Constraints Faced By Mic ro and Small Enterprises in the Liberalised Markets

Abstract

The essence of this paper is to explore the major constraints that influence the development of Micro and Small Enterprises (MSEs) in Kisumu, Western Region part of Kenya. The study conducted was guided by the following hypotheses: constraints, which affect MSEs result from lack of skills; MSEs requires institutional support to overcome these constraints; and many constraints facing MSEs result from poor implementation and lack of co-ordination of policies set by the government. A literature review having preceded our empirical test clearly indicates a strong positive relationship between constraints affecting MSEs and the growth of MSEs in the region. Primary data were collected from 100 Micro and Small entrepreneurs in Kisumu town. Structured questionnaires were administered to the entrepreneurs and their employees. The findings of this study indicate that MSEs face many constraints that result from lack of skills; Institutional support from the organizations; and poor implementation and co-ordination of policies by the implementing agencies. These factors results to moribund of enterprises hence slow development of MSEs in the region. The paper concludes by recommending that the environment of MSEs should be enhanced through introduction of support programmes such as training, consultancy, counselling among others to enable MSEs grow and develop.