Determinants of Sustainability for Women Owned Micro-Enterprises in the County Of Vihiga in Western Kenya

Abstract

The purpose of the research was to explore the determinants of sustainability of women-owned microenterprises (WOEs) in the County of Vihiga in Western Kenya. Study responses focused on Necessity Initiatives Solutions Enterprises’ (NISE)’ members - a locally established microfinance/NGO, as a case to unravel the challenges faced by women in starting, running and growing their micro businesses to sustainability. The following research questions sought to achieve: to what extent is Competition a determinant of sustainability of women-owned microenterprises?; to what extent is Capital Accessibility a determinant of sustainability of women-owned microenterprises?; to what extent does women’s Domestic Attachment a determinant of sustainability of women-owned microenterprises?; to what extent is Information Technology (IT) a determinant of sustainability of women-owned microenterprises? The research engaged a descriptive approach on the influence of competition, capital accessibility, domestic attachment and information technology on microenterprise sustainability. The target population was derived from women registered members of NISE composed of 300 respondents. The study applied probability sampling technique to generate a sample frame, in this case, a membership list which allowed the coming up with a sample size, and the study settling on 168 respondents. Primary data was collected directly from respondents using structured questionnaires and analysed using descriptive statistics and inferential statistics on SPSS 24. Multiple regression analysis was used to test for normality, reliability, validity through correlation, analysis of variance, and factor analysis to determine the relationship of dependent and independent variables. Presentation of the study results were by the use of tables, bar graphs and pie charts. Study analysis found Competition to have significant relationship with microenterprise sustainability. Competition had a negative and significant coefficient value (β=-0.192, T-value =-2.743, p<0.05). The negative relationship means, if competition decreases by 1, microenterprise sustainability will decrease by 0.192. Capital accessibility had a positive and significant coefficient value (β=0.572, T-value =6.535, p<0.05). The positive relationship means, if Capital Accessibility increases by 1, microenterprise sustainability will increase by 0.572. Similarly, Domestic Attachment has a negative and significant relationship coefficient value (β=-0.168, T-value =-2.100, p<0.05). The negative relationship means that if domestic attachment reduces by 1, microenterprise sustainability decreases by-0.168. Lastly, Information Technology has positive and significant relationship coefficient value (β=0.211, T-value =2.185, p<0.05). The positive relationship meant if, information technology increases by 1, microenterprise sustainability will increase by 0.211. Therefore variance in endogenous variable is explained by the exogenous variables with path coefficients of -0.192, 0.572, -0.168 and 0.211 respectively. The perceived quality R2 value indicated 43.4% which can account for the variance in the Microenterprise sustainability with competition and domestic attachment influenced negatively, while capital accessibility and IT influenced positively. The study concluded firstly that competitive advantage be the focus by women entrepreneurs for their micro businesses to survive to sustainability. Creativity and innovativeness is actively encouraged, together with differentiation, uniqueness of products and the desire of the individual entrepreneur to be different from other sellers in the marketplace. Secondly, capital accessibility is the biggest challenge and a stumbling block due to lack of collateral. Relatives, friends and spouses can improve the accessibility by contributing funds for boosting, expanding and managing the business. Other forms of funding/lending like Women Enterprise Fund and Youth Fund be fully explored and utilized. Thirdly, creating a balance between domestic responsibility and running a business is encouraged with the support of relatives and friends. Fourthly, rural women should be facilitated to access IT, acquire mobile phones/banking and networking. In future, further research should be carried out by scholars on the same or similar topic that evaluates specific Kenyan communities, counties or regions on microenterprises’ sustainability of women owned micro-businesses. Furthermore, additional studies on the specific role(s) of the mobile phone and mobile money transfer platform like Safaricom M-Pesa or any others that enhance success of micro-enterprises be investigated. Challenges and impediments facing women entrepreneurs and any other factors that influence the sustainability of women owned micro businesses are minimised. The study also can be a source to guide in the development of new researches on related topics, and on the emerging challenges and viewed opportunities.