HIV/AIDS and the development of the micro and small enterprise sector in Nairobi

Abstract

Over 25 million workers worldwide are infected with HIV, and millions more are affected by the epidemic. The epidemic cuts the supply of labour, with a resulting loss of skills, training and experience. At the same time, labour costs are rising due to sickness and absenteeism. As a result, enterprises are losing productivity, public and private investment is being cut, and employment opportunities are contracting, with an increase in precarious/informal activities and growing poverty. This project paper examined the effects of HIV/AIDS on the development of the Micro and Small Enterprise sector. The paper looks at the effects of HIV/AIDS on output and inputs of a business as well as the effects on management practices. The objectives of the study were to examine the effects of HIV/AIDS, to determine how the pandemic influences the inputs, outputs and firm production, and to outline interventions necessary. The hypotheses for the study stated that HIV/AIDS affects negatively all the above, ie inputs, outputs and firm production. The analysis indicates that the HIV/AIDS scourge has seriously affected the outputs and inputs of firms. Markets are also affected because the purchasing power of the population has declined, as the epidemic ravages on. In declining health, the entrepreneurs may also not be in a position to carry out extensive marketing of their products. HIV/AIDS affects firms' production practices. HIV /AIDS affects management issues. This is especially seen when time is diverted to care for sick family members. It has emerged that absenteeism costs businesses a lot. Time management is non - existent and many man-hours are diverted because of HIV/AIDS. The paper has made various recommendations to deal with the aggravating effects of HIV/AIDS. Among them include educating these entrepreneurs on safe sex issues, and providing an appropriate health care and social support system. The government should also make provisions for the care and for the future survival of families that have been affected by the pandemic. Lastly, those entrepreneurs that are taking care of orphans and other dependants made so by AIDS should be given all the necessary help so that they do not unnecessarily eat into their enterprises, running them down.