Influence of Customer Capital on Growth of Women-Owned Micro and Small Enterprises in Central Kenya Counties

Authors

  • Joseph Gitari Ndururi Jomo Kenyatta University of Agriculture and Technology
  • Elegwa Mukulu Jomo Kenyatta University of Agriculture and Technology
  • Jane Queen Omwenga Jomo Kenyatta University of Agriculture and Technology

Abstract

Customer capital is an important entrepreneurial intangible resource that is crucial in driving growth of women-owned enterprises. Women-owned enterprises in Kenya face a number of challenges. They are less likely to grow, are smaller, and are twice as likely to be operating from home compared to male-owned ones. They also lack the necessary entrepreneurial intangible resources critical for success. Due to these challenges, the Government of Kenya established the Uwezo Fund in 2014, for youth women empowerment in entrepreneurship. Women-owned micro and small enterprises supported by Uwezo fund have shown phenomenon growth in Central Kenya counties. However, the casualty level is still high like in rest of the country. Counties like Kiambaa, Tetu and Gatundu North have been performing dismally with some of the least growth in women enterprises. Despite the increasingly importance of customer capital in supporting growth of women enterprises, few studies have given a considerable attention to this area. The specific objective was to assess the influence of customer capital on growth of women-owned MSEs in Central Kenya counties. The target population was 1228 women entrepreneurs registered and recipients of Uwezo Fund. Sample size was 399 respondents. Data was collected through questionnaires. Descriptive and inferential statistics were used in data analysis. Findings showed that customer capital had the most significant positive contribution to the growth of women enterprises. For the women entrepreneurs, customers were the most important aspect of their enterprises. Based on the findings, the study concluded that customer capital through customer loyalty; knowledge and marketing capabilities had the most significant influence on growth of women-owned MSEs. Customers were important attributes to the growth of women enterprises and the women entrepreneurs therefore need to invest more in harnessing the loyalty of the customers in terms of availing new markets and products. Recommendations were that women entrepreneurs should invest on self-knowledge in order to sustain the customers and even attract new ones to their enterprises.

Keywords: Customer Capital, Growth of Women-Owned Micro and Small Enterprises.

Author Biographies

Joseph Gitari Ndururi, Jomo Kenyatta University of Agriculture and Technology

PhD Candidate

Elegwa Mukulu, Jomo Kenyatta University of Agriculture and Technology

Principal, College of Human Resource Development

Jane Queen Omwenga, Jomo Kenyatta University of Agriculture and Technology

Senior Lecturer

References

Abiola, I. (2013). Influence of customer capital on the performance of female enterprises in Nigeria. Journal of Economics and Sustainable Development, 4 (8), 84-85.

Balogun, U.O., Bustamam, U.S.A., & Johari, F.B. (2016). Determinant factors affecting women social enterprise performances in Sokoto State, Nigeria, a pilot study. Asian Journal of Social Sciences & Humanities, 5(2), 47-48.

Creswell, J.W. (2009). Research Design qualitative, quantitative and mixed approaches.

London: SAGE.

Ewoh, E.R. (2014). Female Entrepreneurs Performance, a Systematic Literature Review of Forces Influencing the Performance of African Female Entrepreneurs. Jyväskylä, University of Jyväskylä, 2014, 123 pages. Jyväskylä studies in Economics and Business Administration, 3 (1), 1-2.

Fields, D.P. (2009). Managerial determinants of decision speed in new ventures. Strategic Management Journal, 26 (4), 355-366.

Foster, J.E. (2016). An entrepreneur’s social capital and performance. The role of access to information in the Argentinean case. Journal of Organizational Change Management, 25 (5), 682–698.

Girma, G. (2015). Factors affecting the performance of women enterprises in Micro and Small Enterprises in Gulele Sub-City, Addis Ababa. Unpublished Thesis on Urban and Regional Planning and Development. Addis Ababa University, Ethiopia.

Granovetter, M. (1985). Economic action and social structure. The problem of embeddedness.

American Journal of Sociology, 91(3), 481-510.

Hair, J. F., Money, A., Page, M., & Samouel, P. (2007). Research Methods for Business.

Chichester, UK: John Wiley & Sons Ltd.

Irtaimeh, H. J., Al-Azzam, Z.F., & Al-Quraan, A.B. (2016). Impact of Intellectual Capital on Carrefour Internal Growth Strategies (Ansoffs Model) in Governorate of Irbid. European Journal of Business and Management, 8 (5), 50-54.

Kadushin, C. (2004). Introduction to social network theory. Journal of Entrepreneurship and Regional Development, 7(3), 265-282.

Kalkana, A., Bozkurtb, O.C., & Arman, M. (2014). The impacts of intellectual capital, innovation and organizational strategy on firm performance. Adnan Kalkan et al. / Procedia - Social and Behavioral Sciences, 1(5), 700-707.

Khalique, M., Bontis, N., Shaari, J.AN., & Isa, A.H. (2015). Intellectual capital in small and medium enterprises in Pakistan. Journal of Entrepreneurship, 16 (1), 224-238.

Khan, M.W.J. (2014). Identifying the Components and Importance of Intellectual Capital in Knowledge-Intensive Organizations. Business and Economic Research, 4 (2), 299-300.

Koech, B.K., & Namusonge, G.S. (2015). Factors influencing performance of women enterprises in Nairobi County, Kenya. The Strategic Journal of Business Change and Management, 2 (2), 1799-1817.

Mitchell, J.C. (1969). The concept and use of social networks. In Mitchell, J.C. (Ed.), Social networks in urban situations, Analyses of personal relationships in Central African towns. Manchester: Manchester University Press.

Ndirangu, A.N. (2016). Determinants of Innovation Performance in Youth Enterprises in Kenya. Unpublished PhD dissertation of Jomo Kenyatta University of Technology and Agriculture, Nairobi, Kenya.

Ndirangu, A.N., Mukulu, E., Waititu, G., & Odhiambo, R. (2016). Entrepreneurial Skills and Innovation Performance in Youth Enterprises in Kenya. The International Journal of Business & Management, 41 (3), 393-395.

Ng, H. S., Kee, M. H., & Brannan, M. (2014). The Role of Key Intangible Performance Indicators for Organizational Success. Paper presented at the 8th International Conference on Intellectual Capital, Knowledge Management & Organizational Learning. Bangkok: Bangkok University Press.

Ngugi, J. K., Gakure, R.W., & Kahiri, J. (2013). The influence of intellectual capital on growth of enterprises in Kenya. International Journal of Arts and Entrepreneurship, 1 (3), 1-2.

Ogundipe, S. E. (2012). Customer capital and performance of small enterprises in Western Nigeria. Journal of Management, 4 (17), 207-215.

Okafor, R. G. (2012). Intangible Relational Capital and the Success of Entrepreneurship Firms in Nigeria. A Second Look. Journal of Economics and Sustainable Development 3(14), 179- 188.

Ongachi, R.N., & Bwisa, H.M. (2013). Factors Influencing Growth of Women MSEs, A Survey of Kitale Municipality. International Journal of Academic Research in Business and Social Sciences, 3 (10), 182-183.

Premaratne, S. P. (2002). Entrepreneurial networks and small business development, The case of small enterprises in Sri Lanka. PhD dissertation. Eindhoven University of Technology, Eindhoven, Netherlands.

Republic of Kenya, (2017). Statistics from the Status of Implementation of Uwezo Funds (2017). Nairobi: Ministry of Public Service, Youth and Gender Affairs State Department of Gender Affairs.

Salaff, J., Greve, A., Wong, S.L., & Ping, L.X.L. (2003). Ethnic entrepreneurship, social networks and the enclave. Boston: Kluwer Academic Publishers.

Tubey, R.J. (2014). NGO Intervention Measures, Performance and Trends of Women-Operated MSES in Eldoret Municipality, Kenya. International Journal of Enterprise Management, 3 (3), 214-220.

Uadiale, O.M., & Uwuigbe, U. (2011). Role of intellectual capital and performance of small enterprises in Nigeria. Journal of Business Management, 2 (3), 49-56.

Wekesa, N. (2015). Entrepreneurial factors influencing growth of SMEs in Kenya with a focus on Thika District. Unpublished PhD dissertation of Jomo Kenyatta University of Technology and Agriculture, Nairobi, Kenya.

World Bank, (2010). World Economic Forum. New York: World Bank.

Zelenler, M., Hasiloglu, S.B., & Mouritsen, M.S. (2008). An empirical evidence of the relationship between intellectual capital and innovation performance in the automotive enterprises in Turkey. Journal of Technology, Management and Innovation, 3 (4), 33-34.

Downloads

Published

2019-01-22

How to Cite

Ndururi, J. G., Mukulu, E., & Omwenga, J. Q. (2019). Influence of Customer Capital on Growth of Women-Owned Micro and Small Enterprises in Central Kenya Counties. Journal of Entrepreneurship & Project Management, 3(1), 17–32. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-entrepreneurship-proj/article/view/242

Issue

Section

Articles

Most read articles by the same author(s)