Factors influencing the performance of small scale enterprises in Hargeisa, Somaliland
Said, Mohamed Dahir
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Small and medium scale enterprises are increasingly becoming important economic actors in the struggle for development throughout most of Africa. This development has taken place fairly recently in many African countries - indeed, it may be said to be a phenomenon from 1980s in response to the continuing economic crises and ensuing reforms of the same period. This crisis has forced people to engage in income generating activities with greater intensity to offset the deterioration in their standard of living (Rutashoba & Olomi, 1999). This research focused on "factors influencing performance of small scale enterprises in Hargeisa, Somaliland". Key factors studied included; entrepreneurial and managerial competence, marketing of the businesses, availability of capital and technology employed in small businesses. The study adopted a descriptive research design. The study was conducted in the capital city of Somaliland, Hargeisa. The population of the study consisted of 3,266 small businesses registered at Hargeisa Municipality. The sample of this study comprised of 60 enterprises which were selected using simple random sampling technique. The research data was collected using questionnaires. The data was analyzed with the aid of statistical software, namely Statistical Package for Social Sciences (SPSS). The study established high illiteracy levels of most of the business owners. Most of the business owners had not attained any formal schooling. In addition, most of the business owners had no entrepreneurship or managerial skills and had no prior business experience/Skills since they had not operated any other businesses before. The study therefore recommends an urgent need for business owners training on the various skills of running the business. This should be started at early stages of education. The government and NGOs should put more efforts in training of the business community on entrepreneurial and management skills. This will go a long way in improving the small business performance in Somaliland since they contribute significantly in the country's economy.