EFFECT OF UNLICENSED BUSINESSES ON EFFICIENCY OF

COUNCILS

A CASE STUDY OF KIKUYU TOWN COUNCIL

BY MAHEA TIMOTHY KIMANI

L/123/569/2002

A PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE

AWARD OF THE DIPLOMA IN BUSINES MANAGEMENT,
UNIVERSITY OF NAIROBI

AUGUST, 2003

1
 DECLARATION

This research project is my original work and has not been presented for
a degree or diploma in any University.

NAME : MAHEA TIMOTHY KIMANI

REG NO. : L123/569/2002
SIGNATURE …………………………
DATE …………………………

This research project has been submitted for examination with my

approval as University Supervisor.

NAME : EVANS VIDIJA SAGWA

DESIGNATION : LECTURER
SIGNATURE ………………………….
DATE ………………………….

2
 DEDICATION

I dedicate this work to my father Stephen, my mother Margaret who as

my parents enriched me with education and shaped my future to make me
who I am today. I also dedicate this work to my sister Evelyne, my
brothers Mark and Crispus for their support, guidance and
encouragement which enabled me to achieve my goal and above all for
their enduring love to me.

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 ACKNOWLEDGEMENTS
Foremost, I am grateful to God for his care and assistance. I would like to
take this opportunity to thank the following people for their assistance,
which gave value to this project.
• Mr. Simon Kamau
• Mr. Saruni Ole Kudate, Deputy Town Clerk Kikuyu
• Mr. Martin Mukuria
• Mr. Joseph Karanja
• Mr. Kiruri
• Mr. Danson Kahura
• Mr. Amos Otuma
I register my profound gratitude and sincere acknowledgements to my
informants, my fellow students who have assisted me in diverse
capabilities. I appreciate the efforts of Martin Mukuria who inspired me
to begin this course.
I also express my indebtedness and special gratitude to Mr. Evans Vidija
Sagwa who was my supervisor. His insightful criticism, scholarly
comments, academic challenges and constructive dialogue were an
invaluable inspiration in the completion and quality of this project.

In the bibliography, I duly acknowledge with gratitude the authors of the

data used.

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 ABSTRACT

The council authorities play a major role in developing a country and

earning it a place compared to the others. They provide essential services
to the society, which are important to us in our day to day lives. The
revenue it earns and external funding aid the services they provide.
Services provided should be of high quality, reliability and convenient.

This research project investigated the effects of unlicensed businesses on

efficiency of the council. The study sought to know the views of the
council, the business owners and the residents of the Kikuyu area who
receive services from the Kikuyu Town Council and also are customers
of the businesses around the area.

To get qualitative information three types of questionnaires were

developed and distributed to all the parties respectively. The responses
were keenly analyzed and the data well recorded in order to know the
views of each party.

Much precaution was applied to ensure that the respondents did not
introduce biasness in the research so as to come up with valid findings
and know the situation as it is on the ground. The findings were analyzed
in pie charts, graphs and tables. Recommendations were given to promote
efficiency in the council and for better provision of services.

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 TABLE OF CONTENTS

PAGE PAGE NO
Title Page ……………………………………………… (i)
Declaration ……………………………………………. (ii)
Dedication …………………………………………….. (iii)
Acknowledgements …………………………………… (iv)
Abstract ………………………………………………. (v)
Table of contents ……………………………………… (vi)
List of tables…………………………………………… (viii)
CHAPTER ONE – INTRODUCTION

1.1 Introduction ……………………………………… 1

1.2 Statement of the Problem…………………………… 2
1.3 Purpose and Significance of the Study ……………… 2
1.4 Research Questions/Hypothesis/ Objectives of the Study 5
1.5 Scope and Limitations of the Study ………………… 6
1.6 Basic Assumption …………………………………… 7
1.7 Defination of Terms ………………………………… 8
1.8 Organization of the Study …………………………… 9

2.0 CHAPTER TWO – LITERATURE REVIEW

2.0 Literature Review ……………………………………. 11

2.1 Regulation of Business ……………………………… 11
2.2 Provision of Services ……………………………….. 12
2.3 Customer Satisfaction ………………………………. 13
2.4 Consumer Protection ……………………………….. 14
2.5 Service Standards ………………………………….. 15
2.6 Employee Motivation ……………………………… 16
2.7 Economic Conditions ……………………………… 18
2.8 Political (Legal Environment) ……………………... 19
2.9 Business and Society ………………………………. 20
2.10 Awareness of Major Social Problems …………….. 21
2.11 The Problem of Corruption…………………………. 22

3.0 CHAPTER THREE – RESEARCH METHODOLOGY

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 3.0 Research Methodology ……………………………… 24
3.1 Research Design …………………………………….. 24
3.2 Sources of Data ……………………………………… 24
3.3Target Population…………………………………….. 24
3.4 Sampling Design ……………………………………. 25
3.5 Instruments of Data Collection ……………………... 25
3.6 Data Collection Procedure ………………………….. 27
3.7 Data Analysis Procedure ……………………………. 27

4.0 CHAPTER FOUR – DATA ANALYSIS

4.0 Data Analysis and Findings ………………………. 28

4.1.1 Customers Perception of Small Businesses
around Kikuyu Area ……………………………. 29
a) Purchase from Small Business Operators ……. 29
b) Reasons of Purchase from Small Business Operators 30
c) Satisfaction …………………………………. 31
d) Importance of Unlicensed Businesses ………. 32
e) Prevention of Unlicensed Businesses ……….. 33
4.1.2 Views of Small Business Traders ………………... 34
a) Period of Operation ………………………….. 34
b) Rate of Consumers Served …………………… 34
c) Major Problems Encountered ………………... 35
d) Services Received ……………………………. 36
4.1.3 Views of kikuyu Town Council …………………. 38

5.0 CHAPTER FIVE – SUMMARY AND CONCLUSIONS

5.0 Summary and Conclusions ………………………… 41

5.1 Findings of the Study ………………………………. 41
5.2 Recommendation …………………………………… 43
5.3 Recommendations for Further Research ……………. 46

BIBLIOGRAPHY ……………………………………………. 47
APPENDICES:
Appendix I Questionnaire I……………….. …….. 48
Appendix II Questionnaire II……………………... 50
Appendix III Questionnaire III ……………………. 52
Appendix IV Time Plan ……………………………. 55
Appendix V Budget Plan ………………………….. 56

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 LIST OF TABLES

Table Number Title Page No.

4.0(a) Purchase from Small Business Operators ……… 29

4.0 (b) Reasons for Purchase from Small Business Operators 30

4.0(c) Satisfaction ……………………………………… 31

4.0 (d) Importance of Unlicensed Businesses ………….. 32

4.0 (e) Prevention of Unlicensed Businesses ………….. 33

4.0 (f) Period of Operation …………………………….. 34

4.0 (g) Rate of Customers Served ………………………. 35

4.0 (h) Major problems Encountered…………………… 35

4.0 (i) Rating of Services Received ……………………. 37

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 CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study

Within the Republic of Kenya, for many years, there have been
unlicensed businesses operating with the members of the public
being aware of their existence. Some members of the public have
been customers of unlicensed businesses knowingly or
unknowingly. Out of the revenue collected, the Councils
Authorities are supposed to spend some of the amount on cleaning
the environment through garbage collection, provision of basic
infrastructure like water resources, roads and markets, and also
save some amount which can be used in future intended projects
like construction of schools, hospitals, sanitations and security
provisions.

The Councils Authorities are often faced with the problem of

dealing with unlicensed businesses, which are increasing rapidly,
and the situation has proved to be deterring the efforts of the
Council. For instance, the Kikuyu Town Council has been forced
to destroy kiosks and illegal structures constructed at matatu stages
and along roadsides. The Council askaris have also been involved
in constant running battles with hawkers in an effort to eliminate
the hawking business. In a previous survey carried out in the
Kikuyu area, which is under Kikuyu Town Council, it was found
that most of the unlicensed businesses deal with illegal products
like illicit brews and counterfeit products. The Council has also

9
 had to cultivate a good relationship with members of the public so
that they can help them know the businesses existing illegally so
that appropriate action can be taken. Councils ought to ensure that
they put in place measures that help it earn the revenue it is
supposed to earn and closely monitor businesses to attain the best
results, and a realistic projection of its financial obligations and
services to its residents.

1.2 Statement of the Problem

Efficiency of the Councils has not been fully achieved despite their
efforts. One of the major hindrances is thought to be the unlicensed
businesses that are increasing rapidly. These businesses are
considered a security threat, environmental risk and have an impact
on the society in various ways since most of them do not satisfy
the required set standards. For the Councils to be efficient, they
have to ensure that they take all the measures in the best way
possible. These issues concretize the important point of eliminating
unlicensed businesses. The researcher intends to establish ways of
keeping such businesses in check.

1.3 Purpose and Significance of the Study

The purpose and significance of the study was: -

a) To investigate how unlicensed businesses came into
existence, why they came into existence and how they
can be eliminated.

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 b) To establish the kind of customers this businesses target
and their social status.
c) To find out ways of ensuring that this kind of businesses
do not have room for existence in future.

The result of this study will be important to various groups of

people in various ways: -

Consumers
In most cases, consumers are often faced by problems of buying
substandard goods, imitated and defected products. The findings of
this study will create awareness of the unlicensed businesses
existence and educate them on their effects. They will also be able
to know the best places to shop their items.

Businessmen.
With the knowledge attained concerning unlicensed businesses and
substandard products by the genuine businessmen, it will help
them supply to consumers the products that are from licensed
businesses and that are up to the set standards. It will also enable
them to exercise extreme caution especially when buying products
to ensure they attain those that are of high quality and
performance.

Councils
Unlicensed businesses are a threat to efficiency of the Councils.
The Councils will benefit from the result because they will get
information that will help them in tackling the problem and putting
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measures in place to prevent such businesses from operating in
future. The revenue collection would be greatly improved and
security and environmental pollutions manageable.

Government
Through legislations the government will be able to formulate
ways of dealing with unlicensed businesses and the offenders of
the law who lie in that category. Loss of revenue will be put under
control.

Investors
The investors will benefit when unlicensed businesses are
eliminated because they will be sure that there will be no
counterfeiting of their products. This will go a long way in helping
acquire the revenue they deserve and the consumers will have the
right perception of their products.

Society
When the councils are efficient, they are able to create a condusive
environment for investors and the society at large. The society will
benefit from the good services that the Councils will offer and
from investors who may invest in the area through improvement of
infrastructure and through employment.

Research
The findings of the study will also contribute much to the available
literature, which can further be used in future research references.

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1.4 Research Questions/Hypothesis /Objectives of the Study.

The following research questions were used as a guide to the

study: -
a) What is the view of members of the public regarding the
existence of unlicensed businesses in their society?
b) Are the customers of unlicensed businesses satisfied with
the kind of products or services that are offered?
c) What effect do unlicensed businesses have on the area
they operate in, the customers and competition in the
market?
The hypothesis of this study included the following: -
a) Lack of awareness among consumers has promoted the
existence of unlicensed businesses.
b) Efficiency in the Councils can be achieved if much effort
is put in to deal with the problems encountered.
The main objective of this study was to establish the main reason

leading to the existence of unlicensed businesses. Specific

objectives included the following: -

a) To find out why consumers of the products prefer buying

from unlicensed businesses rather than buying from licensed
businesses.
b) To investigate how the Kikuyu Town Council has dealt with
previous problems of unlicensed businesses and the
penalties given if any.
c) To offer suggestions on measures that can be put in place to
eliminate unlicensed businesses.

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1.5 Scope and Limitations of the Study

(a) The scope

The study was carried out at Kikuyu Town Council, at random
selected businesses and randomly selected residents in the area. It
was also stretched to Nairobi City Council, which is in charge of
the Capital City of Kenya. The respondents in this study included
businessmen, the governing body of the councils and members of
the public who are also the consumers.

(b) Limitations.
There are some factors that limited the progress of the study. They
included: -

Respondents
The researcher had a difficult time when gathering information
from the respondents. Some of them might have not fully provided
the required data due to fear of intimidation. Some of the
respondents ignored the most sensitive questions while others did
not fill all the questions in the questionnaire.

Finance
The study involved traveling to various areas to gather
information. It also involved preparation and distribution of
questionnaires. After information gathering, arrangement and
analysis of data and the preparation of the final report was
required. Large sums of money were required which were not

14
 available since the amount financing the project had to be properly
budgeted to sustain all the requirements up to its completion.

Data sources
There was lack of documented information in some areas required
to be studied and most information to be gathered was from the
respondents. Some of the respondents may have introduced
biasness in the study if they gave incorrect information. Also in
some areas the data sources were scarce and this might have
affected the study since the project had a time limit.

Time
The project was carried out within a period of six months. The
time might not have been sufficient for exhaustive investigation
and survey.

1.6 Basic Assumptions

The study was based on the following assumptions: -
a) That unlicensed businesses exist illegally.
b) The Councils are devoted to eliminating illegal
businesses in the market.
c) That the Councils would like to deliver the best services
to members of the public and work to everyone’s
satisfaction.
d) That members of the public have a good perception of
the Council where it shows commitment to provision of
good services to the society.

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 e) That where Councils have eliminated unlicensed
businesses there is improved efficiency and a good
relationship with members of the public developed.
f) That efficiency is achieved where an organization clearly
defines its objectives and works towards the realization
and achievement of their intentions through working
together and all members of the organization feeling
responsible at their level of operation.

1.7 Definition of Terms

Unlicensed Businesses
Any business operating without a valid license from the government.
It may take place in two ways: either it may have acquired a license
initially but after it expired, it was never renewed or it may have
never acquired a license because the owner does not want to acquire
one or the business is not legal according to the law therefore cannot
be licensed.

Town Councils
These are elected governing bodies of towns. They have the power to
make by laws, rules, regulations and decisions for towns and
enforcements.

Kikuyu Town Council

An elected governing body of Kikuyu Town in Kiambu District.

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 Council Askaris
They are people who are employed and trained by the Council to
undertake, among other duties, apprehension of people who in their
course of business break the by laws made by the Council.

Hawkers
Individuals who carry out their businesses on temporary or moveable
structures. They carry out their businesses on pavements in the
streets, at the roadsides and in undeveloped government or public
utility land.

Kiosks
These are business structures similar to constructed shops, which deal
with various items depending on the objectives of the owner, but
usually have few items and are small-scale businesses.

1.8 Organization of the Study

The organization of the study was as follows: -

A financial budget was set out to cover transport, stationeries,
photocopying, binding and other overhead costs. Questionnaires were
constructed and distributed to owners of unlicensed businesses, to
members of the public around the Kikuyu area and outskirts centers
of Nairobi and one questionnaire to the governing body of Kikuyu
Town Council.

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Interviews were carried out with the Kikuyu Town Council governing
body and with some of the employees in that organization. Also
interviews were conducted with members of the public who are the
main customers of the items supplied by various businesses.
Where possible, some of the customers of unlicensed businesses were
observed as they purchased various items without fear or hesitations.
The responses that were received from Kikuyu Town Council
governing body, members of the public and owners of unlicensed
businesses were analyzed through editing, coding and tabulation
methods. The findings and recommendations were done based on the
data that was analyzed. Recommendations were given to benefit the
parties involved and for further research.

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 CHAPTER TWO
2.0`LITERATURE REVIEW
The researcher reviewed literature related to the research as
follows: -

2.1 Regulation of Business

In a newspaper supplement in the Daily Nation of May 6. 2003,the
Nairobi mayor Mr. Joe Akech observed that, “…. constant running
battles between the hawkers and Council Askaris does not help
much in streamlining business in the Central Business District
Area”.
From this experience it follows other Town Councils have to learn
how to come up with better ways of conducting business. This may
involve the licensing of the hawking business and allocation of
areas where individuals can conduct their businesses. This helps in
keeping the central business area clean and also ease congestion of
vehicles and individuals. Accessibility is also enhanced to the
convenience of customers since they are able to access the
products they want easily.

The Councils need to create areas where businesses can be

performed in an effort to give a permanent solution since the
hawkers want to carry out business like other individuals. With
their small capital and in a combined effort, the Council can be
able to provide business premises spaces and at the same time have
a revenue source.

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2.2 Provision of Services
The service received by individuals from the Council goes a long
way in creating a perception in individuals about the Council.
Whether the perception is good or bad depends on the kind of
services they get. In a newspaper supplement in the Daily Nation
of May, 6,2003, the City Council of Nairobi Town Clerk, Mr. Jack
Mbugua noted that “…. The major changes undertaken are to de-
congest the paying halls, and to ensure that the pay-in counters are
well marked……………. The revenue collection has also
improved”.

This follows that the customers will be able to easily identify the
counters and pay their bills and taxes comfortably and
conveniently. The customers will have a good perception of the
Council and will see an improvement to the right direction. The
quality of service received is what determines people’s loyalties
and satisfaction. Whenever the services expected are received and
to the satisfaction of the people, good communication is achieved
such that whenever there is a problem hindering the provision of
the services, people will understand and will not complain. When
individuals are satisfied they become advocates of the organization
through their comments.

According to Watkins (1997), the quality of service depends not

only upon the efficiency of the methods and physical facilities, but
it is also heavily reliant upon the knowledge, skills, enthusiasm
and loyalty of the staff. It is important to have very qualified
personnel to enable efficient service provision. Each member of
20
 staff should feel part of the organization and feel responsible at his
level of operation.

2.3 Consumer Satisfaction

Consumer satisfaction is attained when consumers get products or
series that are of high quality. When a consumer gets a product of
high quality and performance, and the product benefits him to the
fullest, the consumer feels satisfied. The same case applies to a
service which when provided in the best way possible leaves the
consumers satisfied. Consumer satisfaction is determined by many
factors like: -
i. Where the product or service is received,
ii. The manner in which it is given,
iii. The quality and performance of the product or service,
iv. The convenience of getting it,
v. Whether it satisfies the required needs.

These factors need to be considered if consumer satisfaction is to

be achieved. The person dealing with customers who are also
consumers should be having the required skills and knowledge to
ensure that communication between them is done in the right way.
They should be able to treat the consumers in a way they feel
comfortable (Samuelson and Nordhaus, 1995).

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2.4 Consumer Protection
The government has supported and also put in place measures to
protect consumers from being exploited by the producers and
retailers. The kind of protection given is divided into two
categories: -
1) Regulations- this are prescribed by the status and
administered by the central government and the local government.
2) Activities initiated and directed by voluntary
organizations to exert pressure on manufactures and
distributors to remedy defects or redress genuine
complains, improved trade practices and standards,
and initiate legal action for redress.
Consumer protection plays an important role in the society. Most
consumers are not aware of their rights. Those who know their
rights and they are infringed, do not know the proceedings to
follow, or, they are not willing to spend their resources in terms of
time and finance on law suits. It therefore follows that it is
important for the government to take action to protect consumers.
The basic functions of consumer protection are: -
a) To protect consumers against sale of goods of
poor quality.
b) Protect consumers from being sold products
that do not indicate ingredients used in
manufacturing a product.

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 c) Protect consumers from being provided with
services that are of inadequate nature.
d) Protect consumers from being sold items that
are of the right weight and measures.
e) Protection from the failure of retailers or
producers to uphold conditions set out or
implied in contracts, executed for goods and
services.
This protection keeps the producers on their toes because they
know they have to follow the laid down procedures. Since they
know the remedy, they try and observe the law and this ensures
that the consumers get the best (Samuelson and Nordhaus, 1995).

2.5 Service Standards

Duty performance – a duty is a responsibility that is entrusted to
an individual or to a group of individuals. A duty well done is
satisfaction to everyone. The way a duty is done determines many
other factors that follow after. It also tells people something about
the person who performed the task. If a duty is poorly done, people
may think that the person performing the duty is lazy or is
demotivated or not committed to his job. But when a duty is well
done, it shows that the person doing it is committed to the job or is
hard working or he enjoys doing it. Something well done is eye
catching and attraction to many people. For instance, when an
individual takes his vehicle to a car washer and it is cleaned
thoroughly, he will notice that and will feel like always wanting to
have his vehicle cleaned at that place. This helps a lot in winning
the confidence of people.
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 Handling complaints – any complain resulting from delivery of
services should be handled with a lot of seriousness. Ways of
solving the problem should be immediately established and a
permanent solution be put in place to prevent that from recurring in
future. The staff dealing with the customers and who handle the
complaints should have the necessary skills needed in dealing with
people. They should be able to handle complainants and
appropriate action taken to solve the problem (Watkins, 1997).

2.6 Employee Motivation.

The primary task of an organization is to ensure productivity as
such the primary task of the management therefore is to ensure that
this objective is achieved by seeing that subordinates staff work
efficiently and produce results that are beneficial to the
organization. Various things can be done to motivate employees.
They include: higher pay, prestigious title, nametag praise,
recognition and responsibility. Studies carried out have shown that
motivated employees perform better than demotivated employees.
Therefore, to induce people so that they can contribute efficiently
and effectively, motivation is necessary if at all the goals of an
organization are to be achieved. The management needs to
understand the behaviour of their subordinates. The driving force
that makes employees work is the desire to satisfy a need. But if
they work and their needs remain unsatisfied they may result in
irrational behaviours. This may include:
a) Aggression – This is a destructive behaviour such as

hostility (physical/verbal) and striking out. The feelings

24
 of rage or hostility are directed against the person or
object that is felt to be the cause of frustrations.
b) Rationalizing – means making excuses such as blaming

someone else for inability to accomplish a goal.

c) Regression – means not acting one’s age by resulting to

immature acts e.g. unreasonable complaining or crying.

d) Fixation – occurs when a person exhibits the same

behaviour pattern several times even though the

experience has shown that it can accomplish nothing.
Research has shown that frustration can maintain old and
habitual responses and prevent the use of new and more
effective methods.
e) Resignation (apathy) – occurs when people lose hope of

accomplishing their goals and withdraw from reality and

the source of their frustrations. It involves complete
surrender and borders on serious mental disorders. This
phenomenon is characteristic of people in boring, routine
jobs, where they resign themselves to their goals.
The organizations should create an environment in which people
feel the burning desire for work and the willingness to exert high
levels of effort to achieve a predetermined reward or goal (Stewart
and McGoldrick, 1996).

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2.7 Economic Conditions
Development is brought about by the growth of the economy.
When the economic situation of a country is registering good
performance, people’s standards of living improve and they
become independent. In a developed economy people are assured
of the basic needs, therefore they get a chance to plan their future
and their way of survival. On the contrast, in the case of a poor
performing economy, things are usually negative people standards
of living are low and poverty is evident. The rate of unemployment
is very high and some of those employed get little pay that just
enables them to survive but they cannot do anything beyond that to
better their lives. In such a case, insecurity increases and people
tend to break the law in order to survive. People usually in such
circumstances, would do anything or do any kind of business in
order to get money. This leads to an increase in theft, corruption,
violence, increase in the black market and sale of illegal items. It
also leads to increase in small illegal businesses like sale of illicit
drugs and illicit brews, loss of self-esteem and degrading of human
value.

The economic conditions in a country, such as level of

development, natural resources, income distribution, availability of
technical personnel, supply of power, development of transport and
communication and other infrastructure are important factors to
consider in an economy. Some of the economic policies that
government applies have major setbacks and a negative impact on
the growth of an economy.

26
2.8 Political (Legal Environment)
Political - legal environment has direct economic impact on
business firms. The government can play a supportive role to
encourage business enterprise and regulative role to control
business enterprises in the interest of public good. For example, the
Local, State and Central Government can undertake many steps to
encourage or protect business enterprises through tariffs, tax
incentives, low interest loans, granting free land, providing
adequate transport, power and communication, investing in basic
and heavy industries, invest heavily in basic research, granting tax
incentives to develop industries in under developed areas,
protecting industries from undue foreign competition and
enforcing the various regulations regarding practicing of business.

The political- legal environment is the background laws and

regulations enacted by the government – local, state and central –
under which the business enterprises have to carry on their
business activities. This environment provides opportunities to the
business firms, poses challenges and creates hardships and
problems for them. The government thus strongly interacts with
business firms, influences their business policies, encourages and
regulates them.

The government generally plays four roles as it interacts with

businesses. It performs both “supportive” and “regulative”

27
 functions by enacting legislation to control and regulate the
business enterprises in the national and public interest (Berndhardt,
1978).

2.9 Business and Society

A business enterprise is a part and parcel of the society in which it
exists. Although the primary objective of a business firm is to earn
profit, it exists because it satisfies the needs or services required by
the society. While operating for a profit a business entity cannot
completely overlook or be indifferent to its social responsibility.
While supplying the goods and services wanted by the society, a
business company performs many functions such as providing
revenue to the government, both state and central, by way of
paying different taxes, developing the economy through
investment of funds, providing employment and contributing to the
development of the local area in which it operates in performing all
these functions the business company interacts with different strata
of the society such as the government, customers, suppliers,
investors, employees and the general public. All these different
people interact and influence the business enterprise, which in turn
influences them also. Thus it will be seen that there is a close
relationship between the business and the society and that one
cannot be separated from the other. Therefore, this close
relationship and the different roles played by the business, the
society expects the business to play an active role in realizing

28
 social problems such as environmental pollution, community
housing, basic infrastructure, education, and secure atmosphere
(Koontz and Weihrich, 1984).

2.10 Awareness of Major Social Problems

This includes problems such as pollution of the environment and
the ecological debasement. Pollution of air, water, and noise
pollution is already a major problem. Large industries create
ecological problems, which threaten public life. Concentration of
industries also creates problems of housing, sanitation, slums and
health. There is the problem of unemployment of local labour,
training of workers and health care. The society expects that large
business concerns should tackle these problems and help the
society to improve its quality of life. People’s beliefs and values
vary between different cultures.

There are also a number of demographic factors such as age and

sex composition of the population, size of the family, religion, and
the geographical area, which also influence business. Social
environment has acquired greater significance in recent times. If
businesses would undertake activities like supporting creative arts,
spreading education, encouraging various sporting activities,
encouraging communication, and improving health facilities, they
will not only help to improve quality of life but will justify the
reasons for their existence (Hill and Jones, 2001).

29
2.11 The Problem of Corruption
The huge dimensions of the problem of corruption on African
Nations are reflected in the following observations of Nigerian
society made more than ten years ago by Mr. A. Tokunboh,
permanent secretary, Federal Ministry of Establishments.

“………. All efforts to establish a just and efficient administration

have been frustrated by corruption. The evil exists in every facet of
our society. You bribe to get your child into a school. You pay to
secure a job. You dash the tax office to avoid paying taxes; you
pay the policeman to evade arrest. This catalogue of shame can
continue without end (quoted in Aina 1982, pg 71)

According to a number of writers the nature and extent of the

problem has changed little in the intervening period (e.g. Aina
1982; lamb, 1982).

The major problem with fighting corruption is that those whose

duty is to reveal corruption only do so when forced by external
pressure, and then claim that instances sited as evidence are
isolated and rare occurrence (Caiden and Caiden, 1977).

Blunt and Popoola (1985), observe that where there are conditions
of extreme inequality, absolute poverty, and widespread lack of
basic need satisfaction, the incentive to corrupt whatever official
purposes formal work organizations are agreed to have is almost
irresistible.

30
Corruption can be fought through ensuring that desired rewards are
clearly and consistently made contingent upon behaviour directed
at satisfying organizational, as opposed to purely personal
objectives. (Blunt and Popoola, 1985).

31
 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

The resources and types of information that were used to facilitate
the study are discussed in this chapter. It also discusses systematic
investigations to establish why consumers prefer buying products
from unlicensed businesses rather than licensed businesses.

3.1 Research Design

Descriptive research was used so as to get qualitative data. This
helped in examining a problem further and be able to ascertain and
describe the characteristics of pertinent issues.

3.2 Sources of Data

Sources of data included the governing body of Kikuyu Town
Council, owners of unlicensed businesses, customers, newspapers,
journals, magazines and textbooks with related information.

3.3 Target Population

The target population was the unlicensed business owners,
residents in the Kikuyu area and the governing body of the Kikuyu
Town Council. A certain level of literacy and knowledge was
required from the respondents. Therefore, in the study, middle-
aged and youthful individuals who are professionals and business
people were targeted. This enabled the researcher to be efficient
and accurate so as to come up with the most valid findings. A total
number of sixty subjects, who are residents in the area under
Kikuyu Town Council and fifty subjects who are business owners
32
 in Kikuyu area, were issued with questionnaires using the random
sampling method. Also the governing body of Kikuyu Town
Council was issued with one questionnaire. The researcher selected
Kikuyu Town Council because it was the most convenient and
required information could easily be accessed.

3.4 Sampling Design

Random sampling technique was used to sample out the study
population. Simple random sampling was advantageous in that it
has the least bias and that the results can be generalized across the
board.

3.5 Instruments of Data Collection

These included the development of questionnaires by the
researcher to the residents of Kikuyu area, to owners of small
businesses and to Kikuyu Town Council. It also included interview
guides with the governing body of the Kikuyu Town Council and
observations of customers of small businesses. The questionnaires
had open-ended and closed-ended questions. The open-ended
questions were intended to obtain personal views of respondents
where as the closed-ended questions were intended to obtain
specific data on the subject of study.

Questionnaire
The researcher chose the questionnaire as instruments because they
gave the respondents ample time to think over in a more relaxed
manner in answering the questions. It was a cheap means of
collecting data and provides unbiased data on the study. It was also
33
an important instrument because some of the information that was
private or in cases where respondents may have been shy to answer
questions, while using the questionnaire they were relaxed.

Interview Guides
This instrument was aimed at the governing body of Kikuyu Town
Council, which is concerned in making decisions, approving
expenditure and monitoring the performance of activities aimed at
providing the required services. Interview guides helped in
providing unbiased information and a chance to ask questions or
for clarification was available. The researcher was able to control
the order of questions that were presented to the subject. Interview
guides were advantageous since the researcher could note verbal
and non-verbal responses.

Observation
This instrument was used in observing customers of unlicensed
businesses as they carried out their purchasing normally. This
instrument was important because there was minimal distortion of
information by respondent.

34
3.6 Data Collection Procedure
The researcher designed three questionnaires. One was aimed at
the governing body of the Kikuyu Town Council, the other to
owners of small businesses and the other to the residents in Kikuyu
area. This enabled the researcher to obtain information on how the
Council and residents felt about unlicensed businesses and on the
other hand, know the views of owners of small businesses. The
researcher carried out personal interviews with members of the
governing body of Kikuyu Town Council since they were the
people who were well versed with the operations of the Council.
The researcher also observed customers as they purchased from
unlicensed business. The personal interviews combined with the
questionnaires formed the ingredients that provided crucial
information and data since they were important tools of gathering
data. The data collected from interviews and questionnaires was
summarized and recommendations given.

3.7 Data Analysis Procedure

After the required data was collected, it was analyzed through
editing, coding and tabulation methods and finally a summary of it
was given.

35
 CHAPTER FOUR
4.04 DATA ANALYSIS AND FINDINGS
n this chapter, findings are presented based on the questionnaires
administered and the interviews conducted to meet the objectives
of the study. Three types of questionnaires were used in gathering
information. A total of sixty (60) questionnaires were issued to
customers of businesses around Kikuyu area but only forty eight
(48) were duly filled and returned. Another type fifty (50)
questionnaires were distributed to small business traders but only
forty-two (42) were duly filled and returned. Lastly, one type of
questionnaire was presented to the Kikuyu Town Council, duly
filled and returned. The responses were properly checked to ensure
that they were accurately answered and the data well interpretated
by the respondents. The responses were systematically organized
in a manner that facilitated analysis. To permit quantitative
analysis, data was coded to specific categories and in a numerical
form. On collection of data from the customers, small business
traders and the Kikuyu Town Council, the researcher synthesized
and analyzed them through editing, coding and tabulation methods,
and drew import recommendations. Shown below is data analyzed
as for the responses from the questionnaires.

36
4.1.1 Customers Perception of Small Businesses Around Kikuyu
Area

a) Purchase From Small Business Operators

Forty-eight (48) questionnaires answered by customers of
businesses around Kikuyu area were analyzed. The table below
shows customers who purchase from small businesses and those
who do not purchase from small businesses.
Purchase from Small Business Operators No. of Customers

Purchase 45
Do not purchase 3
TOTAL 48
Table 4.0(a) Purchase from Small Business Operators (n=48)

The table indicates that out of forty-eight respondents, forty-five

respondents indicated they purchase from small businesses while
three indicated they do not purchase from small businesses. Further
analysis is shown in the pie chart below.

Purchase from small

businesses

Do not purchase
from sm all
businesses

45/48 x 360 = 337.5º

3/48 x 360 = 22.5º

b) Reasons For Purchase From Small Business Operators

37
 The table below shows the reasons why customers purchase from
small business operators.
Type of Reason No. of Out of
Customers 48Customers
They sell in small quantities 24 47
They are cheap 17 48
They are closer to the residents 38 48
To promote them 9 48
Business operators are well known and 16 48
trusted
They offer credit facilities 8 48
They offer after sale services and also 5 46
gifts
Have a variety of products 13 48
Time utility 25 48
Table 4.0(b) Reasons for Purchase from Small Business
Operators (n = 48)

From the table above, twenty four customers indicated they

purchase from small business operators because they sell in small
quantities, seventeen because they are cheap, thirty eight because
they are closer to the residents, nine indicated they wanted to
promote them, sixteen because they are well known and trusted,
eight because they offer credit facilities, five indicated because
they offer after sale services and gifts, thirteen indicated because
they have a variety of products, and twenty five indicated it was
because of time utility.
c) Satisfaction
Table 4.0(c) below shows the views of the customers regarding the
satisfaction they get from the products purchased from small
business operators.
38
 Satisfaction No. of Customers
Satisfaction achieved 40
Satisfaction not achieved 8
TOTAL 48
Table 4.0(c) satisfaction (n = 48)

From the table above forty customers of small businesses get

satisfaction from the products they purchase while eight customers
do not get satisfaction from the products they purchase. Further
analysis is showed on the pie chart below.

satisfaction
achieved
satisfaction
not achieved

40/48 x 360 = 300º

8/48 x 360 = 60º

d) Importance of Unlicensed Businesses

Table 4.0(d) shows the responses of the customers regarding their
feeling about unlicensed businesses in the society.

39
 Importance of Unlicensed No. of Customers
Businesses
Are important to the society 16
Are not important to the society 30
Not sure 2
TOTAL 48
Table 4.0(d) Importance of Unlicensed Businesses (n = 48)
From the analysis done sixteen customers felt that unlicensed
businesses are important to the society, thirty felt they are not
important to the society and two members of the society indicated
they were not sure whether they are important. Below is the
representation of the analysis on a pie chart.

Are important
to the society

Are not
im portant to
the society
Not sure

16/48 x 360 = 120º

30/48 x 360 = 225º
2/48 x 360 = 15º

(e) Prevention of Unlicensed Businesses

Table 4.0(e) shows the views of customers about the action that
should be taken to prevent unlicensed businesses from operating.

40
Type of Action No. of Out of 48
Customers Customers
Reduce corruption 26 48
Review tax rate 22 48
Apprehend law offenders 17 48
Improve human relationship 16 48
Conduct regular checks 19 48
Have well trained inspectors 14 48
Put stiff penalties to the operators 15 48
Table 4.0(e) Prevention of Unlicensed Businesses (n=48)
According to the analysis, the suggestions given by the customers
on the action that the Council should take were as follows:
Twenty six customers indicated that they should reduce corruption,
twenty two indicated that they should review tax rates, seventeen
indicated they should apprehend law offenders, sixteen indicated
they should improve human relationship, nineteen indicated they
should conduct regular checks, fourteen indicated they should have
well trained inspectors and fifteen indicated they should apply stiff
penalties to the operators.

4.1.2 Views of Small Business Traders

Below is the analysis of responses of small business traders
regarding various experiences in their operations.

41
 (a) Period of Operations
Table 4.01(f) shows the period in which small business traders
have been in operation.
Period of Operation No. of Small Business
Traders
Less than a month Nil
1 month to 3 months 6
3 months to 6 months 9
6 months to 12 months 12
Over a year 15
TOTAL 42
Table 4.01 (f) Period of Operation (n = 42)
From the above analysis fifteen business traders indicated they
had operated their businesses for over a year, twelve indicated they
had operated in the period between 6 months to 12 months, nine
indicated they had operated in the period between 3 months and 6
months, six indicated they had operated in the period between
1month and 3 months while none had operated for less than a
month according to the analysis.

(b) Rate of Customers Served

Table 4.01(g) shows the average number of customers served in a
day by small business traders.

Rate of Customers Served No. of Small Business Traders

Less than 50 17
More than 50 but less than 100 11

42
 More than 100 but less than 150 9
More than 150 5
TOTAL 42
Table 4.0 (g) Rate of Customers Served (n = 42)
According to the analysis done, small business traders who serve
less than 50 costumers in a day were seventeen, those who serve a
number of customers ranging between 50 and 100 were eleven,
those who serve a number of customers between 100 and 150 were
nine and those who serve more than 150 in a day were five.

(c) Major Problems Encountered

Table 4.0(h) shows the major problems encountered by small
business traders in the course of running their businesses.
Major Problems Encountered No. of Small Business
Traders
Financial constrains 23
High license fee 21
Poor inaccessible roads 17
Monopoly of business 11
Low profit margin 15
Unpaid debts by customers 9
Slow moving stock often leading to 12
expiry
Table 4.0(h) Major Problems Encountered (n = 42)
According to the responses received, twenty three small business
traders indicated that financial constraints were major problems,
twenty one indicated high license fee, seventeen indicated poor
inaccessible roads, eleven indicated monopoly of business, fifteen
indicated low profit margin, nine indicated unpaid debts by
43
 customers and twelve indicated slow moving stock leading to
expiry.
Further analysis is shown on a graphical representation below.

25

20
No. of small 15
business
traders 10
5

0
A B C D E F G
major problems encountered

A – financial constraints
B- high license fee
C - poor inaccessible roads
D – monopoly of business
E- low profit margin
F – unpaid debts
G – slow moving stock
(d) Services Received
Table 4.0(i) shows the responses received regarding the services
offered by Kikuyu Town Council to small business traders.

Rating of Services Received No. of Small Business Traders

Very satisfied 5
Satisfied 9
Dissatisfied 17

44
 Very dissatisfied 11
TOTAL 42
Table 4.0(i) Rating of Services Received
From the analysis of the responses received, eleven small business
traders indicated they were very dissatisfied with the services
offered by the Kikuyu Town Council, seventeen indicated they
were dissatisfied, nine indicated they were satisfied and five
indicated they were very satisfied. Below is the analysis
represented on a pie chart.

very satisfied

satisfied

dissatisfied

very
dissatisfied

2/30 X 360 = 42.9º

7/30 X 360 = 77.1º
12/30 X 360 = 145.7º
9/30 X 360 = 94.3º

4.1.3 Views Of Kikuyu Town Council

Below is the analysis received from Kikuyu Town Council. The

analysis was done according to the responses and summarized as
shown: -

45
• The Council regulates small businesses through
ensuring that all business people intending to start
small businesses apply to the Council for
consideration.
• The challenges encountered by the Council in
controlling small businesses are that owners of small
businesses hardly follow the laid down procedures
hence it becomes very hard to control them.
• Unlicensed businesses affect the operations of the
Council through; denial of revenue, lack of a
functional budget and wastage of physical, time and
human resources in pursuit of offenders.
• The Council does not have adequate personnel to deal
with unlicensed businesses and to deal with this
problem the Council is employing more personnel.
• Services offered to the residents of Kikuyu area
include: maintenance of roads, cleaning of trading
centres and markets, providing clean water and a
sewerage system.
• The council is of the view that the residents are
satisfied with the services they receive and they are
not satisfied with existence of small businesses.
• The Council conducts surveys to establish where
unlicensed businesses are after every three months.
• The residents do not volunteer information about
existence unlicensed businesses.

46
 • The main reasons leading to growth of unlicensed
businesses are; poverty, ignorance, lack of education
and lack of unemployment.
• Measures taken to deal with unlicensed businesses
include; operators are arrested and charged, their
wares impounded and they are fined.
• The Council experiences very much political
interference.
• The individuals intending to start businesses should
accept to pay for licenses, apply for requisitions of
their businesses and inform the Council of illegal
operators.
Further analysis from the three types of questionnaires indicated
the following comments of the parties involved: -
1. Some small businesses create problems because
they are not regularly monitored by the Council
therefore not maintaining the required standards
and are not well planned and located in the
right places.
2. Poverty is the main reason leading to the high
growth rate of unlicensed businesses within the
society.
3. Influential people should not be allowed to
bend the law to suit their needs through taking
advantage of their positions.
4. Some Council employees take advantage of
those who are not aware of the license charges
and charge them higher than required.
47
 5. The Council should sometimes offer incentives
like tax holidays to enable businesses perform
better, as a way of supporting them.
6. The Council can be assisted with outside
financing especially with equipments and donor
funds projects to enable it deal with unlicensed
businesses.

CHAPTER FIVE

5.0 SUMMARY AND CONCLUSIONS

5.1 Findings of the Study
The purpose of this study was to establish how unlicensed
businesses come into existence and to find out how the members of
the society feel about the existence. The study was guided by the
research questions. A combination of questionnaires, observations
48
and personal interviews were used so as to be accurate and so as to
get the most valid findings. The following is a summary of the
findings from the society who are the customers of small
businesses: -
• Most of the customers indicted they purchase from
small businesses operators the various items they
required everyday.
• Most customers indicated that small businesses are
important to the society in various ways.
• Most of the customers indicated that they get
satisfaction from the products they purchase from
small business operators.
• Majority of the customers indicated that unlicensed
businesses are not important to the society.
• Most customers indicated that some of the small
businesses were in a poor state.
• Most customers indicated that some of the small
businesses create problems in the society through
selling illegal items and expired products.
• Most customers indicated that no action has been
taken by the Council to improve the services delivered
by the small businesses.
• Most customers indicated that the council should take
action to prevent unlicensed businesses from
operating.
Summary of the findings from the small business traders within the
Kikuyu area are as follows: -

49
 • Majority of the small business traders indicated they had
operated their businesses for a period of over a year.
• Most of the small business traders indicated they liked
and enjoyed their businesses despite how their status
• A few small business traders indicated they did not like
their businesses and they gave the following reasons that
made them dislike their businesses: -
1. They work a lot but earn very little profit,
2. Their jobs are prone to various risks,
3. Some of their jobs are difficult,
4. Some jobs bring stress,
5. Some of their jobs are seasonal.
• Most of the small business traders indicated they serve less
than fifty customers in a day.
• Most of the small business traders indicated that they were
dissatisfied with the services offered by the Council.

• Most of small business traders indicated that the Council

rendered poor services to them.
• Majority of small business traders indicated that the major
problem they encountered in running of their businesses was
financial constrains other problems include: -
1. High license fee,
2. Poor inaccessible roads,
3. Monopoly of business,
50
 4. Low profit margin,
5. Unpaid debts by customers,
6. Slow moving stock often leading to expiry,
7. Operating in very unhygienic environment.

5.2 Recommendations

• The Council should apply stiff measures on unlicensed

businesses to ensure that they do not have room for
existence and also this will enable small business traders to
compete fairly.
• The Council should de-ploy all the non-performing and
undedicated officers in order to win confidence of the local
business community and also to avoid loss of Council’s
revenue to individuals.
• The Council should conduct regular check to see to it that all
businesses operating are licensed, are not selling illegal
products and are observing high standards of hygiene.

• In an effort to improve their efficiency, they should try to

license businesses according to size and the profit margin
that will make it affordable even for small business
operators to acquire licenses.
• The Councils should render their services effectively
through supervision of workers and use of the proper
equipments like brooms, buckets, and detergents.

51
• The Council should improve human relationship with
members of the society, which will help in ensuring that
members of the society are volunteering important
information to the Council Authorities.
• The management of the Council should ensure that it has a
well-trained staff at all levels of operations who are able to
handle and solve issues in the right way.
• The Council should relocate all the business traders who are
operating along the road reserves and offer an alternative
area where they will not be a threat to security and will be
possible to monitor and license them efficiency.
• Hawking should be prohibited and alternative location to
conduct business offered in an orderly and suitable
arrangement. The places can have a fence round it and
hawkers can pay on entry.
• The management of the Council should simplify the
procedures and processes involved in acquiring a license so
as to make it easier for businessmen including renewal
invitation by posting notices to traders.

• The Council should create awareness of unlicensed

businesses to members of the society and carry out a
campaign against them, which will facilitate in eliminating
them.
• Since small businesses are important to the society, the
council should support them because this will help in
discouraging unlicensed businesses. The can be organized
52
 and educated to form self-help groups under community
Development Officers (C.D.O)
• The Council should make sure it has enough qualified
personnel to carry out the duties that it should undertake.
This will help avoid overworking certain employees leading
to demotivation and neglecting of some areas.
• In cases where the Council experiences political
interference, they should notify higher authority to make
sure that the issue is solved as soon as possible to promote
effectiveness and efficiency.
• The Council should improve and maintain the road network
to improve accessibility of the regions. This will help very
much especially in growth of various areas and linking of
road transport to different parts.
• The Council should aim at creating trading areas so as to
enable it eliminate businesses located along road reserves
and on the other hand streamline collection of revenue.
• The Council should delocalise some of their offices and
distribute them evenly to avoid making some business
owners travel long distances to acquire a license. They can
operate a licensing kiosk in every shopping centre.
• Lastly, the Council should embrace the use of new
technology in handling documents and relevant data in
communication and in carrying out its duties for efficiency.

5.3 Recommendations For Further Research

53
The research recommends that the Kikuyu Town Council should form a
research team to carry out the following: -
• The importance of educating business operators,
• The role of close interaction between the Council and the society,
• Deliver of services by the Council to the operators,
• The Council’s role in customer satisfaction,
• The role of the society in elimination of unlicensed businesses.
In conclusion all factors put into consideration; the research shows that
the existence of unlicensed businesses has a negative effect on efficiency
of the Council. The Council Authority have been trying to eliminate them
but for it to be possible, it is important to consider the recommendations
given in this research, apply effective measures and put in place licensing
mechanisms to avoid negative impact reflected by the current procedures
which result to huge losses of revenue collection.

BIBLIOGRAPHY
1. Aina S. : (1982) International Review of
Administrative Science
XLVIII, 70-6.
2. Benhardt Kenneth L. : (1978) cases in Marketing
Management,
54

3. Blunt P. and Popoola O.
4. Caiden, G.E and Caiden M.S
5. Cole G.A.
6. Daily Nation, May 6 2003,
7.Hill C.W.L and Jones R.G.
8. Koontz O’ P. and Weihrich
9. Samuelson P.A. and Nordhaus:(1995) Economics,Mc Graw-Hill
10. Stewart and McGoldrick
11. Watkins R.I.
IRWIN, Boston, USA.
: (1985)Personnel Management in
Africa,Longman Inc, New
York.
: (1977) Public Administration
Review 37, 301-9.
:(1999) Management EALBS,
London.
:Mayor welcomes Delegates to the
UN- HABITAT Governing
Council, Nation media Group
Limited, Nairobi.
:(2001) Strategic Management
Theory, Houghton Mifflin Co,
Boston N.Y 5th E.
: (1984) Management,Mc Graw-
Hill, New York.
N.Y, USA 15th E.
:(1996) Human Resource
Development, Pitman, London,
Great Britain.
:(1997) Retailing and Financial
Services, Institute of Financial
Services, Kent, U.K.
55
 APPENDIX I

QUESTIONNAIRE
ON
EVALUATION OF THE PERCEPTION OF CUSTOMERS ON
SMALL BUSINESSES AROUND THE KIKUYU AREA
1. Do you purchase items from small business operators?
(Tick One)
56
 Yes

No
2. Why do you buy from small business operators?
i.
ii.
iii.
iv.
v.
3. Do their products satisfy your needs like other products?
Yes

No
4. What is your feeling about small business in the society?

5. (a). Do some of the small businesses create problems within Kikuyu

Town?
(Tick one) Yes
No

(b). If yes, give examples of the problem?

6. Do you think unlicensed businesses are important to the society?

( Tick One)
Yes
No
7. In your view what action should be taken by the Kikuyu Town Council
to improve their services?
57
8. What do you think are the major challenges that make people operate
unlicensed businesses?
i)
ii)
iii)
iv)
(v)
9. What action should the Kikuyu Town Council take to prevent
unlicensed business from operating?
i)
ii)
iii)
iv)
(v)

APPENDIX II
QUESTIONNAIRE
ON
EVALUATION OF THE VIEWS OF SMALL BUSINESS
TRADERS WITHIN KIKUYU AREA

1. What kind of business do you operate?

58
2. For how long have you operated this business?

(Tick One) Less than a year

1 month to 3 months
3 months to 6 months
6 months to 1 year
Over a year
3. (a). Do you like this business?
(Tick One) Yes
No
(b). If no, what are some of the reasons that makes you hate your
business?

4.About how many customers do you serve in a day?

(Tick One) Less than 50
More than 50 but less than 100
More than 100 but less than 150
More than 150
5. What are the major problems you encounter in running of your
business?

6. What service are you given by the Kikuyu Town Council?

i
ii
iii
iv

59
v
vi
7. What problems do you encounter in applying for license?
i
ii
iii
iv
v
vi
8. How do you feel from service you get from the Council?
(Tick One) Very satisfied
Satisfied
Dissatisfied
Very dissatisfied

APPENDIX III
QUESTIONNAIRE
ON
EVALUATION OF THE VIEWS OF KIKUYU TOWN COUNCIL.
1. What are the departments in Kikuyu Town Council?
i)
ii)
iii)
iv)
60
 (v)

2.How do you regulate small businesses?

3. What are the challenges encountered in controlling small businesses?

4 (a) Do you encounter the challenges of unlicensed businesses?

(Tick One) Yes
No
5. (a) Do you have adequate personnel to deal with unlicensed
businesses?
(Tick One) Yes
No
(b) If No, what measures are you taking to overcome this problem?

6.What services do you offer to the residents of Kikuyu area?

i
ii
iii
iv
v
vi
7. What do you think is their level of satisfaction compared to the
services they receive?
(Tick One) Very Satisfied
Satisfied
Dissatisfied
Very Dissatisfied
61
8. Are the residents satisfied with the existence of small businesses?
(Tick One) Yes
No
9. What assistance do you need to deal with unlicensed businesses?

10. (a) Do you conduct survey to establish where unlicensed businesses

are? (Tick One) Yes
No
(b) If Yes, how often?
Tick One After 3 months
After 6 months
After 12 months
After over a year
11. Do you residents volunteer information about existence of unlicensed
businesses?
(Tick One) Yes
No
12. From your experience, what are the main reasons that lead to growth
of unlicensed businesses?
i
ii
iii
iv
v
vi
13. What are the measures you have taken to deal with unlicensed
businesses?
i
62
ii
iii
iv
v
vi
14. (a) Do you experience political interference in your duties?
(Tick One) Yes
No
(b) If yes, how can you place extent of the interference?
(Tick One) Very Much
Much
Little
Very Little
15. What do you think the residents should do to enable you deal with the
problem of unlicensed businesses?
i
ii
iii
iv
APPENDIX IV

TIME PLAN – YEAR 2003.

ACTIVITY PERIOD
63
Preparation and submission of the proposal March – May
Questionnaire development and data May
collection
Data analysis May - June
Report writing and typing June – July
Printing, binding and project submission July August

APPENDIX V

BUDGET PLAN

PROJECT PROPOSAL
ITEM AMOUNT (KSHS)
Stationery 900
Photocopying, typing & binding 2,500
Overhead expenses 600
Transport 1,200
64
TOTAL 5,200

MAIN PROJECT
ITEM AMOUNT (KSHS)
Stationery 2,400
Photocopying typing printing 4,500
binding
Data collection 1,300
Overhead expenses 1,100
Transport 1,700
TOTAL 11,000

65