The paper "The Small Business Environment in Kenya" is a perfect example of a business case study. As a developing country in Africa, Kenya has a flourishing number of small and medium enterprises, generally referred to as small businesses in the context of this report. Most of the businesses have to compete with already established multinational companies and have to deal with numerous challenges enumerated hereunder. This report is written for the purposes of shedding light on the challenges and opportunities that exist in Kenya’ s small business sector. More so, it is meant to provide the Kenyan government and international donors with pointers about the specific areas that need attention in order to make it easier for small scale investors in the country to establish business and compete fairly with other larger enterprises in the country and if possible, elsewhere in the world. The Kenyan government categorizes small businesses as all enterprises that have less than 250 employees (Mbithi & Mainga 2006, 5).
This category is further sub-divided into micro-enterprises (0-9 employees), small enterprises (10-50 employees) and medium-scale enterprises (51-249 employees). A different definition offered by Kimuyu and Omiti (2000) describe small businesses as labour intensive businesses which use high labour capital ratios to produce similar products which are produced by larger companies using technologically advanced techniques.
The third definition offered by Kimuyu and Omiti (2000) suggests that small businesses are enterprises that involve minimal capital, and are usually started by individuals. As a result, their growth progress is much slower, while their access to financial support from mainstream financiers is limited. Synopsis of the small business setting in Africa In Africa, small businesses usually take the form of a family-owned business, where the entrepreneur dedicates his/her own efforts to the growth of the business.
Usually, some businesses exist without government registration and licensing.
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