Challenges facing small scale business growth and survival:The case of Chloride Exide Battery/Solar dealers around Mt. Kenya East Region

Abstract

This research is to a large extent concerned with the challenges facing small scale business growth and survival. The author briefly outlines the challenges that small scale enterprises face throughout the developing world, and further narrows down in the case of Kenya and eventually closing with a field research on Chloride Exide battery/ solar dealers around Mt. Kenya East region. Issues that the research considered include among others, challenges the small scale enterprises encounter in the market place, key business growth and survival factors (technology, marketing, accounting, and management skills) and suggestions (innovation, training, networking and credit expansion) to facilitate small scale business growth and survival. These issues resonate with global interests and are of great importance to the small scale enterprise sector. This is particularly so in the area of poverty reduction, job creation and economic development of the country. The research began by focusing on the broad challenges facing small scale enterprises and later examined a case of Chloride Exide battery / solar dealers around Mt. Kenya East area. In order to realize this purpose, this study used both qualitative and quantitative approaches. Questionnaires and interviews were used and data collected from the target population. The population comprised of one hundred and twelve battery / solar dealers in all the twelve towns around Mt. Kenya East region namely; Embu, Runyenjes, Chuka, Chogoria, Nkubu, Meru, Laare, Mutuati, Isiolo, Timau and Nanyuki. The researcher collected data from fifty six dealers. Using statistical package for social sciences (SPSS) version 11.5 for windows, data was analyzed based on descriptive statistics. Study findings were then presented in frequency tables. Small scale businesses have the potentiality of transforming the economy of a crippling nation. Study findings revealed that small scale businesses face unique challenges; - lack of management skills, inadequate education, technical skills, access to financial services and legal and regulatory issues, which affect their growth and profitability and hence, diminish their ability to contribute effectively to sustainable development. As such, every effort should be made to boost their growth.