Women micro and small enterprises as a platform for human development in Kenya: a case of Kisumu city

Abstract

Micro and Small Enterprises (MSEs) are contributing a lot to the Kenyan national development in general and human development in particular. However, it was observed that many of the women MSEs in the informal sector of Kisumu city are performing poorly. Nevertheless, limited use of strategic management practices has been cited as one of the main causes of poor business performance. This study therefore investigated the best strategic management practices of women MSEs and their effect on human development. Best strategic management practices investigated were: closing time, locus of planning, planning horizon, change in government regulations, and possession of a business plan, stock, change in technology, creditors, sales, debtors, competitors, profits and opening time. A cross sectional survey design was used and systematic random sampling employed to collect data from the women MSEs in Kisumu city. Descriptive statistics, correlation analysis and linear probability model were used to analyze the collected data. The results revealed that most of the women in Kisumu city are literate and have at least attained primary level of education. The study established that strategic management practices of women MSEs have a significant effect on human development. However, few women MSEs apply best strategic management practices. The study also shows that the women who keep records of their business transactions and involve their employees in their business planning process have high chances of improving their livelihoods by buying land, building permanent houses, getting business premises, and joining Savings and Credit Co-operative Societies (SACCOs). The study recommends that the Kisumu County government, church leaders, civil society groups and NonGovernmental Organizations should organize workshops and seminars to sensitize women entrepreneurs on the best strategic management practices. Microfinance institutions should be prevailed over to give loans at reasonable interest rates to prospective women entrepreneurs.