An investigation into the factors influencing the growth and distribution of Forex Bureaus in Kenya : a case of Nairobi

Abstract

Location of a business is a very important factor that determines the success ofany business. Although a lot has been written about location of businesses. there are a few people who consider the many factors that affect the choice of a location. The project examined the subject in relation to the forex bureau business. The main objective of the study was to identify and analyze the factors that have determined the distribution of forex bureau business Nairobi. Data was collected from foreign exchange bureau operators within the city center of Nairobi, at the JKlA airport and in other areas outside the city center but within Nairobi. Respondents were selected using stratified sampling technique. The researcher collected primary data using a selfadministered questionnaire.The results of the study revealed that there are several factors that determine the location of a forex bureau business. Location along the main route emerged as the most important factor with 93 percent of bureaus identifying this as a major determinant. Other factors were; location within the town center, location within the airport, location in area with good security as well as locations near a bank. Only a mere 23 percent cited location near a bus stop as an important consideration in determining the location of forex bureau business. Conclusions from the study are that start-up requirements for forex bureaus are fairly simple and easy. There is also a good market for forex bureau services and therefore investors should consider establishing additional forex bureaus.