Factors that influence location, operation and development of small scale industries in Bondo urban centre

Abstract

The rapidly increasing population and slow rate of formal job creation have greatly accelarated growth of "informal sector" whereby small-scale activities have been located in various places. In almost all these locations, informal activities have been incompatible with the adjacent landuses. Whereas the informal sector is a land-use as any other, the planners have usually not included it in their plans. The result is'that these informal activities have been termed illegalo This has also affected the expansion of these small-scale enterpriseso The stud~, therefore, set out to determine factors which influence location and development of small-scale enterprises in Bondo Urban Centre which is characterized mainly by administrative and commercial functions with small scale-scale enterprises concentrated in the central area. This entailed seeking direct opinions of the small-scale entrepreneurs as to why they have located in their respective sites • . ' As a result, the study has come out with a summary of the major research findings in view of the objectives. These include .the fact that most entrepreneurs -At. concentrate largely on consumer/retail and produce goods .' (v i i.) which have proven to be in demand; that etitrepreneurs seek locations which guarantee them ready market for their goods; and that capital is the most serious constraint~"hich hinders the development of informal enterprises. These are, I therefore, some of the research findings expected to help the planners in predicting areas , "- suitab~e for small-scale industrial enterprises and then provide zones for the activities while planning urban areas. To stimulate" the development of small-scale enterprises this study has recommended that the public sector agencies assigned to promote small-scale industries should be strengthened. The Government of Kenya should also support the small-scale enterprises by promoting physical infrastructure, extension services, training and improved marketing