Question

Highlight any five reasons why there are so many small-scale business firms in Kenya despite the economies of scale enjoyed by large firms

Answer 1

1. Small-scale firms require small amount of capital to start
2. They are simple and easy to manage
3. some services can only be provide in small scale
4. Some businesses/professions have restrictions
5. Government policy may influence a firm to remain small
6. Small markets are better served by small firms

Answer 2

It requires little capital to start.
It is easy to manage.
It is easy to fast to make decision.