Factors influencing performance of micro, small and medium entreprises (msme) owned by women in Muthurwa market in Nairobi county, Kenya.

Abstract

Women owned enterprises are making a significant contribution to the Kenyan economy, accounting for 20% of Kenya‟s GDP. Of the 462,000 jobs created annually since 2000 in Kenya, 445,000 jobs have emanated from the informal sector, where 85% of women‟s businesses are found. (Voices of Women Entrepreneurs, Kenya).The purpose of this study was to find out the factors that influence the performance of micro, small and medium enterprises owned by women in Muthurwa Market in Nairobi county Kenya. The objectives of study was to establish how capital, level of education, domestic commitment and competition influenced the performance of MSME owned by women in Muthurwa market, Nairobi county Kenya The study used descriptive survey to collect primary data. The main tool for data collection was the questionnaire which was administered to women owned MSME in Muthurwa market. Micro Small and Medium Enterprises (MSMEs) play an important economic role in almost every country. In Kenya, women owned businesses account for over 48% of all SMEs (ILO, 2008). Stevenson and St-Onge (2005) contends that there are three profiles of women entrepreneurs operating SMEs in Kenya namely; Jua Kali micro-enterprises, very small micro enterprises and small scale enterprises. These are differentiated by their demographic profiles, extent of previous business experience, needs, access to resources and growth orientation. The bulk of women entrepreneurs in Kenya operate enterprises associated with traditional women‟s roles such as, hairstyling, restaurants, hotels, retail and wholesale outlets (ILO, 2008). This adds up to a significant contribution by women entrepreneurs to job creation, income generation, and economic growth. Many business women cannot access commercial credit, an essential driver of business success. As a result, women-owned businesses are disproportionately micro, small or medium enterprises that may not mature to their full potential. This represents a missed opportunity for financial institutions and has negative implications for the private sector as a whole. In Kenya. Institutional support for businesses owned by women is limited to non-profits that provide networking and funding opportunities However, these women face significant cultural barriers such as patriarchy and deficiencies in enterprise skills.