Factors determining management and Performance of the informal/small Scale enterprises in Mumias town

Abstract

This study examines the factors determining management and performance of Informal/Small Scale Enterprises in Mumias town. This town is in western province of Kenya. Mumias is a town with a long history that dates as far back as the early 1800 A.D., but whose present rapid rate of urbanization started only in 1972 as a result of the establishment of a sugar factory in examining these factors; both primary and secondary data were used. Data about the background of the study area and some of the literature and government policy guideline were obtained through reference to secondary data. The existing enterprises, their characteristics and factors determining their management and performance were obtained from primary data through sample surveys. The findings of the study show that major factors that determine management and performance of the sector emanate from both the environmental and socio-economic characteristics of the entrepreneurs and the enterprises. It also found out that the government and the town council has done little to assist the entrepreneurs in the sector. The study has recommended the need for integrated environmental approach in planning for the Informal/Small Scale Enterprises operations. This planning approach, requires the involvement of all agencies and institutions concerned with the development of the informal/Small Scale Enterprises sector, with the government and local authority taking the lead in providing the required infrastructure necessary for environmentally Informal/Small Scale enterprises operation.