Effect of Performance of Microenterprises Supported by 410 Bridge International on Well-being of Households in Makueni County, Kenya

Abstract

In most of the developing countries, micro-enterprises are depended on as a key sub-sector which creates employment and boosts economic growth, especially in poverty striken areas such as Makueni County in Kenya. 410 Bridge International started its support of development work in the area with a view to reducing poverty through micro-enterprises and other related development projects. This study sought to establish the effectiveness of the agency’s efforts by examining performance of micro-enterprises it supported and their effect on the well-being of households. Factors influencing performance of the micro-enterprises were also examined and included household socio-economic characteristics, level of support of their micro-enterprises by 410 Bridge International, level of support by their self-help groups and characteristics of the businesses. Literature review covered the concerns of study: performance of microenterprises, agency and SHG support and characteristics of businesses and households. Three theoretical models were used to support the study which were: Grameen Bank, SHG and development perspective models. Descriptive survey design was adopted in the study. Makueni County which is one of the areas where 410 Bridge International operated was chosen as the site of study. Within the county, Kiima Kiu ward was chosen as the sub-site for data collection. Seventy five (75) households running micro-enterprises supported by 410 Bridge International were sampled out of a population of 150 in the ward. Out of these 75, 63 were reached and interviewed. A few of staff of the agency were sampled as key informants. Both Quantitative and qualitative data were collected using questionnaires and interview guides. Quantitative details is analyzed using the Social Sciences Statistical Kit (SPSS). The study found that the bulk of respondents who happened to be the primary beneficiaries of the agency were women, most had primary education and were married with dependents. Regarding level of support by 410 Bridge International, bookkeeping and budget making were the major benefits they received from the training offered by the agency. No financial support was given to the respondents. On the level of support of the respondents by self-help groups, low interest loans and savings were the major benefits the respondents received. The study recommends that both 410 and other agencies should support the micro-enterprises even with finances other than training alone. Self-help groups supporting micro-enterprises also need more financial back up from 410 Bridge, national and county governments and other agencies. They also require legal support to enhance effectiveness. There is also need for diversification of businesses operated by SMEs and to strengthen benchmarking to strengthen their operations.