Micro and Small Enterprise Sector and Existing Support System with emphasis on High-Tech oriented Entrepreneurship in Kenya

Abstract

The significance of Kenya’s micro and small enterprises (MSE) activity has continued to grow since the sector was first brought to the limelight in 1972. In Kenya, it is now recognized that the promotion of the MSE sector is a viable and dynamic strategy for achieving national goals, including employment creation, poverty alleviation and balanced development between sectors and sub-sectors. Together, all this form the foundation of a strong national base and domestic production sector that is central to the government’s vision of achieving a newly industrialized country status by the year 2020. According to Kenya’s National Development Plan (1997), the MSE sector has been growing in importance both as a source of employment as well as innovative technologies. However, industrial technology development in Kenya is yet to take off. Kenya still relies heavily on imported technology. The plant and machinery that most MSEs use to produce goods and services have little technology (know-how) value. Due to the foregoing, the study reviews the current technological situation of the MSE sector in Kenya to determine the extent of government support services. The study also seeks to analyze how best this support can be delivered to help MSEs develop their technological capacities. The methodology that the study uses to achieve its objectives is documentary analysis and analytical narrative. The main finding of the study is that the major constraint in the MSE sector’s ability to upgrade its existing technological base is lack of national support. This weakness has undermined the development of indigenous labor intensive and local resource-using technologies. Key Words: micro and small enterprises, technology