A survey of the financial challenges faced by Small and micro enterprises in Nairobi: a Case study of motor vehicle repair garages in Nairobi

Abstract

The small and micro garages in Kenya are one of the major sources of employment for the youth in this country, this sector is critical to the economy as it keeps the road transport sector going, its survival is however threatened in the light of the financial challenges it encounters. The purpose of the study was therefore to identify the financial challenges by the SME garages. The study was carried out in Nairobi. Its main objective was to identify the financial challenges faced by small and micro enterprises a case study of garages. The research design was a descriptive survey. It targeted small and micro garages operating in Nairobi. The researcher used simple random sampling method and selected forty garages from the city council licensing department. Data was collected using structured questionnaires; thirty two respondents filled and returned the questionnaires. The data was coded, tabulated and analyzed by use of percentages presented using tables and pie charts The study found out that small and micro garage faced a lot of financial challenges when conducting their business: some of those challenges include; payment of rent, financing of repairs, payment of salaries, accessing credit, financial planning among others. From the finding of the study, it was recommended that the financial institutions should be more sensitive to the unique financial needs of the small and micro garages and come up with tailor made products to assist the SME garages, it was also recommended that the SME garages should improve on their financial management in order not only to attract credit but also grow, the government was also asked to provide a conducive environment that would promote the growth of this sector. The researcher hopes that the recommendations made in this project will be taken seriously by all the stake holders and implemented without much delay