The Relationship between Education and Business Performance of Women-Owned Small Enterprises: A Case of the Textile Industry in Thika Town

Abstract

Education is an important tool for business performance. It is an information gap filler to the core individual enhancing creativity, innovativeness and good managerial skills. Education trains people to be efficient, the “brain power” industry, creates new attitudes that applies an appreciation of the dignity of all work for self-fulfillment and prosperity. Education promotes technical skills to provide technical trained personnel to work at schemes of industrial and technological advancements in women (World Bank Policy Paper, 1990). This study aimed at establishing whether the level of academic education of women entrepreneurs has an influence on business performance in women-owned small-scale enterprises. The study explored the relationship between the level of academic education and business performance in small-scale enterprises owned and managed by women. The study established the characteristics of women owner managers, the relationship between the level of academic education and business performance and compared business performance between women with higher education to those with low education. The study used descriptive and causal design, stratified and simple random sampling techniques. A sample size of eighty (80) respondents was drawn from 1,347 textile enterprises availed from the municipal council office (Thika). The main research instrument used was a semi-structured questionnaire, the data was analyzed and presented using descriptive statistics such as simple tables, frequencies and percentages, Spearman’s rank correlational analysis was done to determine the relationship between the level of academic education and business performance variables using the statistical package for social sciences (SPSS). The results indicated: very little negative correlation between the level of education and consulting; a moderate degree of correlation with recording and product diversification; while there existed very weak positive correlation between the level of education and marketing and average sales turnover. The higher education category further indicated a low mean as compared to none and informal level in the average sales turnover, consulting, product diversification and recording. However, the study results established a causal relationship between the level of academic education and performance variables (average sales turnover, consulting, product diversification and recording). The study recommended a review of the current education curriculum and incorporation of entrepreneurial subjects in the curriculum from primary level to provide sufficient education for entrepreneurial preparedness and training programs to the existing woman entrepreneur to enhance development of business acumen. The study further recommended permanent premises for the hawkers to ensure products security, save time and attract customers.