Industrial Clusters and Micro and Small Enterprises in Africa: From Survival to Growth

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Building Managerial Human Capital in Africa’s Survival Industrial Clusters

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Table 7.2 Challenges among Micro and Small Enterprises in Kariobangi Light Industries Products produced by interviewed enterprises Baking ovens, band saws, popcorn machines, paint mixer ovens, and a wide range of other products Spare parts for automobiles, gas welding rods, caliper clips, nuts, and many other metal items Stainless steel catering equipment, fuel-efficient stoves and pots, and so forth Metal doors, door frames, and window frames

Casting of components for all categories of industry in ferrous and nonferrous metals Grinding mills, office furniture, steel doors, billboards, and so forth Molds for casting, dies for sheet metal blanking and forming, general services General machine shop service, provision of spare parts, building of feed mills, and so forth Nonferrous metal casting using permanent molds; products include grills, chippers, gratings, frying pans Caliper clips for automobiles, gas welding electrodes, nuts, and so forth Band saws and posh mills (for grinding grain into flour)

Wholesale door hinges

Problems Low growth of customer base; little effort put into selling products; reduction in sales volume; poorquality management; lack of tools Limited space for operation; poor-quality raw materials; inability to meet demand due to limited space and qualified personnel Lack of suitable equipment for work; stiff competition from former employees Unapproved location, situated on space zoned for a road; inadequate workspace; difficulty working during rainy season; inadequate tools and equipment; low sales Inadequate workspace; poor lighting; lack of trust in capability of company by potential customers; perception that all products from Kariobangi are inferior High cost of electricity; poor housekeeping; poor lighting Lack of tools and equipment; poor housekeeping; poor lighting; lack of appropriate raw materials for production Poor power supply and high cost of electricity

Poor furnace design, which wastes fuel; inadequate and unsuitable space for foundry work; poor housekeeping; limited resources to meet high demand Poor lighting; poor housekeeping; inadequate tools and equipment for work; inadequate workshop space; lack of educational background to register as an engineering firm Poor record keeping; inability to distinguish profit and cash inflow; poor cash management; frequent overdrawing of money from the business; inability to distinguish between business and personal funds; enterprise not registered despite being in operation for more than four years Inability to calculate costs and prices

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