Factors Influencing Performance Of Women Entrepreneurs In Micro And Small Enterprises: A Case Of Accelerated Value Chain Development Project In Isiolo County, Kenya

Abstract

The changing socio-economic environment in the ASAL has had an impact on gender roles. Women in Isiolo county are increasingly taking up more roles that used to be reserved for men e.g men’s role as household head and provider, as men migrate to take up paid work in urban areas. Men working away from home do not adequately provide for their families. Which has led to these women starting MSEs for the upkeep of their families. The enterprises are not performing optimally because of social-cultural and religious issues that hinder women from participating in certain types of businesses. Accelerated Value Chain Development (AVCD) Project in Kenya is funded by USAID under Feed the Future initiative to impart business development skills to women in the ASAL county of Isiolo. This study was guided by four objectives; to determine how sociocultural factors influence the performance of women entrepreneurs in the accelerated value chain development project, to assess the extent to which entrepreneurial skills influence the performance of women entrepreneurs in the accelerated value chain development project, to establish how business development services (BDS) offered by the accelerated value chain development project influence the performance of women entrepreneurs and to determine how legal and regulatory factors influence the performance of women entrepreneurs in the accelerated value chain development project. The study was based on theory of performance and sociological theory. The approach of this study was both quantitative and qualitative and the design was descriptive survey. The target population was 995 women entrepreneurs who had been trained by the AVCD project. The survey consisted of standard demographic questions, statements on business information and statements on the four components on performance of women entrepreneurs in the accelerated value chain development project. A pilot test was done, and the reliability test score was 0.84, indicating very high reliability. The data was collected using a questionnaire and checked for completeness. The data was then analyzed using SPSS version 23. The researcher used simple descriptive statistics and presented data in frequency distribution tables and percentages. The study concluded that business development services being offered by the AVCD project had the most influence on performance of women entrepreneurs with an aggregate mean of 3.60. Both social cultural factors and entrepreneurial skills did not play a significant role on the influence of performance of women entrepreneurs with an aggregate mean of 3.30. Legal and regulatory factors were the least to influence performance of women entrepreneurs with an aggregate mean of 1.50. In conclusion, the AVCD project has made a big difference in the women enterprises and it seems to be on the right track of meeting its objective of empowering women through imparting business development skills. The study recommends that; the county government encourage investments of financial institutions that are shariah compliant to encourage borrowing by the enterprises. Secondly, the government should tailor the women and youth enterprise funds to include a component of shariah compliance. Thirdly, the county government should introduce mentorship programs for the women. Fourthly, women entrepreneurs should be encouraged to purchase assets which can be used as collateral. Finally, the imparting of business development skills should be done in partnership with other relevant institutions to ensure sustainability