Factors Influencing the Growth of Small-Scale Restaurants in Nakuru Municipality-Kenya

Abstract

Small and Medium Enterprises (SMEs) comprise the largest proportion of business in most developing economies and frequently offer the largest potential for job creation. A great deal of research has been undertaken in the area of small businesses noting that most of the jobs are created through SMEs and self-employment. SMEs are regarded as an essential element of economic growth; however, the number of small enterprises that grow in terms of number of employees and turnover are very few the purpose of this study therefore was to investigate the factors that influence the growth of small-scale restaurants in Nakuru municipality. The research method used in this study was a survey. A sample of 80 restaurants was selected using stratified random sampling. Using personally administered questionnaire, data was collected from restaurants managers/owners. Data analysis was done using both qualitative and quantitative methods. The findings of the study indicate that small – scale restaurants in Nakuru Municipality have been growing in terms of the number of employees, turnover and expenses. The growth of the restaurants is mainly influenced by both internal and external factors such as cleanliness, fresh food and location. Also the availability of Kenyan dishes attract more customers in restaurants, while the presence of food vendors is the greatest challenge facing the growth of restaurants. With a more favorable government policy and concerted effort by restaurant operators to grow their businesses, they can contribute positively in the Kenyan economy.