The Impact of Regulatory Frameworks on Business in Kenya: a Survey of Rural Smes in Kesses Division, Uasin Gishu District

Abstract

This research dwelt on the regulatory frameworks in the Small and Medium Enterprise (SME) sector in Kesses Division, Uasin Gishu District. It looked at the effects of government regulations and procedures on the establishment, growth and competitiveness of rural-based SMEs. Kesses Division has a population of approximately 700 SMEs, which include all types of enterprise. The sample size was 105 SMEs representing about 15% of the SMEs in the area of study. The sample size was arrived at using probability-sampling techniques, specifically stratified random sampling. The sampling frame was obtained from the District Trade Development Office. The regulatory frameworks studied included trade licensing, business names registration and local authority by-laws. The data collected from the field were analyzed quantitatively and qualitatively using social statistical techniques and computer packages. The data so analyzed were presented using bar graphs, pie charts and tables. From the study, it was found out that regulatory frameworks affect business establishment, growth and competitiveness of enterprises in Kesses division more positively than negatively. It was also found out that some of the enterprise owners in Kesses division have considered compliance as the solution to most problems hindering the running and development of businesses. The enterprises, which have complied, tend to have more annual turnovers than those who have not complied