Micro and Small Scale Enterprises play a major role in strengthening the Kenyan economy. The Sessional Paper No. 2 of 1992 on Small Scale and Jua Kali Development in Kenya focused on the role of Micro and Small Enterprises and stressed the potential of the MSE sector to function as a catalyst of growth for the country’s development. The Micro and Small Enterprises and especially those owned by women are a useful tool for Poverty reduction (45%), Promotes Rural Urban balance and stimulate Entrepreneurial spirit and development. Despite their significance, past statistics indicate that three (3) out of five (5) businesses fail within the first few months of operation. The study aimed at determining the influence of Legal and Regulatory Framework on the Performance of Women Owned enterprises. Literature related to the variables of the study was reviewed in relation to Performance of Women Owned Enterprises. The Social Cultural Theory of Entrepreneurship was used in the study. The study employed a cross sectional descriptive research design and employed a positivism philosophy. The study sample size was 260 respondents identified through two stages of probabilistic sampling techniques; stratified and simple random sampling because of the population’s homogenous characteristics. Data was collected using structured questionnaire and interview guide. Reliability testing was carried out using Cronbach’s Coefficient Alpha test, which was found to be above 0.7, it indicated satisfactory reliability. Descriptive and inferential Analysis was carried out. Inferential Statistics used the simple linear regression model and ANOVA. For the specific objective, the decision to reject or fail to reject the null hypothesis was based on the significance of coefficients (p < 0.05) of the variable in the fitted regression. The study found the influence of Legal and Regulatory Framework on firm performance to be insignificant. The findings of this study supports and add knowledge to previous studies on entrepreneurship. The results support the Social Cultural Theory, that entrepreneurship can develop in an environment when its regulation, ethos, philosophies, standards and code of practices permits a variety of choices and where social, political and economic processes and procedures are not rigid and in a situation which encourages the development of personalities interested with enterprises. The study recommends all stakeholders in entrepreneurship, policy and practice and women entrepreneurs to enhance the application of Legal and Regulatory Framework in the Women Owned Enterprises in Embu County.
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In-Text Citation: ( Kangethe et al., 2022)
To Cite this Article: Kangethe, A. T. W., Simiyu, D. N., Gacheru, E. N., & Gacheru, N. (2022). Legal Regulatory Framework and the Performance of Women Owned Enterprises in Kenya A Study of Embu County. International Journal of Academic Research in Business and Social Sciences. 12(7), 81– 103.
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