The role of micro and small non farm enterprises in poverty reduction a case study of grocery and transport businesses in Gacharaigu location of Murang’a county

Abstract

The study focuses on poverty reduction through micro and small enterprises in Gacharaigu Location of Murang’a County. According to the National Poverty Eradication Plan 1999 - 2015 many of the disadvantaged groups are in the rural areas. The Murang’a County Development Profile 2013 showed that the poverty level was at 36% of the population. This case study examines the role played by grocery and transport businesses in poverty reduc tion. The study highlights the problem of poverty in Kenya in general, and in Murang’a County in particular. The objectives of the study were to establish whether the grocery and transport businesses had a positive impact on house hold incomes, whether the y enabled the households to meet their basic ne eds, whether they contributed towards acquisition of househol d assets, and whether they helped to create employment in the location. Three theoretical perspectives that are irrelevant to the area of study ha ve been used. These a re Livelihood Diversification Theory, Homans Exchange Theory and Basic Needs Dimension on poverty reduction. Exploratory Research Method was used to generate information and to create familiarity on poverty situation and poverty redu ction in the location. Purposive Sampling was used to select 30 respondents from grocery business and another 30 from the transport business to reach the intended target of 60 respondents Structured questionnaire with grouped frequency distribution was u sed to collect quantitative data. Research findings were presented in Gr ouped Frequency Distribution tables, mostly based on incomes from businesses and expenditures on essential needs for individual s and families . It was therefore an assessment of the ability of the entrepreneurs in both businesses to meet household basic needs. The conclusion of the study was that micro and small enterprises had a role to play in poverty reduction. The recommendations pointed at the support that the entrepreneurs nee ded in order to boost their businesses, which would enhance their ability to provide their families with essential things of life , thereby improving the quality of life for their households.