An Investigation Into the Problem Faced by Small Scale Indigenous Businesses as Perceived by the Owners:the Case of Kitui Town

Abstract

This study soughht to find out the problems faced by small scale indigenous businesses as perceived by the owners. It also souqht to document the measures considered important in solving these problems. The need for this study arose from the fact that many of the small scale indigenous businesses have not always performed as expected. This is despite the fact that government and other non-Government agencies have made deliberate efforts to held the upcoming African businesses and esoecially in the rural areas. To achieve the objective. primary data was collected from 45 businesses in Kitui town. The method of data collection was throuqh interviews with the owners of the businesses. The problems that have confronted businesses in the area of study were analyzed and were found to be of two types basically. They are internal problems that are considered as directly ; associated with the businessmen themselves and within their control. And second were external problems that originate from the environment and as such the owners do not have direct control on t.hem. The first category includes problems like improper business records and lack of formal educat ion. The second category oroblems include. drought famine. high loan interest rates. lack of customers market and short credit periods for loans. The conclusion reached after the investigation and analysis was that any assistance meant to held the small scale indiqenous businessmen will onlv succeed if it is carried by a hiqhly

motivated and disciolined workforce that will not only qive advice and helo to each businessman accordinq to his uniaue situation and needs. but also ensure a follow - up constantly. so that problems can be detected and corrected in time.