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African Research Review by International Association of African Researchers and Reviewers is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
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Networks, Micro Small Enterprises (MSE’S) and Performance: the Case of Kenya
Abstract
This paper examines the role of informal personal networks in determining
Micro Small Enterprises (MSE’s) success in Kenya. It adopts the network
perspective theoretical approach. Empirically, the paper finds that MSE’s in
Kenya get around market failures and lack of formal institutions through
entrepreneurial personal network as a copying strategy in the process of global
transformation to bridge the entrepreneurial global divide. General hypothesis
predicting the ‘likelihood of MSE’s with better network performing better’ is
supported by performance models though pro-poor growth is evident with an
average business performance. Network strategies to promote small enterprises are recommended to policy makers, donors and actors in the field against those of the failed traditional strategies. However, there are few empirical studies available in this area particularly in less developed countries; therefore further research is necessary in this direction.
Micro Small Enterprises (MSE’s) success in Kenya. It adopts the network
perspective theoretical approach. Empirically, the paper finds that MSE’s in
Kenya get around market failures and lack of formal institutions through
entrepreneurial personal network as a copying strategy in the process of global
transformation to bridge the entrepreneurial global divide. General hypothesis
predicting the ‘likelihood of MSE’s with better network performing better’ is
supported by performance models though pro-poor growth is evident with an
average business performance. Network strategies to promote small enterprises are recommended to policy makers, donors and actors in the field against those of the failed traditional strategies. However, there are few empirical studies available in this area particularly in less developed countries; therefore further research is necessary in this direction.
