Effect of Government Interventions on the Growth of Entrepreneurial Women Micro and Small Enterprises in Trans Nzoia County, Kenya

Abstract

The objective of this study was to investigate “Effect of Government Interventions on the Growth of Entrepreneurial Women Micro and Small Enterprises in Trans-Nzoia County, Kenya”. The Study sought to establish the effect of Government interventions provided to Women owned MSEs through Women Enterprise Fund on growth and whether there was any significant positive relationship between the interventions provided and growth. The study utilised a mixed research design composed of qualitative and quantitative methods. The target population was 700 women owned group MSEs. Questionnaires, interview schedules and observation methods were used to collect data a sample of 254 women MSE owner managers in Trans-Nzoia County who had received Government interventions of entrepreneurial training, entrepreneurial credit, Entrepreneurial Orientation and government policy and regulations between 2009 and 2014. Growth was measured in terms of change in sales revenue, profit, number of employees, monthly employee earning and capital employed before and after Government interventions. Data was collected between 1st January and 28th February, 2016. The data was analysed using descriptive and inferential statistics of frequency distribution, mean, standard deviation, paired t tests, correlation and multiple regression analyses. Hypotheses were tested and inferences made, from which generalizations and conclusions were drawn. The independent variables of business experience, entrepreneurial training, entrepreneurial credit and Entrepreneurial Orientation had statistically significant relationship with growth of women owned Micro and Small Enterprises. However, business experience had a statistically insignificant relationship with growth in terms of change in number of employees. Government policy and regulations had statistically insignificant relationship with growth of women owned MSEs in terms of increase in sales revenue, profit, number of employees, monthly earning of employees and Capital Employed at 0.05 level of significance. It was concluded that Government interventions have significant positive relationship with growth of women owned MSEs when properly managed from policy formulation to xxv implementation. It was recommended that the amount of subsidized entrepreneurial credit should be increased to a higher maximum level and be made available to ‘growth oriented’ individual or group women owned MSEs on graduation basis to facilitate faster growth and graduation of MSEs in to medium and large scale enterprises. The Government in conjunction with County Governments should facilitate continuous learning of the women MSE operators through technology upgrading and exchange visits, provision of modern business infrastructure and reduce bureaucratic regulatory regime to Micro and Small Enterprises. Clustering of Micro and Small Enterprises with subsequent subcontracting arrangements should be facilitated by the Government for easier access goods to National and International markets. The study results would be useful to Government policy makers, NGOs, researchers, County Authorities and Financial institutions in formulating relevant policies to facilitate faster growth and graduation of MSEs in to medium and large scale classification in line with Vision 2030, Sustainable Development Goals and Agenda 2063.