Factors influencing perfomance of micro and small scale enterprises in Shinyalu Division Kakamega East District

Abstract

The research report is about factors influencing performance of micro and small scale enterprises. The study was guided by the following objectives. Assess how financing influence performance of micro and small scale enterprises in Shinyalu division of Kakamega east district, Assess how provision of infrastructure services influence performance of micro and small scale enterprises in Shinyalu division of Kakamega east district, Examine how the use of modem technology influence performance of micro and small scale enterprises in Shinyalu division of Kakamega east district and Examine how education level and training skins of the enterprises influence performance of micro and small scale enterprises in Shinyalu division of Kakamega east district. The conceptual framework explains the relationship between factors and their influence on performance of micro and small scale enterprises.

The area of study is Shinyalu division of Kakamega East District in Western province. Shinyalu division has five large markets therefore the researcher concentrated this study on the five markets. The researcher employed descriptive research design. Non probability sampling; purposive sampling was used to select the eight assistant chiefs, three chiefs, a D.O and a D.D.O. Cluster sampling with simple random sampling were used to sample out 200 respondents in at least every cluster. Data was collected using questionnaire for the entrepreneurs, assistant chiefs, chiefs and D.O. Interview schedules were used for the D.D.O.

The collected data was analyzed using both quantitative and qualitative approaches. Along with the use of SPSS they produced distributions and percentages and report placed in tables The research found out that the four factors jf interplayed would lead to performance of micro and small scale enterprises. The findings of the study further revealed that acquisition of loans with proper fmancial management leads to high performance, at the same time provision of infrastructure services and entrepreneurs who embraced modem technology in their businesses had positive performance of their businesses.

The findings of the study helped in filling the identified knowledge gap. The findings are also expected to help fulfill the wishes of most entrepreneurs through legislations that can help improve this sector. They can also be used by the government through the ministry of planning to formulate policies that can lead to positive performance of the micro and small scale enterprises.