Entrepreneurship in micro-enterprises : a strategic analysis of manufacturing industries in Kenya -- textiles, woodwork, and metalwork

The research reported in this volume was conducted over a 2-year period beginning in 8/93 to examine the state of these microenterprises, the impact of government policy on them, and ways to improve their well-being. The study focused on three industries (textiles, woodwork, and metalwork) in three geographically representative towns (Kisumu, Eldoret, and Meru). Data were collected in face-to-face structured interviews with 320 microentrepreneurs. After an introduction, Chapter 2 maps out the macroeconomic and sector-specific environments within which the firms operate, while Chapter 3 presents the methodology used in analyzing the study data. Chapters 4-6, respectively, describe the three industries, the characteristics of the entrepreneurs in each, and the competitive forces in each, as determined by entry barriers, the bargaining powers of suppliers and customers, the threat of substitute products, and the intensity of rivalry among competing firms. Relations to civil authority are also investigated in each chapter and brief case studies are presented. Chapter 7 details the strategies used by successful entrepreneurs, covering the areas of market penetration; market development; product development; and diversification. This chapter also examines family involvement in microenterprise activities and issues that affect women entrepreneurs. Chapter 8 discusses government policy toward the informal sector, using gap analysis to organize information from preceding chapters. The analysis identifies four factors: (1) background factors (such as the historical development of government interaction with the informal sector); (2) required system (law, government policy, and social customs); (3) emergent system (what actually occurs within the industry); and (4) consequences for competitiveness. In effect, gap analysis contrasts the required system with the emergent system in an effort to identify significant gaps where new actions can be taken. Includes bibliography.