Challenges facing small business in Kenya
|Indeed,to come with a logical definition of a small scale business is not that easy.It is dependent of quantity of output,say number of | |employees,stakeholders and also varies from one industry or firm to any other. | |A small scale business I can assert to be managed in sole proprietorship or partnership and whose output is relatively small. Since colonial | |times,Kenya has had mushrooming small scale businesses and it has been significant to the very survival of many inhabiting this country. | |Asians, for instance, started small shops dating 1950's where two to three Africans had their employment and could earn something small and | |this has always been the behavior to date. | |There are various challenges that has hampered progress in such trading systems in terms of expansion, service provisions, its running, | |credit availability among others. These include :- | | | |a)Financial Constraints | | | |Finance has made it difficult to progress and provide quality services.For example, many such micro businesses, as some call them,deal with | |primary products and readily available cheap resources. Financial institutions find it hard to consider lending loans to them as no | |securities would warrant the repayment or fine subject to breach of contract or...
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