Determinants of Informal Sector Performance in the Rural Areas of Kenya: Evidence from Makueni County

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Date
2014
Authors
Dianah, M. Ngui
Joseph, M. Muniu
Wawire, N. H. W.
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Abstract
The general objective of this paper was to investigate the factors that determine the performance of woodwork and metalwork enterprises in the rural parts of Makueni County in Kenya. The results showed that working capital. licensing. competition and the level of education were statistically significant in determination of profits. Based on the findings. it is recommended that the government and other stakeholders should provide both financial and non-financial services at affordable rates to the small business operators and entrepreneurs. Loans in form of money or kind should be made available through relevant lending institutions to supplement the working capital. eminars and conferences should be held to create awareness to the entrepreneurs of the various incentives and credit facilities provided by the government and other stakeholders. To achieve diversification and reduce the level of competition, the government should advice entrepreneurs on alternative business ventures. The government should also allocate land to the entrepreneurs and establish business parks
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A paper presented at The International Conference on Dynamics of Rural Transformation in Emerging Economies 27-28 March, 2014
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