Factors that determine formation and performance of small scale business enterprises in Bungoma town

Abstract

This study aimed at examining factors that determine Formation and Performance of Small Scale Business Enterprises in Bungoma Town. In examining these factors, both Primary and secondary data were used. Data on the background of study area and some of the Iiterature and Government policy guideline for instance were obtained through secondary data. The existing enterprises, their characteristics and factors behind their formation, and performance were obtained from primary data through sample surveys. From the baseline surveys done in the Town, it was established that the town had a great potential in the development of the entire spectrum of informal sector activities. This potentiality was explained by the steady increase in the towns population which meant an increased demand in some of the small scale enterprise products in the town. The location of the town along the major transportation lines and the presence of Manufacturing -Industries such as Nzioa, Panpaper and Mumias were also established as some of the factors that contributed to the existence of these activities in the town.