Effect of Business Regulatory Procedures on Growth of Youth í’wned Small Medium Enterprises in Kenya: A Case Study of Ruiru Sub County

Abstract

Studies in Kenya regarding registration and certification of SMEs demonstrate a complex and tedious process that require money and time. This study aims at assessing the influence of registration procedures on growth of youth owned SMEs in Ruiru Sub-County, Kiambu County in Kenya. A descriptive survey design was adopted for this study. This study targeted all the 571 SMEs run by Youths in Ruiru town and have benefited from the Youth Development Fund. A sample size of 235 respondents operating in Ruiru Sub-County market, Kiambu County, Kenya was selected. Questionnaires were administered to the youths who were sampled. Priori coding and descriptive statistics was utilized in analyzing the data collected. Analyzed data was then presented using appropriate frequency tables illustrating the registration factors that influence the growth of Small and Medium Enterprises in Kenya with a specific reference to SMES within Ruiru Sub-County market. From the study findings, the key steps that the SMEs were supposed to go through so as to begin operations in Ruiru Sub-County are business permit from the local authority, business name registration, PIN from Kenya Revenue Authority and stamp duty registration. The cost of the registration procedures is very high and highly complex while the process of obtaining approvals for doing business is very challenging in Ruiru Sub-County. From the study findings it can be concluded that registration procedures influence the growth of youth owned SMEs in Ruiru Sub-County.