The Role of Informal Finance and Capital Accumulation: A Case Study of Women Market Stalls Holders and Open Air Vendors in Kericho Municipality, Kericho County, Kenya

Abstract

In Kenya, entrepreneurship has emerged into a valuable professional skill for reducing poverty among women. Women's entrepreneurship has become necessary as a result of efforts to empower women and assist them in achieving long-term social and economic status. This research examines the social and economic viability of women's businesses. The study looks at how entrepreneurship development, which corresponds to small business organizations, might help to alleviate poverty and vulnerability among women. The study also looks into the many strategies used to promote women's entrepreneurship as a means of reducing poverty in developing countries. Indeed, a new policy initiative has been proposed, such as the government or some donor agencies reducing micro-credit interest rates or distributing small amounts of funding to cover the high cost of micro finance rather than imposing higher interest rates to encourage women to stay in their small business. The case study method was used in this investigation. The study focused on businesswomen in Municipal market in Kericho town, Kericho County who are actively involved in small and medium enterprises. For this research, a total sample size of 120 people was used, while 12 others took part in face-to-face interviews. To acquire primary data, this study used a semi-structured questionnaire method and published materials as a secondary data source. Women's entrepreneurship development is critical to eradicating poverty, empowering women with advanced education and skills, and ensuring rural women's long-term development through microcredit policies, targeted government intervention, and group-based entrepreneurship business efforts, according to this study. Since SMEs and economic development are linked, the study suggests that more jobs be created in the form of small and medium scale firms, particularly for women, through policy formation and implementation. In addition, the government should encourage women to develop and foster their entrepreneurial spirit as a means of securing meaningful work. In addition, the government should encourage the establishment of more well-supported and regulated micro finance banks to provide specialized financial help to women and their businesses.