In Kenya, small businesses make up majority of all the enterprises. Therefore it is the main source of employment to the Kenyan population. The need to create employment opportunities is brought about by the high rate of labour force growth than population growth. Persistent slow economic growth especially in the public sector, has forced many people e.g school leavers and college or university graduates to venture into small businesses.
This small businesses include: selling fruits and vegetables at the roadside, selling clothes and shoes (both new and secondhand),small retailers or hawkers selling ceraeals,home suppliers and other goods, operating a kiosk, car wash, Agri-business, shoe repair, motorcycle rider among others.
More people benefit from this small enterprises as they are able to provide for their families e.g pay schools fees, buy food and other necessities.
Informal sector is a crucial sector for most of the developing countries like Kenya because the private sector cannot accommodate the growing number of unemployed persons. The informal sector has come in to fill that gap.
The Kenyan Government treats this sector as a major component of economic development. It is more than just an employer but also in the Government development policies. The Government identifies small enterprises as important and helps or facilitates them to move into the formal sector. This enable them to become major contributors in the creation of employment to the youth and also promoting economic development.
To promote them, the Kenyan Government has formulated policies that promote and quicken the process of stating a small business. E.g simplifying the legal requirements for starting a businesses by removing bureaucracies. In cases where people were required to acquire many permits, that has been reduced significantly by introduction of a single business permit.
The sector’s main challenge is inadequate funds for starting ad operating the business. The Government should come up with adequate policies to boost the sector to which will enable it to provide employment to more people.
Kchris answered the question on November 14, 2018 at 14:27
- Explain the benefits which students in school of Business and Economics will acquire by taking the unit BBM 1101.(Solved)
Explain the benefits which students in school of Business and Economics will acquire by taking the unit BBM 1101.
Date posted: November 14, 2018. Answers (1)
- Discuss the grouping of the money-market instruments in a business.(Solved)
Discuss the grouping of the money-market instruments in a business.
Date posted: November 13, 2018. Answers (1)
- Discuss the main services that are provided by financial intermediaries in a business market.(Solved)
Discuss the main services that are provided by financial intermediaries in a business market.
Date posted: November 13, 2018. Answers (1)
- Define the term international business(Solved)
Define the term international business
Date posted: November 10, 2018. Answers (1)
- Describe any five theories of management and explain how they can be used by managers to improve on their organizations(Solved)
Describe any five theories of management and explain how they can be used by managers to improve on their organizations.
Date posted: November 9, 2018. Answers (1)
- State the circumstances under which hire purchase may be used(Solved)
State the circumstances under which hire purchase may be used.
Date posted: November 8, 2018. Answers (1)
- Managers are born not made. Discuss(Solved)
Managers are born not made. Discuss
Date posted: November 6, 2018. Answers (1)
- Highlight 4 possible effects of a positive change in the consumers preference for a good(Solved)
Highlight 4 possible effects of a positive change in the consumers preference for a good.
Date posted: November 5, 2018. Answers (1)
- Explain benefits enjoyed by a company embracing total quality management(Solved)
Explain benefits enjoyed by a company embracing total quality management.
Date posted: November 4, 2018. Answers (1)
- Outline the role of market mechanism of land and environment as a natural resource.(Solved)
Outline the role of market mechanism of land and environment as a natural resource.
Date posted: November 2, 2018. Answers (1)
- Identify four reasons why touch screen communication devices are overwhelmingly dominating today's market.(Solved)
Identify four reasons why touch screen communication devices are overwhelmingly dominating today's market.
Date posted: November 1, 2018. Answers (1)
- State four reasons why direct production is common in Kenya(Solved)
State four reasons why direct production is common in Kenya.
Date posted: October 31, 2018. Answers (1)
- Highlight 4 possible consequences arise due to poor arrangement of goods in a warehouse(Solved)
Highlight 4 possible consequences arise due to poor arrangement of goods in a warehouse
Date posted: October 29, 2018. Answers (1)
- Discuss four approaches to establishing the total marketing communication budget.(Solved)
Discuss four approaches to establishing the total marketing communication budget.
Date posted: October 29, 2018. Answers (1)
- The objective of the marketing message could be to seek any of three desired responses. Discuss.(Solved)
The objective of the marketing message could be to seek any of three desired responses. Discuss.
Date posted: October 29, 2018. Answers (1)
- Explain the nine elements of the marketing communication process.(Solved)
Explain the nine elements of the marketing communication process.
Date posted: October 29, 2018. Answers (2)
- Mention four circumstances under which a firm can use competitive advertising(Solved)
Mention four circumstances under which a firm can use competitive advertising.
Date posted: October 27, 2018. Answers (1)
- Identify four possible causes of structural unemployment(Solved)
Identify four possible causes of structural unemployment.
Date posted: October 27, 2018. Answers (1)
- Highlight four features of postal orders. (Solved)
Highlight four features of postal orders.
Date posted: October 27, 2018. Answers (1)
- Highlight five types of documents that may be used in process of receiving materials into the warehouse
(Solved)
Highlight five types of documents that may be used in process of receiving materials into the warehouse
Date posted: October 24, 2018. Answers (1)