Introduction.
1.1 background of the study
According to Burns and Dew (1989) on small scale entrepreneurship, small scale business is characterized by small market share managed by its owners in personalized way through the medium of a formalized management structure. Owners have absolute power over their business and decision-making and workforce ranges are under two hundred employees. Small scale enterprises are business enterprises that are independently owned and operated, not dominate in each field and meets Indus by specific size standards for income or number of employees, (Boone and Kurk 2003).
In Kenya, a small scale enterprise is identified as the one operating locally where its owners belongs and its managed independent. It can also be defined as a trading different commodity or goods in a particular market place. Small scale enterprises normally concentrate on selling cloths, food stuff, shoes and bags. A person involved in this kind of business is called an entrepreneur whose characteristics include risk taker, innovative and self confident.
Small scale enterprises have emerged since it is a better way to deal with poverty. Different entrepreneurs have tried to create new jobs with the aim to survive and this has encouraged many unemployed and retrenched people to develop for the purpose of generating income to help in sustaining themselves and their families. Small scale enterprises are formed daily in thousands in different countries hence the need to find out what affect their management. (Boone Kurk 2003)
The Review on Factors affecting grouth of small scale enterprise in Kenya
... (2006), small scale enterprise sector contributed greatly in economic development. However, despite their impact past statistics indicate that three out of five businesses fail ... that chances of small enterprises owners making it past the five-year mark are very slim (ILO, 2005). Major challenges facing small scale traders include ...
1.2 Statement of the problem
Small scale businesses are one of the major businesses that many entrepreneurs take part in. small scale enterprises at Gikomba market are faced with numerous challenges: The problems are both internal and external and can exert much pressure on the proprietors of small business enterprises. For instance lack of capital in the small scale enterprenuers to improve the business to cater for financing requirements due the inherent risk of ventures, misapplication of development loans and failure to meet loan obligation for example deliberate diversion of loan meant for investment into non productive ventures, inability to produce bank collateral securities; high bank rate and low saving also lilt access to bank funds. These too include lack of standard accounting practices and orientation for example little or budgetary planning and control. In line with the external there is lack of conducive environment for the business in the small scale enterprises and inadequacy or lack f motivation, communication and participatory or transformational leadership and following behavior. Lack of managerial skills on the part of the proprietors also inadequacy or lack of structural skills to deal with issue that face the entrepreneurs in Gikomba market. In addition with the problems factors affecting small scale entrepreneurs in Gikomba Market includes lack of clearly defined mission and objectives among others can negatively affect the smooth running of small scale business
1.3 Purpose or objective of the study
The main objective of the study is to find out factors affecting management of small scale enterprises the researcher will come up with;
1. To find out how economic crisis affect management of small scale enterprises in Gikomba market.
The Essay on Small Scale Business Management
It was funded by Department of Youth on the 29th June 2010. When I started this project my aims was to make something that is unique in my place, I wanted to combine catering and decoration as I have registered at registration of companies, the project that I wanted to run was to hire tents with catering combined with a garden decorated for photos and video shooting. Unfortunately the finance that ...
2. To establish the effect of competition on management of small scale enterprises in Gikomba market
3. To ascertain how the government policy affect management of small scale enterprises in Gikomba market
1.4 Research questions
1. How does economic crisis affect management of small scale enterprises in Gikomba market?
2. What is the effect of competition on management of small scale enterprises in Gikomba market?
3. How does government policy affect management of small scale enterprises in Gikomba market?
Literature review
2.0 Introduction
This is a process of identification, location and analysis of the document containing information relevant to the problem under investigation. This chapter contains review on factors affecting management of small scale enterprise in Mombasa especially in Gikomba market. The aim of the literature will be to provide the researcher with the background information about the topic under investigation. Past studies on this area were reviewd in order to provide an insight on this topic.
Small scale enterprises are privately established by entrepreneurs whose main objective is to make a profit out of the products and services they offer to their customers.
Review of Theoretical Literature
Boone and Kurtz (2003) describes small scale business as a firm that is independently owned and operated, not dominant in its field and meets industry specific size standards for income or number of employees. In United State of Americans view small scale businesses as the one limited to an annual turnover of less than ten million US dollars. In Kenya perspective, a small scale business does not employ more than fifty employees.
The European Union generally defines a small business as one that has fewer than 50 employees. However, in Australia, a small business is defined by the Fair Work Act 2009 as one with fewer than 15 employees. By comparison, a medium sized business or mid-sized business has less than 500 employees in the US, and fewer than 200 in Australia.
Hasham (2005) of books first says “it is wonderful making money doing something I would do for free”. This denotes that it is important for enterprenuers to indulge in ventures they know they will be able to handle in any situation. Hence say that the ides works are those that offer service or standard and give contemporary twist. The focus of the past studies is to shade light on variable that affect management of small scale enterprises.
The Term Paper on Small Scale Enterprises
Various theoretical models have been developed which describe the growth of small businesses. One class of theoretical models focus on the learning process, either active or passive, and the other models refer to the stochastic and deterministic approaches. In the passive learning model (Jovanic 1982 cited in Liedholm 2001), a firm enters a market without knowing its own potential growth. Only ...
