The Mobility and Growth Enterprises: of Small Furniture a Case of Western Kenya Production

Abstract

In the industrialization process of any developing country, every sector and sub-sector of the economy has to play its part. The purpose of this sub-sector study on the mobility of the Small Furniture Production Enterprises (SFPEs), was to determine the extent to which SFPEs are mobile and how frequently they change their business locations; the effect of such mobility on their growth, and, what causes the mobility. It was based on the 'Fordist' mass production theory but also informed by the collective efficiency theory. The study is an explanatory correlation expost-facto research where correlation research design was used. Quantitative and qualitative questionnaires, face to face interviews, data and observational were collected checklists by use of from randomly selected respondents. Data was analysed quantitatively and qualitatively using descriptive and correlation analyses. The study shows that SFPEs are mobile. Most SFPEs with four or more years in furniture production shift at least once (64.5%) and (32.6%) move two or more times. The majority of the SFPEs (80%) operate in the 1 51 and 2 nd quartiles of a calculated Technological Complexity Index. There is a significant association between an enterprises mobility and its accumulated productive assets (coefficient of correlation r predictive relationship can be developed. The = coefficient 0.143(p<0.05)), of but no correlation of r=0.194(p<0.05) indicates a significant association but no causative relationship can be established between an enterprise's mobility and its entrepreneur's level of education an training. The major causes of SFPEs has been shown to be customer related problems 111(47.9%), debts (40.3%) and disturbances by the landlords and high business premises rent reported by 37.8% of the respondents. The study provides new insight into developmental factors of the furniture sub-sector that may be used in the fo~ulation of policies, intervention strategies and measures that will enhance the sub-sector involvement in the industrialization suggests process. The study findings that intervention measures should be directed to the sub-sector in clusters, industrial districts, or technoparks to exploit the collective efficiency development and not to individual entrepreneurs or individual firms