Factors affecting profitability of female owned Micro and Small Enterprises in Gikomba Market, Nairobi City County
Ronoh, Carolynne Anita Chebet
MetadataShow full item record
The nature and changes in the business environment calls for adoption of strategies that would aid in responding to challenges that hinder the optimal operations of MSEs (Micro and Small Enterprises). MSEs are not only faced by competition from their peers but also from corporations that are competing for the same market share. Consequently, the study examined factors affecting profitability of female owned micro and small enterprises in Gikomba. Specific objectives were to determine the influence of financial literacy on the profitability of female owned MSEs, to examine the influence of cultural practices on profitability of female owned MSEs and to establish the influence of entrepreneur training on the profitability of female owned MSEs in Gikomba Market Nairobi City County. The study was based on dual process theory, theory of planned behaviour and social learning theory. Descriptive research design was adopted, and primary data collected through administration of 226 questionnaires among female entrepreneurs in Gikomba. Descriptive and inferential statistics were used to analyze the data. Study findings indicated that respondents agreed that financial literacy, cultural practices and entrepreneurial training influenced the profitability of micro and small female owned enterprises in Gikomba Market. Regression analysis revealed positive and significant influence of financial literacy and entrepreneurial training on profitability of micro and small female owned enterprises in Gikomba. Cultural practices had an inverse and significant influence on profitability of micro and small female owned enterprises in Gikomba. It can be concluded that there is need for development of financial literacy of female entrepreneurs. Cultural practices inhibit profitability of female owned micro and small enterprises. There is also need for attendance and participation of relevant training on entrepreneurship through entrepreneur training whereby skills required for effective operation of a business enterprise would be nurtured. It was recommended that there is need for female entrepreneurs to seek measures aimed at improving their financial literacy levels. There is need for development of measures aimed at achievement of gender equity and women empowerment. Women entrepreneurs should purpose to participate on trainings around entrepreneurship, sponsored by government, World Bank and other Public or Private Institutions such this will offer them more knowledge and skills on how to deal with any market changes and strategic positioning in their respective markets.