Micro Entrepreneurial Environment and Profitability of Micro Small Bar Ventures in Beverage Industry in Kasarani Sub – County nairobi Kenya

Abstract

This study examines micro entrepreneurial environment and profitability of micro small bar ventures in beverage industry in Kasarani Sub-county Nairobi Kenya. The study was motivated by the rapid changes that threaten to destabilize the industry if not checked. Further, the regulations in the beverage industry particularly in bar ventures have had a myriad of effects eminent among them being that which affect the operations of small bar ventures either directly or indirectly thus putting concern on the growth of this ventures. The objectives of this study were to examine the effect of non-tax legislation, price changes as a result of taxation, entrepreneurial competences and promotional activities on profitability of micro and small bar ventures in Karasani sub-county, Nairobi County. The study is expected to benefit bar entrepreneurs through helping them realize the factors that they can concentrate on to enhance growth of their ventures, The National Campaign against Alcohol and drug abuse in Kenya through providing an evaluation of their authorities policies in creating a balance for enhancing entrepreneurship as well as promoting the authorities objectives. The study targeted target 285 owners of bar ventures distributed across Kasarani Sub County. A descriptive research design was used to accomplish the research objectives. Stratified sampling technique was used to select a sample of 185 (65%) respondents to participate in the study. Data was collected using a semi structured questionnaire. The reliability of the research instrument was tested using test-retest method. Descriptive statistics was used to summarize data into meaningful forms, while multiple regression models were used to test the relationship between the study variables. Interpretation of the research findings was done based on the research questions. The study findings showed that micro enteprenuarial environment had very low contribution towards the profitabiloty of small bar ventures in Kasarani sub-county. Legislation has the highest contribution according to the study findings. Price cuts as a result of taxation can increase profitability of small bar ventures as a result of increased consuption.However, the study findings record very low contribution of price cuts towards profitability.Enterprenurial competence contributes towards profitability while promotional activities contribute by a smaler percentage. The study recommended a need to enforce regulations that promote participation in business by small bar ventures, for the government to promote training and mentorship training among small enterprises and for major liquor manufacturing companies to increase their level of promotions. A further study could be carried out to establish entrepreneurial factors affecting profitability of small bar ventures in Kasarani Sub County, further, a similar study could be carried out to establish the effect of micro entrepreneurial environment on profitability of other small enterprises in other sectors of the economy.