International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Role of Local Authorities in the Development of Micro and Small Enterprises in Kenya: Case of Naivasha Municipal Council
Waichungo Njuguna Peter

The purpose of this study was to establish the role of local authorities in the development of Micro and Small Enterprises in Kenya. The study paid emphasis on the devolved funds under local authorities’ disposal, provision market infrastructure, participative decision making and support services provided by the local authority to the business environment. Descriptive design was adopted in the study. The population comprised of staffs of Naivasha Municipal Council and business people operating small businesses in the wards under Naivasha Municipal Council. Stratified random sampling technique was used to choose the sample. A self-administered questionnaire and an interview guide were used to collect the data. The complete filled in questionnaires will then be coded to facilitate analysis. Data analysis was conducted using descriptive statistics which included frequency distribution tables and measures of central tendency (the mean), measures of variability (standard deviation) and measures of relative frequencies. A linear regression model was also adopted to establish the form of relationship between the independent variables and the dependent variable. The study found out that there was a significant relationship between development of micro and small enterprises and devolved funds, participative decision making and support services. The study concludes that LATF funds failed to account and implement local priorities; there was also little community participation from members in local planning within the council planning and provision of services. The study recommends that priorities should be given to projects such as projects such as infrastructure, water projects etc. participative decision making is also very crucial in any project implementation within a group.

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