Challenges to the Growth of Hotel Based Micro and Small Enterprises in Kisii County; a survey of hotel businesses in Keroka - Kenya

Abstract

ABSTRACT The overall objective of the study was to determine the challenges to the growth of hotel MSE businesses in Keroka town, Kisii County Kenya. Specifically the study looked at the extent to managerial skills, financing, regulatory environment and technology affect growth of Hotel MSEs in the town. The target population of the study comprised of 45 hotels from which 30 hotels were randomly sampled. In the study, both primary and secondary data were used. The instrument used to collect data was questionnaires which contained closed-ended questions and was used to obtain primary data which was summarized and analysed using Microsoft Excel Package for descriptive statistics. The results were presented in form of frequency tables. The questionnaires were pre-tested on hotel businesses in Keroka town which were not part of the sample picked randomly from the target population. A pilot test was conducted to establish the accuracy and appropriateness of the instruments for the purposes of improving the clarity of the instrument. From the study it was concluded that financing, technology, regulatory environment and management skills have an effect on the growth of hotel MSES in Keroka. On the basis of the findings it is recommended that more finance be channelled to Hotel MSEs, training be conducted for entrepreneurs in this sector, and regulations be reviewed to make them more friendly to the Hotel MSEs.