their lack of growth and failure rate are on the increase. He contends that 60% of start-ups never celebrate their third birthday. The purpose of this study was to investigate factors that affect the growth of MSEs in the textile sector, Embu district. The study used descriptive survey design. The target population of the study was one hundred MSEs operating in Embu town and who are licensed by the municipal council of Embu. A sample of thirty enterprises was used. The enterprises were stratified into those operating boutiques and those in tailoring business, after which simple random sampling was done in each stratum to get a proportionate sample in each business category. The study used questionnaires to collect data. These were delivered by the researcher and this provided an opportunity to clarify to the respondents any ambiguous questions. This helped in improving on the validity and reliability of data collected. A pilot study was conducted on four traders. The result of this pilot study enabled the researcher to discover question that required improvement or rephrasing to enhance reliability and validity. After data was collected it was analyzed using descriptive statistic and use of SPSS computer package was used for analysis. The results of data analysis were presented by use of tables, pie-charts and bar charts. Secondary data Was collected from secondary sources some which included libraries. The major findings of the study were that, marketing communication, finances, market research, business and entrepreneurial training are significant factors affecting growth of MSEs in the textile sector Embu. Finally conclusions and recommendations were drawn including suggestions of areas for further study.