Internal Factors Affecting the Performance of Businesses of Retirees in Kakamega Municipality
Simon Mamadi Shiamwama, Joshua Amakanya Ombayo, Mildred Shibona Mukolwe

Venturing into business is thought to play an important role in one’s life since it is an alternative form of self employment. Retirees venture into business as a source of extra income and also for keeping themselves busy in retirement. As a result of the on-going restructuring of public corporations in Kenya and normal retirement, retirees from these institutions have ventured into business. However, in spite of efforts from various stakeholders to enhance success of the retirees’ businesses, most of them have been performing poorly. According to the Retirement Benefits Authority (RBA) most businesses started by retirees fail within the first three years. The main objective of the study was to determine internal factors affecting the performance of business projects of retirees. The population of this study comprised of the retirees from the finance and communication sector of the larger public corporations operating in Kakamega municipality for a five year period ranging from 2007 to 2011.The study used a sample size of 52 retirees, who were picked from a population of 130 through stratified sampling technique. The study used a descriptive survey of the retirees and used both primary and secondary data. The data collected was analyzed using descriptive statistics and presented in form of tables and frequency distributions. This study revealed that the major factors affecting performance of retirees’ businesses include financial stability, physical and mental strength, entrepreneurial skills and family base which accounted for significant failure of businesses of retirees of finance and communication sector of the larger public corporations in Kakamega municipality. It was also revealed that many retirees lacked proper human relations skills to motivate and retain internal customers as well as maintain consistently satisfied customers. The study recommended that retirees in business should endeavour to attend trainings/seminars to improve their business and financial management skills. Further, the study recommended the enactment of a compulsory pre-retirement training on financial and business management for employees with at least five years to retirement. The researcher suggested that a similar study be done focusing on external factors affecting business performance and also focus on retirees in the private sector.

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