n Journal of Emerging Trends in Educational Research and Policy Studies - Business competitiveness in the informal sector in rural areas against a background of regulatory frameworks : a study of SMEs in Kesses Division, Uasin Gishu District, Kenya

Volume 3, Issue 6
  • ISSN : 2141-6990
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Businesses in the informal sector in the rural areas (such as those found in Kesses division, Uasin Gishu District) are constrained largely by the problems associated with the government's regulatory frameworks, relative to their urban counterparts. This is contrary to the general view that urban-based enterprises are more negatively affected by the regulations as opposed to rural enterprises. This could be mainly because urban-based entrepreneurs know how to evade the authorities and effectively manage the consequences and costs of noncompliance, or comply and make minimal profits. However, rural-based entrepreneurs have demonstrated a rare ability to get started, grow, compete and survive even longer than some urban-based SMEs even when they choose to comply. Currently, few studies have been done to establish this unusual resilience of rural SMEs. The main aim of the study was to shed more light on how government regulatory frameworks and procedures affect business competitiveness of rural-based enterprises. This was done bearing in mind that government regulatory frameworks have costs whether an entrepreneur complies or not. More specifically, the study looked at the impacts of government regulations and procedures on the competitiveness of rural-based SMEs as exemplified by those in Kesses Division, Uasin Gishu District, Kenya. The findings of the study would be used to improve the policy environment since the real impacts of the regulatory constraints would have been brought to light. This would then assist in the improvement of the rural SMEs and hence the sector as a whole in its development and provision of employment.

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