Performance of micro and small enterprises supported by women enterprise and development fund in Eldoret town, Kenya

Abstract

Women are the individuals who suffer more in the society although they perform multiple responsibilities in the home, workplace and in the community. Organizations have come up with ways seeking to uplift and empower women economically. But still little has been achieved. The government of Kenya, in realizing the women potential, established Women Enterprise and Development Fund so as to empower women both socially and economically. This study, examined performance of enterprises supported by Women Enterprise and Development Fund in Eldoret town. This study had four objectives: first, was to find out the types of activities carried out by women entrepreneurs. Secondly, was to determine the factors that influence the performance of MSEs. Thirdly, was to establish the relative importance of these factors. And lastly, to recommend possible actions that can be taken to improve the performance of MSEs. Stratified sampling technique was used to identify the sample, a sample of 60 enterprises was used, and interview schedule was used to collect the data. Descriptive statistics was applied to compute relevant statistics regarding performance of MSEs. The estimated log-linear model revealed that market size was the most significant determinant of MSEs performance. Other variables that determined MSEs profits were loan volume and business management skills. The rest of the remaining variables in estimated model were statistically insignificant. These include: technical training; size of the business; input price; level of education; age of the entrepreneur; marital status and the level of competition. Based on the findings of the study, it is recommended that the women enterpreneurs should undertake courses that will improve their business management skills. It is also important to formulate programmes to enhance marketing products of MSEs. Finally, the government should increase the loan volume and encourage women to borrow.