A study of small scale enterprises in Secondary towns: a case study of Kakamega town

Abstract

After independence,in an attempt to foster economic growth and development, Kenya opted to lay more emphasis on the agricultural sector as the main employer, sustainer and foreign exchange earner. Since then agriculture has been the dominant sector of the economy. Although our stress has been on agriculture, given our rapidly expanding population and the need to cater for these , increasing numbers, the ability of the agricultural sector to create or expand employment opportunities has been limited. A new strategy, aimed at creating employment both in urban and rural areas and especially more so in the secondary towns which are situated in the rural areas where most of the people live, has been the encouragement of small-scale industries and informal sector activities. This study focuses on industrial and service small-scale enterprises in Kakamega town. The study examines inter alia these firms characteristics, in terms of size, production levels, level of investment, sources of invested capital, potential for growth and employment creation. These firms were found to be experiencing several problems.