Issues in Small Business Enterprises in kenya PDF

Running Head: ISSUES IN SMALL BUSINESS ENTERPRISES IN KENYA
Issues in Small Business enterprises in Kenya

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Issues in Small Business enterprises in Kenya
Table of Contents
1.Introduction...................................................................................................................................3
2.Literature Review.........................................................................................................................4
3. Methodology................................................................................................................................7
4.Findings:.......................................................................................................................................8
5.Discussion and Analysis.............................................................................................................13
6.Conclusion and Recommendation:.............................................................................................14
References......................................................................................................................................15

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Issues in Small Business enterprises in Kenya
1.Introduction
1.1 Statement of the Problem: Earning profit is the main aim of a business. Apart from this
earning a good amount of market share is equally important. With good marketing strategies is it
possible for medium and small sized organizations to flourish in the competitive market (Van
Aken & Berends, 2018). In this research project some marketing strategies are identified for
Little Collins Kitchen in Australia that will help the organization perform better in foreign
market. At the present scenario, the performance of the organization is not satisfactory due to the
absence of effective marketing strategies.
1.2 Aims and objectives of the project: The aim of the project is to find effective marketing
strategies for Little Collins Kitchen so that the organization can reach up to its potential
customers in the Kenyan market.
Objectives of this study are listed below;
To adopt effective marketing strategies to minimize challenges related to small
business enterprises
To enhance the business development scope by entering into the Kenyan SMEs
market.
1.3 Rationale of this study: The market is growing immensely competitive as each day is
passing. Therefore, every organization needs to have some different strategies to attract the
consumers in the market. It is equally important to make the consumers aware about a business
and this can be done with the help of effective and good marketing strategies (Grant, 2016).
Marketing is that function in the organization that bring down important information about the
scenario in the market. Moreover, with the help of marketing activities that preferences and the
demands of the customers can also be understood. Marketing also involves various strategies
regarding promotion. Promotional activities helps in brand awareness. It is important to have
effective marketing strategies in order to survive in the competitive market. Therefore in this
report some effective marketing strategies will be devised for Little Collins Kitchen so that it can

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Issues in Small Business enterprises in Kenya
flourish in the market. It is important for the marketing managers to understand the fact that,
marketing not only helps in increased volume of sales but also helps in increasing the image and
awareness for the brand or organization (Katsikeas, Morgan, Leonidou & Hult, 2016).

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Issues in Small Business enterprises in Kenya
2.Literature Review
2.1 Marketing as an important function in the organization
One of the biggest misconception in marketing is, marketing refers to the sales of the
product. However, marketing is far beyond it. The department of marketing is one of the vital
departments in the organization that helps it’s to achieve its target. Marketing is defined as a
function in the organization that helps to understand the demands of the consumers so that
consumer friendly products can be obtained (De Mooij, 2018). It also includes the selling and
promotion of the products. Further, marketing includes all those functions that increases brand
and product awareness in the market.
2.2 Challenges of Small business enterprises in Kenya
According to Mazzucato (2015), it is difficult to come up with the right definition and
explanation of the small business enterprise as it is reliant on quantity of outputs like number of
workers, stakeholders as well as varies from one sector or organization to any other. Major
challenges faced by the small businesses in Kenya consist of economic constraints as several
financial institutions find it difficult to consider major loans and investment in Kenya as no
securities will warrant repayment or fine subject to legal agreement or failure to fulfill all the
agreed conditions. As per the observations of Gichuki, Njeru & Tirimba (2014), in Kenya, most
of the small business enterprises in the food and beverage industry focus on the trial and error
strategies. Managerial structure only focus on operational plans rather than the strategic
management in their companies. This is one of the challenges for the business growth. On the
other hand, lack of technological development is another challenge that micro businesses in
Kenya are facing of.
As per the current survey conducted by Kamunge, Njeru & Tirimba (2014), each
managerial position in Kenya regardless of whether in a small restaurant, supermarket chain or
an organization warrants for effective knowledge and skill management. However, research on
this area has revealed the fact that most of the small business managers in this country lack

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Issues in Small Business enterprises in Kenya
sufficient education. Additionally, they are not effectively informed in terms of managerial
capabilities and knowledge.
2.3 Impact of SMEs growth in Kenyan economy
Despite all the challenges, Kenya’s previous year GDP growth is calculated around 6.4%
with small business contributing around three percent. According to the National Economic
Survey organized by the Central Bank of Kenya suggest that small businesses in this country
constituting around 98% of all businesses in this country, creating almost 30% of the jobs
annually along with contributing three percent of the GDP (africanreview.com, 2018). Apart
from the existing challenges involve in the management of small business in Kenya, these
statistical reviews are effective for investing into the market. Though it has been found out that
small business organizations are stuck by insufficient capital, minimize scope of market access,
ineffective infrastructure, insufficient knowledge and development skills along with negative
impacts of rapid developing technological landscape. On the other hand, Anderson, Bell &
Shirky (2015), have found out the fact that corruption and other hostile legal environments drag
up other bottlenecks to the important cog of the economy.
2.4 Marketing and Interdepartmental Relations
Harper (2015) has identified the fact that coordinating is one of the core activities of all
departments within an organization so that as much as development is made in relation to the
overall organizational objectives. It is the dynamic relationship that each organization should be
followed. Therefore, a change is one segment of a company often has consequences upon others.
According to Ross (2017), interdepartmental relations is a difficult process, which almost all
organizations as well as businesses face nowadays. Various departments within a restaurant
business have their individual managers, their individual business atmospheres along with their
own ways of doing things. Keeping up communication in marketing and interdepartmental
relations within a small business enterprise is not so much difficult as compared to
implementation of this type of communication within a leading organization (Lee, Kozlenkova
& Palmatier, 2015). Therefore, small businesses in Kenya should also take care of the fact and at
least try to start implementing interdepartmental communications within.