Determinants of micro and small enterprises growth in Kenya

2017 ◽  
Vol 24 (1) ◽  
pp. 105-118 ◽  
Author(s):  
Adan Guyo Shibia ◽  
Dulacha Galgallo Barako

Purpose The purpose of this paper is to investigate the effects of investment climate and firm-specific variables on the growth of micro and small enterprises (MSEs) in Kenya. Design/methodology/approach The paper utilized a cross-section survey data of 2,536 MSEs in Kenya. Using the sales growth as the dependent variable, the paper tests the hypotheses that investment climate variables – entrepreneur perception of fairness and affordability of the courts in dealing with commercial disputes, access to formal credit, connections to utilities, crime incidences; and firm-specific resources affect MSE growth. Findings Positive entrepreneur perception of the fairness and affordability of the courts, access to formal credit, connections to utilities, lower incidences of crime, entrepreneur education and experience positively affect MSE growth. Research limitations/implications Although the context of the study is Kenya, the study has relevance to other developing countries especially Sub-Saharan Africa due to institutional similarities. The paper, however, uses cross-sectional data, which unlike panel data, do not allow for establishing dynamic relationships. This could be a potential area for further research. Originality/value The paper is among the first to establish effects of entrepreneur perception on MSE growth with regards the court system in dealing with business disputes in terms of fairness, timeliness, affordability and enforcement. The paper also extends limited extant research on MSE growth constraints with regards to incidences of insecurity, access to bank credit, connections to utilities and internal resources.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olumide Olaoye ◽  
Cleopatra Oluseye Ibukun ◽  
Mustafa Razzak ◽  
Naftaly Mose

PurposeThe paper analyses the prevalence of extreme and multidimensional poverty in line with the sustainable development agenda. In addition, the paper examines the drivers of extreme poverty while accounting for the potential spillover effect of poverty in the region.Design/methodology/approachThe study adopts the pooled OLS with Discroll-Kraay robust standard errors to control for cross-sectional dependence. In addition, given the strong potential for endogeneity of poverty index, the authors also employ the generalized method of moments (GMM), which accounts for simultaneity and endogeneity problems, and the spatial error and lag models to control for all forms of spatial and temporal dependence since the factors that affect poverty disperse across borders.FindingsThe study finds that in addition to the traditional drivers of poverty (unemployment, low per capita GDP growth and public debt), poverty in Sub-Saharan Africa is a symptom of a deeper structural problem (lack of access to water and sanitation, high level of corruption and low level of financial development, and frequent economic busts). Likewise, the results from the spatial econometric specification show, consistently across all the specifications, that there is a substantial spillover effect of poverty across the region.Originality/valueThe main novelty of the paper is that the authors investigate the “economic shrinkage hypothesis,” and examined the potential negative spillover effect of poverty in the region.


Author(s):  
Sulait Tumwine ◽  
Richard Akisimire ◽  
Nixon Kamukama ◽  
Gad Mutaremwa

Purpose – The purpose of this paper is to develop an effective cost borrowing model of qualitative factors that are relevant to micro and small enterprises (SMEs) better performance. Design/methodology/approach – A valid research instrument was utilized to conduct a survey on 359 SMEs (131 retail businesses, 125 service businesses, 48 farming businesses and 55 other businesses) and 897 respondents that are representative of 397 SMEs and 1,087 respondents. Correlation and regression analysis were conducted to ascertain the validity of the hypotheses. Findings – It was established that cost of borrowing elements (interest rate and loan processing costs) are associated with SME performance. Furthermore, cost of borrowing as a whole accounts for 31.1 percent of the variation in performance Uganda’s SMEs. Research limitations/implications – Only a single research methodological approach was employed, future research through interviews could be undertaken to triangulate. Multiple respondents in SMEs (owner, manager and cashier) were studied neglecting others. Furthermore, the study used the cross-sectional approach – a longitudinal approach should be employed to study the trend over years. Finally, cost of borrowing was studied and by the virtual of the results, there are other factors that contribute to SME performance that were not part of this study. Practical implications – There is need to intensify initiatives to encourage greater understanding and acceptance of cost of borrowing, select appropriate elements that includes interest rate and loan processing costs in order to have affordable source of financing to establish and grow SMEs, provide employment, competitive and contribute to countries GDP. Originality/value – This is the first paper in Sub-Saharan Africa to test empirically the relationship between cost of borrowing and performance of SMEs in the Ugandan context.


Author(s):  
Castro Ngumbu Gichuki ◽  
Milcah Mulu Mutuku ◽  
Lydia Nkatha Kinuthia

Purpose – The purpose of this study is to investigate the inability to access affordable credit in Kenya which hinders many women entrepreneurs from either starting their own or expanding existing enterprises and capital base. The emergence of table banking groups attempts to fill the existing credit gap. Design/methodology/approach – A cross-sectional survey involving 225 randomly selected women entrepreneurs who participate in table banking groups within Nakuru Municipality was conducted. Data collection comprised a questionnaire whose reliability coefficient was 0.83 at 0.05 confidence level. Findings – Results indicated that a majority women entrepreneurs aged between 20 and 60 years with 71 per cent of them married. Further, 44 per cent had attained secondary-level education, while no illiterate entrepreneurs participated in the study. A positive increase in the number of employees, after members participated in table banking groups, was realized. Credit received from table banking influenced changes in the size of enterprises. Originality/value – The study shows that availability, affordability and accessibility of credit from table banking groups led to positive growth of women-owned enterprises.


Author(s):  
Joseph Mpeera Ntayi ◽  
Ephraim Mugume

Purpose – The purpose of this paper is to provide a taxonomy of strategic sourcing using the defense forces from a developing world context as a testing ground. This study builds upon the current resource-based conceptualization of strategic sourcing as a construct to introduce the institutional orientation. Design/methodology/approach – This study adopts a descriptive and analytical research design of cross-sectional nature to collect data from a sample of 120 respondents to examine the taxonomy of strategic sourcing for defense forces in sub-Saharan Africa. Data were collected using an interviewee administered questionnaire and analysed using a confirmatory factor analysis (CFA). The conceptualization of strategic sourcing is presented using a CFA. Findings – Findings reveal that strategic sourcing is a multidimensional construct composed of: information sharing and risk management, strategic purchasing, institutions for sourcing, internal integration and performance assessment, supplier management and sourcing professionalism and ethics. Research limitations/implications – The study used cross-sectional research design which limits monitoring behaviour over time. Cross-sectional data do not allow control in the analysis for residual heterogeneity. Additionally, all item scales adapted in this study were developed in either manufacturing or profit-oriented sector. Originality/value – A taxonomy for strategic sourcing within the defense forces is presented. This study is based on the observation that despite increased research, there remains a certain level of confusion surrounding the conceptualization of “strategic sourcing”. Researchers attach a startling diversity of definitions and measures to the strategic sourcing concept. Its conceptualization and stability remains an important task for scholars to undertake. Besides, much research in strategic sourcing, are conceptual frameworks identifying key elements and procedures or processes to implement strategic sourcing with sparse empirical studies. The results of the study will be used for further research on strategic sourcing in the defense forces in sub-Saharan Africa.


2019 ◽  
Vol 26 (4) ◽  
pp. 545-570 ◽  
Author(s):  
Progress Choongo ◽  
Leo Jasper Paas ◽  
Enno Masurel ◽  
Elco van Burg ◽  
John Lungu

Purpose The purpose of this paper is to examine the relationship between entrepreneurs’ personal values and corporate social responsibility (CSR) orientations among small- and medium-sized enterprises in a developing country, Zambia. Design/methodology/approach Data were collected through questionnaires. Two linear regression models were used to test the hypotheses. Findings Self-transcendence values have a significant positive influence on socially oriented CSR but do not influence environmentally oriented CSR. Self-enhancement values do not affect social and environmental CSR orientations. Conservation values have a marginally positive influence on environmentally oriented CSR but no influence on socially oriented CSR. Finally, openness to change has a significant positive influence on environmentally orientated CSR but no influence on socially oriented CSR. Research limitations/implications The limitations of this study relates to the sector from which the sample was drawn, other predictors of CSR orientations, use of cross-sectional data, and the replication of this study to validate its findings. Practical implications The findings inform policy-makers, scholars, educators, and regulators on the importance of aligning personal values with environmental and social concerns, thereby influencing entrepreneurs’ CSR orientations for the well-being of society and the natural environment. Originality/value This paper shows the influence of personal values on CSR orientations among entrepreneurs in a hardly researched Sub-Saharan Africa country.


2015 ◽  
Vol 7 (2) ◽  
pp. 67-75
Author(s):  
Ismail Yahaya ◽  
Antonio Ponce De Leon ◽  
Olalekan A. Uthman ◽  
Joaquim J. F. Soares ◽  
Gloria Macassa

Purpose – The purpose of this paper is to investigate the relationship between child sexual abuse and sexual risk behaviours as well as its potential mediators. Design/methodology/approach – This cross-sectional study used data from a cross-sectional study from 12,800 women between 15 and 49 years of age included in the 2008 Nigerian Demographic and Health Survey. Structural equation modelling (SEM) was applied to assess the association between childhood sexual abuse (CSA) and sexual risk behaviours. Findings – The authors found that CSA was directly associated with sexual risk behaviours. In addition, the association between CSA and sexual risk behaviour was also partially mediated by alcohol and cigarette use. Research limitations/implications – The results show that being abused in childhood is important for the subsequent development of sexual risk behaviours in adulthood and the association is mediated by alcohol and cigarette use. Practical implications – The results may be helpful for policy makers and health care planners in designing cultural sensitive public health intervention that will reduce the burden of CSA, its long-term effects (sexual risk behaviours) and intervening mediators that increase the risks. Social implications – These findings suggest that to reduce sexual risks, interventions to address sexual abuse needs to include other social problems (smoking, alcohol) that victims result to when faced with trauma. Originality/value – The current study is the only one so far in sub-Saharan Africa to have explored the relation between CSA and sexual risk behaviours using SEM.


2018 ◽  
Vol 14 (2) ◽  
pp. 160-173 ◽  
Author(s):  
Diana Tarraf ◽  
Dia Sanou ◽  
Rosanne Blanchet ◽  
Constance P. Nana ◽  
Malek Batal ◽  
...  

Purpose Food insecurity (FI) is an important social determinant of health and is linked with higher health care costs. There is a high prevalence of FI among recent migrant households in Canada. The purpose of this paper is to evaluate the prevalence of FI in Sub-Saharan African and Caribbean migrants in Ottawa, and to explore determinants of FI in that population. Design/methodology/approach A cross-sectional study was conducted among 190 mothers born in Sub-Saharan Africa or the Caribbean living in Ottawa and having a child between 6 and 12 years old. Health Canada’s Household Food Security Survey Module was used to evaluate participants’ food security in the past 12 months. χ2 tests and multivariate logistic regression analyses were used to measure determinants of FI (n=182). Findings A very high rate of FI (45.1 percent) was found among participants. When numerous determinants of FI were included in a multivariate model, household FI was associated with Caribbean origin, low education attainment, lone motherhood, living in Canada for five years or less and reliance on social assistance. Originality/value These findings highlight the need for FI to be explicitly addressed in migrant integration strategies in order to improve their financial power to purchase sufficient, nutritious and culturally acceptable foods. Enhancing migrants’ access to affordable child care and well-paid jobs, improving social assistance programs and providing more affordable subsidized housing programs could be beneficial.


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