Influence of Entrepreneurial Intangible Resources on Growth of Women-Owned Micro and Small Enterprises in Central Kenya Counties

Abstract

Women-owned businesses are important drivers of the economic empowerment of women throughout the world. Entrepreneurial intangible resources such as entrepreneurial capital, structural capital, innovation capital, customer relationships and entrepreneurship based skills are important in driving growth of women enterprises. Women-owned enterprises in Kenya are less likely to grow, are smaller, and are twice as likely to be operating from home compared to male-owned businesses. They also lack the necessary entrepreneurial intangible resources critical for success. Due to these challenges, the Government of Kenya established the Uwezo Fund in 2014, for youth and women empowerment in entrepreneurship. Women-owned micro and small enterprises supported by Uwezo fund have shown phenomenon growth in Central Kenya counties. However, the casualty level is still high like in rest of the country. Counties like Kiambaa, Tetu and Gatundu North have been performing dismally with some of the least growth in women enterprises. Despite the increasingly importance of entrepreneurial intangible resources in the recent times in determining enterprise success, few studies have given a considerable attention to this area. This study examined the influence of entrepreneurial intangible resources and related them to growth of women enterprises in Central Kenya counties. Five specific objectives guided the study; entrepreneurial capital, customer capital, structural capital, innovation capital, entrepreneurial skills and the moderating effect of access to entrepreneurial finance. Descriptive survey design was used in this study. The target population was 2472 women entrepreneurs registered and recipients of Uwezo Fund. Sample size was 333 respondents. Data was collected through questionnaires. Descriptive and inferential statistics were used in data analysis through Statistical Package for Social Sciences (SPSS) version 23. Response rate was 73.4%. The study established that entrepreneurial, customer, structural; innovation capital and entrepreneurship skills had positive and significant relationship with growth of women-owned enterprises. Customer capital had the highest relationship, followed by entrepreneurial capital and innovation capital as the third. Structural capital had the least positive association with growth of women-owned MSEs. The findings established that women entrepreneurs were not innovative in terms of their products, marketing capabilities and the enterprise in general. The findings showed that after introduction of access to entrepreneurial finance as a moderator, there was positive change that enhanced the relationship between entrepreneurial, structural, customer, innovation capitals and entrepreneurship skills and growth of women-owned MSEs. The study concluded that women entrepreneurs should invest in upgrading entrepreneurial capital (self and employee’s abilities through education) and training. The study concluded that customer capital has significant contribution to growth of women-owned MSEs. The study recommended that women entrepreneurs should invest in relations, networks and loyalty skill as a parameter of retaining and attracting new customers that will herald growth of enterprises. The study recommended that there is need for more entrepreneurship education and training of women entrepreneurs to enhance their knowledge of copyrights, patents, trademarks and other aspects of structural capital. The study recommended that women entrepreneurs need entrepreneurship training on the necessity of innovation as a key attribute of competitiveness and growth. The study recommended that women entrepreneurs should be bold in embracing entrepreneurship skills such as communication skills, risk taking skills and communication skills.