Craft Entrepreneurship Practices On Value Creation Among Rural Small And Micro Enterprises In Nyamira County Kenya: The Moderating Role Of Regulatory Policies.

Abstract

Value creation is a multi-dimensional concept which denotes customer while embracing returns on owners’ investments.Value creation among small and micro enterprises contributes to sustainable competitive advantage in the micro enterprise sector through creation of jobs, fostering creativity and innovation, creation of new markets and development of new customers, source of revenue through taxation of goods and services and creation of wealth. Most studies done on small and micro enterprise sector have focused more on development and growth , however, not much in research has been done on a regulatory framework that could support craft businesses in enhancing value creation among rural small and micro enterprises in Nyamira county, Kenya. The current study examined the effect of craft entrepreneurship practices on value creation among rural small and micro enterprises in Nyamira County, Kenya, a focus on the moderating role of regulatory policies. Specifically,the study soughty to examine the impact of; creativity levels, table banking practices, entrepreneurial competencies and technology influence on value creation among rural small and micro enterprises in Nyamira county Kenya. Regulatory policies moderated the relationship between craft entrepreneurship practices on value creation. This study was anchored on Resource Based View theory. Cross- sectional descriptive research design was adopted both for data collection and analysis. A sample size of four hundred and forth three firms were drawn from a target population of one thousand eight hundred and forty-six registered small and micro enterprises by use of Yamane, (1967). Stratified simple random sampling technique was used. In getting information from targeted respondents, a questionnaire was used. The reliability test was done using Cronbach alpha while validity test was based on expert’s judgment. Describing respondents’ profiles and research variables; means, standard deviations and coefficient of variation were used. A simple linear and multiple regression analysis were used to establish the effect of craft entrepreneurship practices on value creation. The research instrument was coded using SPSS for data analysis. Study results indicated a strong relationship between craft entrepreneurial practices, regulatory policies and value creation outcome.However, when handled individually, table banking variable was found to be weak, with a weak positive significant effect on value creation. The county government of Nyamira will benefit in formulating new regulatory policies intended to transform the Rural Small and Micro Enterprise sector into a value creation engine for both social and economic development. Small and micro enterprise owners will benefit from new knowledge in the growth and development of their craft businesses. The government should bring closer regulatory framework to save on time and cost of having RSMEs in Nyamira County getting formally registered for craft business undertaking, and for easy access to formal loans to boost their businesses. Further study to be done on the relationship between table banking and value creation on rural small and micro enterprises. There is need for policy on resource allocation, empowerment, training, and for technology adoption. This study is of great significance to policymakers in the SME sector, and for future researchers. More studies to be done on the effect of table banking practices on value creation among rural small and micro enterprises.