Factors influencing performance of businesses run by women street vendors in Ngara ward, Starehe sub-county, Kenya

Abstract

Street vending represents a significant share of the urban informal economy. Poverty and high levels of unemployment in Nairobi City have seen the number of women street vendors increase as they take up street trading as a means of survival and a livelihood strategy. In spite of employment opportunities offered by the sector, incomes within the sector especially from micro enterprises such as street vending are very low. Generally, informal street traders face four common constraints: economic pressures; socio-cultural challenges; adverse political conditions and policies; and operational challenges. The main purpose of the study was to establish the factors influencing performance of businesses run by women street vendors in Ngara ward, Starehe Sub-County, Kenya. Specifically, the study sought to establish the influence of location, financial capability, entrepreneurial expertise and family obligations on the performance of businesses run women street vendors in Ngara ward, Starehe Sub-County. The study also sought to establish the moderating effect of policies and regulations on the relationship between various factors influencing performance of businesses run by women street vendors and the performance of women street vendors in Ngara ward, Starehe Sub-County. The study adopted a descriptive design. The study population comprised of all the street vendors in Ngara ward, Starehe Sub-County. The target population was all the 120 women street vendors in Ngara ward, Starehe Sub-County. The study did not sample but rather conducted a census of the entire population. The study used primary data collected using a structured questionnaire. The questionnaire was self administered. The questionnaire was pilot tested on 10% of the sample population to enhance reliability and validity. Data was analyzed using the Statistical Package for Social Sciences (version 21) software and Microsoft Excel. Data analysis consisted of both descriptive and inferential statistics. Descriptive statistics included frequencies and percentages while the inferential statistics included a multiple linear regression analysis. The results were presented in form of tables and figures. The study concluded that location of a woman street vending business, financial capability, entrepreneurial expertise and family obligations influenced the performance of businesses run by women street vendors in Ngara Ward, Starehe Sub-County. The study also concluded that the policies and regulations of the government have a moderating effect on the relationship between the various factors influencing performance of businesses run by women street vendors and the performance of women street vendors in Ngara Ward, Starehe Sub-County. Based on the study findings the study recommended that the government of Kenya should evaluate the policies and regulations governing the street vending businesses with an aim of creating a more conducive environment. The study suggests that a similar study can be conducted in another area that is outside Nairobi County for comparison purposes.