Women Micro and Small Enterprises as a Platform for Human Development in Kenya: A Case of Kisumu City

Litondo, kato, Ntale. "Women Micro and Small Enterprises as a Platform for Human Development in Kenya: A Case of Kisumu City." Strategic Management Quarterly. 2015;vol.3( No. 4):23-37.


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.

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