Determinants of the Informal Sector Performance in the Semi-Arid Areas of Kenya: Evidence from Makueni District

Abstract

The general objective of this article was to investigate the factors that determine the performance of woodwork and metalwork enterprises in Makueni District. The results showed that working capital, licensing, competition and the level of education were statistically significant in determination of profits. Based on the findings, it is recommended that the government and other stakeholders should provide both financial and non-financial services at affordable rates to the small business operators and entrepreneurs. Loans inform of money or kind should be made available through relevant lending institutions to supplement the working capital. Seminars and conferences should be held to create awareness to the entrepreneurs of the various incentives and credit facilities provided by the government and other stakeholders. To reduce the level of competition, the government should allocate land to the entrepreneurs and structures put up at affordable rates.