An analysis of factors affecting the performance of small and medium enterprises in the manufacturing sector in Kenya (Case of selected firms in Thika Municipality).
Gathogo, George Mwangi
MetadataShow full item record
This study sought to examine the factors that affect the performance of small medium enterprises in manufacturing sector in Thika town. For the purposes of our discussion, the terms "firms", "Businesses" and "enterprises" were used interchangeably. An enterprise was defined here as any income generating activity that is not in primary agriculture or mineral production. There was no generally accepted definition of a small business because classifying businesses as "large scale" is a subjective and qualitative judgment In Kenya micro-enterprises are those with 10 or fewer workers, "small enterprises" have from 11 to 50 workers, and "medium enterprises" have from 5110 100 workers. Census indicated that micro-enterprises comprise the lion's share of enterprises while there a few medium enterprises (parker and torres 1994); small enterprises are almost non-existent Jua Kali sector, a Kiswahili term for hot sun, comprised low-scale artisans who mostly apply intermediate appropriate technology. This sector gives all conditions for growth that can bring about industrial revolution in Kenya. The study was conducted within Thika Municipality in Kiambu County of the republic of Kenya. This municipality has many large-scale agricultural activities and several industries. Above all, it boasts of having many small and medium-scale manufacturing and non manufacturing family owned industries. According to the business register maintained by Thika Municipality Council, there are a total of 1,897 registered small-scale businesses at the time of the study. Textile work, including tailoring, knitting and sewing of textile products are the largest activity groups; Woodworks is the second largest group composed of carpentry; Jua kali artisans follow in that order. The study is prompted by the fact that a large number of SMEs in the manufacturing sector have not been performing well while others have closed shop yet they are expected to enable the government to achieve its 2030 vision. The study particularly sought to find out those key factors that contribute to the failure of small businesses in order to enlighten the entrepreneurs about them, to enable them identify, deal and possibly, avoid those pitfalls. The study was carried out in the year 2010 using a descriptive research design. The sample under study was collected through stratified random sampling