Answer to Question #264041 in Marketing for Elena

Question #264041

Identify and discuss with examples four (4) major challenges confronted by the small micro enterprises even before the onslaught of covid 19

Expert's answer
  1. Inadequate managerial training. Small and medium-sized businesses frequently develop organizational strategies through a trial-and-error process. Their management practices are solely focused on operational planning rather than corporate strategic plans. Furthermore, these administrative practices are not common among other worldwide managers. As a result, small and medium-sized business owners and managers are ill-equipped to deal with the issues that face them.
  2. Lack of suitable financing and limited credit access. Many small and medium-sized businesses lack access to finance and credit, particularly from financial institutions such as commercial banks. This is due to the financing conditions they were provided, such as collateral for the loan. Due to their small asset base, many businesses may not give such security as immovable properties.
  3. Rapid technological advancements. Changes in technology provide a significant obstacle to the success of small and medium-sized businesses. Because of the high startup and installation costs, most of these businesses cannot implement new technologies. Furthermore, this new technology frequently does not meet the needs of these businesses. A small business in a rural area, for example, may not be able to reap the full benefits of an internet connection due to a lack of rural electricity. The poor rate of economic growth in Kenya has also delayed adaptation to new technology.
  4. Inadequate knowledge and abilities. Every managerial role, whether at a little shop, a supermarket chain, or a business, requires adequate education and skill. However, research shows that the majority of these firms' management in Kenya lack lacksicient education. Furthermore, they are under-informed in terms of managerial knowledge and skills.

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