Determinants Of Performance For Micro And Small Enterprises In Kenya

Abstract

Micro and Small Medium Enterprises are one of the drivers of social economic developments in developed and developing countries of the world. Despite the effort of governments formulating and implementing policies intended to enhance entrepreneurship, a number of challenges are still experienced by entrepreneurs ranging from; finance, production, marketing, and human resource management. Women entrepreneurs have been identified as a major force for innovation and job creation. This study therefore sought to investigate determinants of performance for micro and small enterprises in Kenya: a case of women enterprises in Meru County. The purpose of this study was to establish determinants of performance for micro and small enterprises in Kenya. The specific objectives were to determine the influence of financial accessibility, level of education and gender issues on performance of women enterprises in Meru County. In addition, the study sought to establish the challenges experienced by women entrepreneurs in Meru County. The findings of this study would benefit various stakeholders which would include; women entrepreneurs, Ministry of Devolution and Planning, Ministry of Industrializations and Enterprise Development, investors and scholars in formulating various policies. The study adopted descriptive research design to establish the problem under investigation. The target population was 220 women enterprises registered by Meru County Council. The representative sample was selected using purposive sampling technique. 110 women enterprise in Meru County was the sample size of this study. The Women enterprises included M-pesa shops. The study used questionnaires as the main data collection tool after a pilot study. Quantitative data was analyzed using multiple regression method while qualitative data was analyzed using content analysis method where key themes were selected from published content to make arguments concerning the problem under investigation. The analyzed data was presented using tables. The study established that there was a significant positive relationship between the financial accessibility, level of education and gender issues on performance of women enterprises in Meru County. The study concluded that unless the Government intervenes in the entrepreneurship sector, economic growth will be an uphill task. The Government should formulate policies to regulate interest rates, train and invest in infrastructure, technology and communication to boost the economy. The study recommended that the Government should be on the forefront to encourage entrepreneurship in Kenya by introducing entrepreneurship skills in the school curriculum thus social economic developments.