Challenges Faced By Female Entrepreneurs and Strategies Adopted To Ensure Business Growth - A Case of Selected Micro Enterprises in Juja- Kenya

Abstract

A Research Project Submitted to the School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)This research aims to determine the challenges faced by female entrepreneurs, strategies adopted to ensure business growth a case of micro enterprises in Juja, Kenya. The specific objectives were to determine: the challenges that face female entrepreneurs while growing their businesses; the strategic management practices that address challenges faced by female entrepreneurs while growing their businesses and the impact of adoption of strategies on the growth of female owned entrepreneurs’ business. The study adopted a descriptive research design to determine the strategic management challenges that female entrepreneurs face while growing their businesses in Juja- Kiambu County. The target population was the 364 owners of female businesses in Juja town and simple random sampling was used to obtain 191 female owners of businesses in Juja town. To calculate the sample size of the respondents, the study used the Yamane’s formula. The study used open and closed questions to gather primary data. The researcher selected a pilot group of 7 women from the target population to test the validity of the research instrument. Analysis was done quantitatively and qualitatively by use of descriptive statistics and inferential statistics in form of simple regression was used. Results show that female entrepreneurs in Juja Sub County encountered various challenges in effort to grow their SMEs, among the challenges include lack of capital, limited awareness of markets while growing their business and that majority face problems of access to credit. Domestic commitments deter women from making effective entrepreneurial decisions and that lack of managerial training and experience is among the key challenge leading to closure of women own SMEs in the first two years after opening. Also, business challenges diminish women’s ability to contribute effectively to sustainable development of their business. The organisation values help in women’s business growth and strategic management tools offer an opportunity for women to analyse their position in the industry. Finally, it was established that the adoption of strategies had enhanced the growth of business in terms of increased profitability, revenue growth, cashflow growth and increase in the number of customers which in turn enhanced their competitiveness. The study concludes that women in Juja area had adopted strategies to enhance businesses growth, among them included use of business plan with clear assignments of responsibilities regarding detailed implementation activities of the business, ensuring that responsibilities are clear and well assigned. Women in Juja area had adopted SWOT analysis tools to offer them an opportunity to analyse their position in the industry in terms of strength, weakness, opportunities and threats. Women entrepreneurs should be sensitised on the available credit access facilities, this should be done by the county government in close liaison with local financial institutions. The county government should organise for business training targeting women. This will help in ensuring that entrepreneurs are equipped with right skill that are a prerequisite to in ensuring business growth. Women entrepreneurs need to develop strong daily program that takes care of business operation hours and domestic commitments. Other alternatives may also be employed to salvage valuable time that is lost on domestic commitments. Cultural values that do not allow women to own property that can be used as collateral in bid to securing credit facilities should be discouraged. This study recommended that county government need to lay down clear process and encouraging regulations that promote women entrepreneurship in the county. Women owned business should have in place a clear proactive business strategies in place that outline the business core activities, prospects and a very clear workable formula towards the achievement of the stated goals. There is need to periodically conduct business strategies assessment in order to evaluate the business performance course. SME’s should be encouraged to building stronger internal structural base such that funds will be adequate to enable them function more effectively and compete favourably. The county government should come up with more institutionalize laws that will ensure adequate protection of SME’s from any form of exploitation in a bid to access funds or ensure expansion and growth of their businesses