The Causes and Consequences of the Increase in Small-scale Entrepreneurship in Mosocho Division, Kisii District

Abstract

This study was done in Mosocho division, Kisii District. The study was prompted by the realization that there had been a marked increase in small-scale business activities in the area and in the country in general. It was argued that poverty and meagre resources are some of the factors that are explanatory to the resurgence of the small-scale entrepreneurship. Scholars such as Hart (1973), Stockes (1975), McCormick (1988) and Murphy (1996) have recounted observations of the rejuvenation of informal ways of earning a living such as small-scale enterprises. The population in the study area has in the past relied, largely, on small-scale farming for sustainance, albeit the high population density that has reduced acreage ownership. Poverty is a major problem in the area. This is characterized by high levels of unemployment, reduced agricultural production, poor state of infrastructure and type(s) of shelter. The study set out to investigate the contributing factors as well as the consequences of the increase in small-scale enterprise activities. The study takes an anthropological perspective, which takes into account the local cultural context. For instance, some cultural attributes were found to constrain entrepreneurship while others were promotive. These hav'e-a bearing on the causes as well as consequences of small enterprises as well as poverty reduction throqgh the impact on peoples' socioeconomic status. In the course of the study, data was collected using various methods such as participant observation, the questionnaire, focus group discussions, and key informant interviews. These data were analysed both by means of both quantitative and qualitative techniques. The study revealed that poverty, unemployment as well as cultural factors are -- pertinent issues in the increase in small-scale enterprises in the study area. In addition, IV there are various constraints to small-scale entrepreneurship such as lack of capital, infrastructural constraints as well as certain cultural factors. A major conclusion of this study is that small-scale entrepreneurship is contributing to the improvement of peoples living standards. The decision-making process involved in these investments as well as expenditure habits or patterns are influenced by both economic and cultural factors.