Effects of Informal Cross Border Trade On Growth of Women Entrepreneurial Businesses at the Busia Border

Abstract

Informal Cross-Border Trade (ICBT) constitutes a major form of informal activity in most African countries. This study sought to assess the implications of ICBT on women entrepreneurs and develop policy advocacy recommendations on what needs to be done to enable traders to have beneficial co-existence to promote the desired goals of the regional development and integration of East Africa Community economies. This type of trade is estimated to provide up to 70% of employment in sub-Saharan Africa and brings significant socio-economic benefits for those engaged in such activity. Many governments tend to disapprove of informal activity as it results in revenue losses, and the difficulty of regulating such activities can often lead to negative effects on the overall economic growth of a country. This study thus sought to provide answers to the following research questions: what are the characteristics of informal cross-border trade at Busia Border? What are the challenges affecting women in ICBT at Busia Border? And how does cross-border trade affect EAC regional trade integration? The study focused on the women informal cross border traders who operated on the Busia border of Kenya and Uganda. The researcher adopted descriptive statistics. All traders in Busia were inclusive in the target study. Stratified random sampling was done to achieve a desirable sample size. The study used primary data that was obtained by use of questionnaires. The study used a response rate of 88% to give 279 respondents. The demographic data was tabulated using mean and standard deviation. Regression analysis was computed to determine the effect of informal cross border trade on growth of women entrepreneurial businesses at Busia border. The study indicated that cross border trade was their main source of respondents’ income. Majority of the respondent indicated that high rates of retrenchment in Urban centers caused more people to be involved in ICBT. The respondents indicated that most traders were women. The respondents agreed with a great extent that women suffered gender discrimination in the trade. Government policies were not effective to actual process. Women were accountable for most of the workers in ICBT. Women relied on informal trade to sustain their families. Majority of women managed small-scale trade to survive. Respondents agreed that business women were the most vulnerable to unfair trade. ICBT had improved the living standards of the stakeholders. Informal trade had boosted socio-economic activities in Busia. Respondents agreed there was an increase of graduates joining trade. Respondents indicated that attracting a vast variety of people in the trade have sophisticated trade. Respondents agreed that GDP emerging from trade was grossly under-estimated. The study concluded that unfair trade should be eradicated to eliminate poverty in households. Government policies should be effective in formulating its strategic policies. Associating ministries should have proper coordination for effective implementation off policies. Women should not entirely relay on informal trade to sustain their families instead they should different source of income. There should be enough credit facilities. Proper information available on market opportunities for competitive market edge. Bureaucratic regulations on imports and exports should be efficient. ICBT should have no difference from the pre-colonial times’ barter trade. The advancement off trade should be high. Ministries should implement low tax and limited trade regulations. There should be consist increase in prices. The number of employees in traders’ businesses should increase over the years. The market share of traders’ businesses should grow over the years. Traders should make more purchases order as time passes over. The study recommends that cross border trader should not be the main source of income. High rates of retrenchment in urban centers should cause people to be involved in ICBT. ICBT should be attractive due to its dynamic nature to accommodate all possible interested parties. Women should manage small scale trade to survive. Market place should be sanitized. Women should not be vulnerable to unfair trade. There should be low high tax and limited trade regulations. Negative societal perceptions should not discourage women from working effectively and lack of capital should not hinder women from engaging in entrepreneurial businesses. Bureaucratic procedures should not be time consuming. Informal trade boosted social economic activities in Busia. ICBT has created employments to help sustain families. The GDP emerging from trade should be grossly estimated.