Trusted since 2008
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

List five challenges facing small and medium sized enterprises (SMEs) in your country.

List five challenges facing small and medium sized enterprises (SMEs) in your country.

Answers

Martin
Challenges of SMEs may include;

The most commonly faced external factors by SMEs may include;

- Economic fluctuations such as boom, recession, depression and recovery can find a business at any stage of its progress.
-Fluctuating interest rates which grossly affect SMEs in the export import business.
- Interruption in supplies caused by war, or piracy in the sea for business which import their commodities.
- Government regulations and restrictions which sometimes are costly to SMEs to comply with such as taxation policies.
-Natural catastrophes and disasters such as fire and floods which may hinder operations and break down the supply chain and major routes
Personal factors may also affect entrepreneurs engaged in the SMEs some of which may include;
- Financial risks involved such loss of all personal savings which may discourage entrepreneurs.
- Career risks such as giving up on employment to pick up business.
- Lack of skills and experience in a given business area.
- Mismanagement of business which leads to failure of many SMEs in the country.
- Poor business ethics such as unfair business ethics in order to make quick gains may be a contributing factor to failure of many SMEs
marto answered the question on February 4, 2019 at 08:34

Answer Attachments

Next: Explain four principles of an effective office system.

Previous:  Explain the importance of a business plan to an entrepreneur.

View more CPA Entrepreneurship and Communication Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions