How the government planned to promote entrepreneurship

  1. The development plan laid down proposed to implement small scale industrial policy
  2. Review the central and local government regulations that a hindrance to entrepreneurial development.
  3. Provision of direct assistance to the small scale businesses all over Kenya.
  4. Establishment of an organization that would give extension services to the small scale enterprises.
  5. Creating and strengthening institutions and schemes for the assistance of the small enterprise sector
  6. Establishment of credit guarantee schemes for loans given by commercial banks
  7. Establish procedures to improve small scale training through the ministry of technical training and Applied Technology.
  8. Overhaul the education system i.e introduction of the 8.4.4 system.
  9. Establish a full fledged small industrial division in the ministry of commerce and industry – which gave rise to the District focus for rural development.
  10. Introduction of entrepreneurship education is all levels of training.

Economic, Social and Political Factors Affecting Entrepreneurial Development

High taxation levels. For business and personal incomes
Which in effect reduce profits earned making it un attractive to engage in business
Taxation of raw materials and other inputs raise production costs.

  1. Corruption and official harassment
    Occurs where entrepreneurs are forced to bribe officials in various government departments to allow operation or start up.
    Raids under one pretext or another which tends to be very harassing.
  2. Unregulated competition from the outside world due.
    Liberalization which opened importation competing locally produced goods.
  3. Declining personal incomes of people due to
    Over-increasing cost of living
    Arise in unemployment
  4. The high cost of finance
    The cost of borrowing is high
    Business collapses because they lack ability to repay loans.
  5. Lack of necessary skills and knowledge due to
    lack of training opportunities
    high education costs
  6. Poor transport and communication network
  • making business difficult
  • Inconveniencing consumers
  • High energy costs
  • Lack of entrepreneurial culture
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