Factors Influencing Women-Owned Micro-Enterprise (original) (raw)

2016, International Journal of Science and Research (IJSR)

Women micro-entrepreneurs are known to contribute to employment creation, income generation and livelihood improvements. However, various studies indicate that women face constraints that limit their business growth and survival. Between 2008 and 2014, the rate of business survival in Nakuru County was 1:3 in every 3 years for male operated enterprises as compared to 1:4 in every 3 years for female operated enterprises. This suggests that women entrepreneurs face constraints that are unique to their gender. This paper discusses these issues with an emphasis on the extent to which socioeconomic factors affect the performance of women-owned micro-enterprises. A survey research design was adopted to capture both the diversity of micro-enterprises and study sites characteristics in the study area. One hundred and sixty six (166) out of 830 women operated micro-enterprises (MEs) were sampled through multistage sampling procedure. Both primary and secondary data were collected. The primary data was collected through administration of questionnaires; observations; and interview schedules for key informants. Secondary data was sourced from relevant academic literature, working papers and government publications. Regression was used to help determine the relationship between socioeconomic factors of women micro-entrepreneurs and the paper shows that age, education, marital status, training, experience, finance, and market significantly and positively influence performance of women operated micro-enterprises in nakuru Town West Constituency study area. Taxation on the other hand influences the performance negatively. The paper concludes that women microentrepreneurs need to be better equipped by developing their human capital, improved accessibility to; finance, market, and reduced taxation. The study recommends that the policy makers at the national, and county governments levels should address these limitations so as to promote women micro-entrepreneurs' contribution to their own livelihood as well as to the County and National economies.