This article examines entrepreneurship and small business manufacturer's characteristics in Kenya. Much literature on small business development in developing world countries assume informal sector activities as homogeneous in their characteristics (Morris and Pitt, 1995; Bewayo, 1995; Ekpenyong and Nyong, 1992). Thereby policy recommendations are blanket and not of great assistance. The article investigates a sample of 320 manufacturers, from three industries. The objectives are to evaluate characteristics of small-scale manufacturers that make it difficult to be profitable and the problems faced which contribute to poor performanc