Factors affecting performance of licensed retail liquor enterprises at different phases of developement: a case of Mumias division, Kenya
Adoli, Hebron Litsulitsa
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The purpose of this research was to investigate the factors affecting performance of licensed retail liquor enterprises at different phases of development such as start up, growth, maturity and decline/ innovation phase. The study examined the applicability of four factors affecting performance of small scale enterprises at different phases of development. These comprised of lack of capital, poor management practices, lack of training and low technology skills. The research was conducted using descriptive survey and used questionnaires for data collection to achieve the desired objectives. The findings have showed that the liquor enterprises are dominated by male counterparts in Mumias division. This was attested by (27) 90 percent of the respondents. Lack of capital was also found to be an impediment to performance of these enterprises and especially during their early phases of development as attested by (18) 60 percent of the respondents. The study also showed that most of the businesses have no business plan hence ineffective management as attested by (26) 86.7 percent of the respondents. Lack of training was found to be an impediment to performance of these enterprises. Most of the business owners and their assistants lacked basic training in these enterprises. This was attested by (21) 70 percent of the owners and (19) 63.3 percent of the assistants. The study also showed that most of the business people of these enterprises lack basic skills in computer. However, they appreciate its importance in improving their performances. It was also found that licensed liquor enterprises performances is also affected by external factors such as competition, high rental charges and political environment as attested by (17) 56.7 percent, (7) 23.3 percent and (6) 20 percent of the respondents respectively. It was concluded that effective management, training, acquisition of technology skills and easy accessibility to capital is critical in improving performance of licensed retail liquor enterprises. The study has recommended that to improve on performance of licensed retail liquor enterprises, owners and managers need to carry out a SWOT analysis on their businesses in order to establish in depth the many other factors affecting their performances.