Trading at the City Park Market : exploring the livelihood strategies of female headed enterprises and the role of mobile technology in business strategies

2016

Romana Stanco [6121268] Supervisor: Yves van Leynseele

[

TRADING AT THE CITY PARK MARKET

]

Exploring the livelihood strategies of female headed enterprises and the role of mobile technology in business strategies.

Abstract

This research aims to explore the livelihood strategies of female led micro enterprises at the City Park Market in Nairobi and to discover the supportive role of mobile technology in the development of female led micro enterprises at the City Park Market. The main research question therefore is ‘What are the livelihood strategies of female headed micro enterprises at the City Park Market in Nairobi and what role does mobile technology play to support them?’ which will be answered by making use of several sub questions and which will be verified by several hypotheses with the help of a regression analysis. The research was carried out by conducting surveys and semi- structured interviews with both male and female traders at the City Park Market to discover a possible difference between gender and their livelihood strategies and the use of mobile technology. The livelihood strategies of both male and female traders appear to be the same when it comes to the reasons of becoming a trader, access to resources of capital, constraints and business strategies. Mobile technology is not directly lifting constraints by for example providing financial capital, but has a facilitating role by facilitating payments and communication with customers and suppliers and by providing a platform for finding new customers. The choice of location and research population raised limitations to researching the role of gender to livelihood strategies and differences in the use mobile technology; a rural area would be a more suitable location to conduct gender disaggregated data. Future research could be done on the development of mobile applications to facilitate supply chain management or by providing an online market place turning physical markets into online markets and consequently, lifting constraints traders face.

Acknowledgements

Hereby I present you with the thesis ‘Trading at the City Park Market’, based on data conducted at the City Park Market in Nairobi, Kenya. It has been written as a final

assignment to complete my masters in Economic geography at the University of Amsterdam (UvA). The research has been written over the course of several months, from February till June 2016. Part of it was a field trip to Nairobi during the months of March- May. The research was part of a project called: ‘Feeding the city’ organized by the International New Town Institute with the aim to contribute to solutions to the issue of food insecurity in Nairobi as a consequence of rapid urbanization.

Doing fieldwork in Nairobi has been a major learning experience for me. Entering a

completely different world, finding your way in the daily life of Nairobi and at the same time conducting a research in a short period of time, were challenging. It has taught me to keep on pursuing goals even when you feel somewhat lost and to adopt the approach of ‘Hakuna Matata’ and look at the bright sight of things. It made me realize how easy life in the Netherlands is and I learned to appreciate the freedom that we have in so many ways in the Netherlands.

I will always remember the people of Nairobi being so welcoming and helpful during my research, being stunned by the beautiful rural areas and colorfulness of the surroundings and people. I was also very inspired by the entrepreneurial initiatives and organizations we visited. In this respect I would like to thank INTI, and especially Naomi, for taking us there. A special acknowledgement to my supervisor Yves van Leynseele, for his extensive feedback and guidance, and who visited us in Nairobi. I am still laughing about the picture I made from the chapati with sugar; eating ‘pancakes’ the Dutch way!

Furthermore, I would like to thank Liz, a girl that I met at the City Park Market for helping me out with conducting surveys and translating. My dad, whom I gave some splitting headaches from reading my not so organized chapters. My younger brother for helping me out with SPSS. My family and friends for supporting me with my homesickness, my class mates and the friends we made in Nairobi for making unforgettable memories together.

Thank you all!

List of Acronyms and Abbreviations

CPM - City Park Market Nairobi

SACCOS - Savings and Credit Cooperative Societies

List of figures

Figure 1: The livelihoods framework Figure 2: Location CPM Nairobi Figure 3: Roads one

Figure 4: Roads two Figure 5: Roads three Figure 6: Stalls one Figure 7: Stalls two Figure 8: Stalls three

Figure 9: Main constraints faced by traders CPM

List of tables

Table 2: Education levels traders CPM Table 3: Reasons type of products sold Table 4: Type of technology used

Table 5: Summary of the multiple regression analysis for hypothesis two Table 6: Applications used

Table 7: Reasons of use technology Table 8: Reasons of use applications

Table 9: Role of applications in supporting business strategies and overcoming constraints Table 10: Summary of the multiple regression analysis for hypothesis three

C ontents

Abstract ... Acknowle dgements ... List of Acronyms and Abbre viations ... List of figures... List of tables ...

Chapte r 1: Introduction ... 1

Chapte r 2: Theoretical framework ... 2

2.1 Micro and Small Enterprises... 2

2.2 The role of mobile technology in the development of MSE’s ... 4

2.3 The Sustainable Livelihoods approach... 6

2.4 Conceptual model ... 10

2.5 Conclusion ... 11

Chapte r 3: Research Design ... 12

3.2 Operationalization ... 12

3.3 Research Methodology ... 13

3.4 Units of analysis & sampling method ... 15

3.5 Research methods ... 16

3.6 Data analysis ... 17

3.7 Limitations & ethical considerations ... 18

Chapte r 4: The City Park Market in Nairobi... 20

4.1 City Park Market- Overview... 20

4.2 City Park Market- Traders... 22

4.3 City Park Market- rules and regulations ... 23

4.4 Conclusion ... 24

Chapte r 5: Trading as a livelihood strategy ... 25

5.1 Trading as a livelihood strategy ... 25

5.2 Trading as a livelihood strategy- Resources of capital ... 26

5.3 Trading as a livelihood strategy - Constraints ... 30

5.4 Trading as a livelihood strategy- Business strategies ... 32

5.5 Conclusion ... 35

Chapte r 6: Mobile te chnology as a business de velopment tool ... 37

6.1 Mobile technology & the digital gender gap ... 37

6.2 Mobile technology for business development ... 40

6.3 A traders perspective for future mobile application development ... 44

6.4 Conclusion ... 45

Chapte r 7: Conclusions and recommendations for future research... 46

7.1 Answer to main research question and sub questions... 46

7.2 Place of research in debate, Limitations and Recommendations for future research ... 48

7.3 Policy recommendations ... 49

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Chapter 1: Introduction

In many African countries, the growth of Micro and Small Enterprises (MSE’S) is seen as an important strategy to promote economic growth (Kazungu & Magigi, 2012, Bula, 201), and female led enterprises are considered to accelerate this growth even more (Markel, 2014). Therefore, multiple countries have given high priority to support the development of female led MSE’s (UN, 2014; Esselaar et al., 2006; Donner & Escobari, 2010; Munyua & Mureithi, 2008). Given the fact that in the past decade the use of mobile phones in Sub Saharan Africa has increased enormously (Aker and Mbiti, 2010), mobile phones are seen as a facilitator to support this development (UN, 2014).These trends did not go unnoticed in Kenya either; MSE’s are considered to be the driving force behind the economic growth of Kenya (Kiveu & Ofafa, 2013; Bowen et al., 2009), and the role of female led MSE’s in economic growth is highly recognized (Kelley et al., 2011). Furthermore, the Kenyan government considers mobile technology to be a major factor behind the development of MSE’s (UN, 2014) stimulating the advancement of livelihoods of MSE’s (Donner & Escobari, 2010). However, to take advantage of the possible impact mobile technology could have, certain barriers still need to be overcome. The high adoption rate of mobile technology on the continent might signify that the digital divide between developing and developed countries is closed (Castano, 2008), a second digital divide has emerged (Castano, 2008). This so called digital gender gap is caused by the often gendered quality of technologies (Manfre & Nordehn, 2013) meaning that the adoption rates between men and women of mobile technology differs and that mobile technologies often don’t reach its full impact (Castano, 2008).

According to the literature, very little research has been done on the MSE sector in Kenya (Bowen et al., 2009). The same applies to the impact of mobile phones on MSE’s in developing countries (Jagon, Heeks & Walley, 2008), and the limited existence of gender disaggregated data on mobile ownership, access and usage in low income countries (GSMA, 2015). Therefore, the focus of this research will be twofold: examining the role of mobile technology in facilitating the development of sustainable female led MSE’s in Kenya, and to see if the digital gender gap limits the access to mobile technology, impeding the pursuit of sustainable livelihoods by women. The central question then becomes: ‘What are the livelihood strategies of female headed micro enterprises at the City Park Market in Nairobi and what role does mobile technology play to support them?’.

The societal relevance of this research is to provide policy makers with more knowledge on the role of mobile technology in the development of MSE’s and how this technology can support the livelihoods of vulnerable groups like women. To carry out the research, an overview of existing literature on the different concepts will be examined, culminating in the research question. During a two month fieldwork trip to Nairobi, data on the livelihood

strategies of traders at the City Park Market and their use of mobile technology will be collected through surveys. These surveys will be conducted on both male and female traders, providing new data which could reduce the lack of gender disaggregated data. The qualitative data will be analyzed through quantitative research methods, specifically regression analysis. The thesis will finish with a conclusion and recommendations for future research.

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Chapter 2: Theoretical framework

This chapter presents the theoretical framework culminating in the research question. First, the concept of MSE’s and the main constraints confronted by MSE’s will be explored. After that, the chapter will continue with the role of mobile technology in the development of MSE’s and its role in overcoming constraints confronted by MSE’s. To finish it will then follow up with the framework of the sustainable livelihoods approach to get a better insight in the concept of livelihood strategies.

2.1 Micro and Small Enterprises

A micro or small enterprise is a type of small business that is often registered, with five or less employees and with a low starting capital requirement Mwobobia (2012). Kazungu et al.(2014) separate the two, and consider a micro enterprise as a business with 1-4 employees and a small enterprise as a business with between 5-49 employees. Esselaar et al. (2006) add an even smaller dimension of businesses to that and distinguish between survivalist

businesses and micro or small businesses. Survivalist businesses are businesses generating enough income for day to day expenses, which have no employees and show no signs of any formalities such as keeping records or paying taxes. Micro or small businesses on the other hand, do generate a continuous income, have less than ten employees and show signs of formalities (Esselaar et al., 2006).

Rogerson (1996) also divides between survivalist enterprises and micro enterprises.

Survivalist enterprises are primarily featured by poverty and a desperate will to survive and are characterized as enterprises that fail to gain even a minimum standard of income, with little capital investment, almost no training of skills and only constrained opportunities for expansion into a viable business. Micro enterprises are very small businesses, often involving only the owner, some family members and at most one to four employees (Rogerson, 1996). They are informal for example in terms of accounting procedures and have a limited capital base, but they do have the potential to develop into larger, formal enterprises (Rogerson, 1996). Many of the businesses at the CPM are ran by the owner or have less than five

employees. Some businesses struggle to survive, others are able to generate a steady income. Therefore, businesses at the CPM fall somewhere in between the definitions of survivalist and micro enterprises as outlined above and will be regarded as micro enterprises as

according to the definition of Rogerson (1996). However, the CPM is a council market and therefore regarded as a formal market with registered businesses and the requirement of a license to operate (Irungu et al., 2007). Therefore, the definition of Mwobobia (2012) will be taken into account as well. Because micro enterprises are part of the MSE sector, the

expression of MSE’s will be used to describe the characteristics of the sector itself. Worldwide, the MSE sector has been recognized as important to the creation of wealth, employment and to eradicate poverty (Kithae, 2012). According to Donner & Escobari (2010) their importance to livelihoods and poverty alleviation is undeniable and MSE’s play an important role in livelihood strategies by helping to diversify income sources, improving cash flow and providing support in difficult times (Darroll, 2012). Therefore, many African countries have given high priority to supporting the development of MSE’s (Esselaar et al., 2006; Munyua &Mureithi, 2008). A number of MSE’s in developing countries are women

3 | P a g e owned businesses (Misango & Ongiti, 2013). Because it is shown that poverty reduction is accelerated when more women are entering the labor force and that women can help building sustainable markets and improve welfare for their families (Markel, 2014, Kelley et all., 2011), many countries have given high priority to the development of female led MSE’s (UN, 2014; Esselaar et al., 2006; Donner & Escobari, 2010; Munyua & Mureithi, 2008).

2.1.1 Micro and Small Enterprises in Kenya

As previously outlined in the introduction, the role of MSE’s in economic development in Kenya is recognized, and is seen as one of the strategies to achieve industrialization, generate employment and to reduce poverty (Atieno, 2009; Munyua & Mureithi, 2008 and David et al., 2013). The MSE sector has become an important employer of the female labor force in Kenya (Nyang’ori, 2010). Female led businesses make an important contribution to the Kenyan economy and account for around 48 percent of all micro, small and medium- sized enterprises (GEM, 2006). They make up for 85 percent of the jobs in the informal sector (GEM, 2006). Women are dominating in wholesale and retail, rural manufacturing and urban agriculture sectors (Ministry of Kenya, 2015). 61% of the people in the wholesale and retail sector are women (Mbithi, 2015). According to Munyua & Mureithi (2008) and GEM (2006) women are often working in the trading business (74.7 percent), whereby previous research suggests that the high level of women in this business is a result of lower entry requirements in the business of trading (such as a lower starting capital), as opposed to other businesses (Nabintu, 2013). Because of the important contribution of women to its economy, the government of Kenya is highly supporting the development of female led MSE’s (Kelley et al., 2011).

2.1.2 Main constraints faced by Micro and Small Enterprises

Although the role of MSE’s on economic development has gained greater attention, many MSE’s remain small and struggle to survive (Donner & Escobari, 2010; Kazunu & Magigi, 2012; ILO, 2008). MSE’s often face constraints related to the level of access to markets and marketing information (Kiveu & Ofafa, 2013). The high cost of doing business, weak value chain integration, inability to meet production standards, few opportunities to do business outside city boundaries (Darroll, 2012; Mbithi, 2015), lack of financial capital, banking credit, poor infrastructure and poor management and planning are among the other reasons for MSE’s struggling to survive (Bowen et al., 2009; Atieno, 2009; Kazunu & Magigi, 2012; Mbithi, 2015). Lack of access to financial capital is often related to the small size and lack of growth potential of MSE’s, causing financial institutions to consider them not creditworthy (Atieno, 2009), which is especially the case for female led MSE’s (Hallward- Driemeier, 2011). MSE’s are less likely to secure a bank loan than large firms and they rely on internal or personal funds (Worldbank, 2015; ILO, 2008). The lack of financial capital inevitably means that they are more vulnerable to external shocks such as macroeconomic instability (Atieno, 2009). In the end, the constraints MSE’s are confronted with mean that poverty reduction and achieving a sustainable livelihood is limited (Kazunu & Magigi, 2012). 2.1.3 Gender induced constraints

Livelihood building assets and financial, social and human capital often have a gendered quality (Chirau, 2014; Markel & Jones, 2015) caused by social, cultural and economic limitations (IFAD, 2003). For example, access to financial capital for women is often more difficult than access to capital for men (Chirau, 2014; Darroll, 2012; Mbithi, 2015, Bulla;

4 | P a g e 2012), and the lack of financial capital is often rated as their main constraint (GEM, 2006; Mwobobia, 2012; Misungu & Ongiti, 2013). In Kenya, access to financial capital is difficult because to get access to financial capital, one needs collateral (Mwobobia, 2012; Mbithi, 2015; Insitute of Economic Affairs, 2015; Misungu & Ongiti, 2013; ILO, 2008; Tongi, 2015), and only 1% of the women in Kenya owns property (Mwobobia, 2012;).

The various roles women play in a family is another example of gender induced constraints, resulting in additional time constraints (Mutopo, 2010; Horenstein, 1989; GEM, 2006; Mwobobia, 2012, Darroll, 2012; Mbithi, 2015; Insitute of Economic Affairs, 2015; Misungu & Ongiti, 2013; ILO, 2008). Time constraints reduce women’s access to work, capital and time to improve their businesses (Markel, 2014). Women are also often disadvantaged when it comes to social capital (Chirau, 2014). For example, if information on market opportunities is deliberately not made available to women, it might influence the profitability of their businesses (Murray, 2001). This lack of information on its turn again leads to limited access to national and regional markets (Mbithi, 2015).

In the end, the subsistence of constraints means that many women are restrained from fully developing their entrepreneurial potential (Manfre, n.d.). This is not a feature limited to the Kenyan MSE’s, because worldwide, women’s businesses tend to be small, less likely to grow and less profitable (Lock & Smith, 2015; Munya & Mureithi, 2008; Bulla, 2012; ILO, 2008). To reduce the constraints outlined above, promoting women’s economic and political

empowerment has received greater attention and Kenya has implemented a number of business reforms, such as facilitating access to financial credit in order to ease the process of doing business in Kenya (Lock & Smith, 2015; ILO, 2008). Furthermore, the implementation of the law ‘One Third Rule’, which means that there is at least a one third requirement of women in elective bodies, has promoted greater gender equality and may support female entrepreneurship (Lock & Smith, 2015). This law also established the Women Enterprise Fund, which aims at eliminating the collateral issue women have. This fund lends money to solidarity groups who guarantee each member (Mbithi, 2015; Institute of Economic Affairs, 2008).

However, despite the fact that the Kenyan government has taken steps to promote gender equality, effective enacting and implementing of these initiatives has yet to be demonstrated (Institute of Economic affairs, 2015). Additionally, the funds allocated by the government and the various institutions are too small for business expansion and in order to qualify for a loan, a continuation of business is required (Mbithi, 2015).

2.2 The role of mobile technology in the development of MSE’s

Although Sub Saharan Africa has some of the lowest levels of infrastructure in the world, the access to and the use of mobile phones has increased tremendously in the past decade (Aker and Mbiti, 2010). Considering the high adoption rates of mobile phones on the continent (63% in 2013), mobile technology is seen as a facilitating tool for future development (UN,

5 | P a g e 2014) by connecting individuals to individuals and providing easy access to information, markets and services (Aker and Mbiti, 2010).

The government of Kenya identified Information and Communication Technologies (ICT’s) such as mobiles phones, as one of the major driving forces behind the growth of MSE’s (UN, 2014). Therefore, in 1998, the Kenya Communications Act was passed which liberalized the telecommunication market entry and operation and making the sector grow rapidly in the early 2000’s (Foster and Heeks, 2013). Nowadays, mobile technology adoption rates are around 95 percent (Kiveu & Ofafa , 2013). According to Foster & Heeks (2013) the mobile phone sector increasingly reaches low-income groups in Kenya and there is evidence that it has a measurable impact on their livelihoods. The usage of mobile phones among MSE’s in Kenya is high (Munyua & Mureithi, 2008) and the increasing connectivity means that it might spill over to improve the livelihoods of MSE’s (Donner & Escobari, 2010). 2.2.1 The role of mobile technology in overcoming constraints

According to Perekwa et al., (2016) the impact of mobile technology on the development of MSE’s can be incremental by improving efficiency and productivity and by reducing costs and risks of existing processes and activities of MSE’s. It can also be transformational by unlocking new services and opportunities. Furthermore, it enhances the potential to increase MSE sales and can enable the creation of new livelihoods (Perekwa et al., 2016).

Mobile technology is also seen as a potential way of exchanging information and providing access to information for smallholders (Palmer, 2012; Halme et al., 2012; Aker & Mbiti, 2010; Donner & Escobari, 2010). Mobile technology can increase the speed of

communication and in this way making trading quicker (Kiveu & Ofafa, 2013; Munyua & Mureithi, 2008). It can also reduce the cost of communication by removing the need to travel, enabling the buyer to dealing directly with the producer (Kiveu & Ofafa, 2013; Manfre, n.d.). Furthermore, mobile technology allows new businesses and markets to emerge and make trading less localized (Jagon, Heeks & Walley, 2008). If for example e-commerce is properly adopted, it can provide benefits such as rapid communication between buyers and sellers, ability to reach new customers, shortening supply chains and by limiting time constraints and delivery costs (UN, 2014). It can also help generate new contacts with potential buyers or sellers who were before out of reach (Donner & Escobari, 2010). Despite of that, Donner & Escobari (2010) explain that two previous studies conducted in India show that new

customers are still more often acquired via face to face channels than via a phone call. In correspondence with that, mobile technology can help strengthen existing networks but only if they have already established a face to face bond (Donner & Escobari, 2010). Furthermore, the use and development of e-commerce is rather slow due to several barriers such as socio-political constraints, illiteracy, content and language and access to and use of ICT’s such as mobile technology (UN, 2014).

However, adoption rates of mobile technology in sub Saharan Africa might be high (Aker & Mbiti, 2010), most technological services are not accessible for female users as they are confronted with higher levels of technological and language illiteracy, lack control and

6 | P a g e ownership of technology and on top of that, societal norms discourage women from using technology (Manfre & Nordehn, 2013). These gender induced constraints cause a so called second digital divide (Sow, 2014; Castaño, 2008) and concerns the necessary skills to obtain all the benefits of access (the level of digital literacy) (Castaño, 2008). It affects women more than men hence it’s regarded as the digital gender gap (Castaño, 2008). This digital gender gap could be surmounted by developing applications from a gendered point of view (Manfre, n.d.), responding to the tailored technologies women require (O’Donnell, 2014). In this way it can increase women’s access to and induce relevant use of ICT’s (UN, 2005). Overcoming the digital gender gap is important, because access to mobile technologies can be essential for women entrepreneurs in starting and growing a business (Sow, 2014).

Not only mobile phones itself are enabling the development of small scale enterprises, mobile applications on these mobile phones are creating opportunities for small scale enterprises by supporting for example money transfers (Aker & Mbiti, 2010). An important example of such application in Kenya is M-pesa (M for mobile, Pesa for money in Swahili), a mobile banking application that facilitates transactions and improves money security and money circulation (Plyler, Haas & Nagarajan, 2010; Kiveu & Ofafa, 2013). It also improves financial inclusion by providing a service that facilitates the managing of livelihoods of people (Duncombe, 2012). Nowadays, M-pesa has a great customer base (Duncombe, 2012), with 25 million customers (Bicheno, 2016). According to Foster and Heeks (2013) the unstable environment caused by the political crisis in late 2007 led to this big customer base.

What is important to consider is that M-pesa itself is not creating community effects such as local business expansion, but rather has a facilitating effect in that it promotes an easy, quick and secure way of transferring money (Plyler, Haas & Nagarajan, 2010). Not only M-pesa is an important application to consider during the fieldwork, the facilitating role of other applications such as Facebook and WhatsApp in MSE development will also be explored. 2.3 The Sustainable Livelihoods approach

The sustainable livelihoods approach provides a framework of how people construct a living (Chirau, 2014) and originates from the 1990’s as a new approach to household studies (De Haan & Zoomers, 2005). The framework identifies the resources of capital (natural, physical, financial, human and social), activities and strategies that lead to the construction of a

livelihood. It also identifies the challenges affecting the sustainability of livelihoods in the face of economic troubles and severe household shocks and highlights the roles of formal, informal, organizational and institutional factors enhancing or limiting sustainable livelihood outcomes (Chirau, 2014; Musekiwa, 2013). This section aims to explore the framework of the sustainable livelihoods approach to explain the concept of livelihood strategies of MSE’s. 2.3.1 Livelihood Strategies

Livelihood strategies are coping strategies to be able to respond to unpredictable shocks in a livelihood (short term adaptations) and strategies used to improve living conditions in the long term (Chirau, 2014, Isaac et al., 2003). Agricultural intensification, livelihood

7 | P a g e pursuing certain livelihood strategies, people try to achieve certain livelihood outcomes (Isaac et al., 2003). Livelihood outcomes include more income, increased well-being, reduced vulnerability and improved food security (Serrat, 2008).

Considering the location of the CPM in the urban area of Nairobi and the market traders already being settled in Nairobi (thus no migration), livelihood diversification is deemed to be the most important livelihood strategy to take into consideration. Urban livelihoods diversify themselves by formal waged employment, informal trading and other service

activities undertaken by different family members and in different activities and sectors of the economy (Chirau, 2014). Hereby, trading as a strategy for diversification is important due to the nature of a marketplace with trading being the main activity. The type of livelihood strategies people are able to pursue and with it the type of livelihood outcomes, are influenced by various factors as can be seen from the framework below (Scoones, 1998).

Figure 1: The Livelihoods Framework

The influence of the various factors on the livelihood strategies people are able to pursue, will be outlined below.

Context:

When it comes to the strategies people choose, human behavior should not always be seen as conscious or intentional: much of what people do cannot be classified as strategic (De Haan & Zoomers, 2005). Behavior might be related to coincidences or to geographical settings, seasonality, gender, social class and path dependency (De Haan & Zoomers, 2005). In this research, seasonality and gender are in particular of interest when it comes to livelihood strategies of MSE’s. In the light of seasonal shortages it could possibly influence the variety of products that is available at the supplier (the farm) and which can be offered at the CPM. Together with declining resources, which could influence the amount of products and the variety of products traders can buy from the farmers, it is one of the stresses part of the so

8 | P a g e called vulnerability context (Krantz, 2001). Gender could be of influence on how and if people can deal with stresses (Chambers & Conway, 1992). The empirical chapters will explore the role of these, according to De Haan & Zoomers, influential factors. Not only stresses are part of this vulnerability context, shocks, such as fires, floods and epidemics are also part of it (Krantz, 2001). Access to resources of capital can improve the rate of

adaptation to vulnerabilities (FAO, 2016); the more resources of capital a household owns, the less susceptible they will be to the vulnerability context they operate in (SOAS, 2016). Terms of trade are also an important contextual factor due to the nature of the activities at the CPM (trading) and will be further explored in chapter four.

Livelihood resources:

The type of livelihood strategies that can be pursued are also dependant on the resources of capital that are available to people (Krantz, 2001). According to Scoones (1998), the following resources of capital exist:

• Natural capital, which comprises the natural resource stocks (e.g. soil, water, air, genetic resources) and environment (e.g. the hydrological cycle) from which

resources are available and services useful for livelihoods are derived (Krantz, 2001).. • Financial capital, which comprises the capital base (income such as cash, credit/ debt,

savings and other economic assets including basic infrastructure and production equipment and technologies) (Krantz, 2001).

• Human capital, which comprises the skills, knowledge, ability to labour and good health and physical capability (Krantz, 2001).

• Social capital, the social resources (networks, social claims, social relations, affiliations, associations) which people can make use of (Krantz, 2001).

Carney (2003) adds to these also physical capital which comprises basic infrastructure such as transport, shelter, water energy and communications, the production equipment that people need to pursue their livelihood strategies and roads (which are also accessible during the rainy season) (Carney et al.,1999).

The increase of one of the capitals will usually lead to the increase of other capitals; an increase in human capital (education) often leads to an increase in financial capital (a higher income). However, an increase in for example financial capital when a person sells e.g. their land, can lead to a decrease in natural capital (owning less land) (SOAS, 2016). The resources of capitals can be substituted by each other to a certain extent; if economic capital is lacking, people can fall back upon social capital like family or neighbourhood ties for support

(Farrington et al., 1999). Or if a rural woman does not have land to cultivate, she could try to acquire land through her network (De Haan & Zoomers, 2005).

However, capitals can only be substituted if access to these capitals is approved by the power holders within a society (De Haan & Zoomers, 2005) since approval of access to these resources in many cases is defined by existing property relations and power structures (De Haan & Zoomers, 2005). Access to resources of capitals thus cannot be seen apart from the context in which people live (Farrington et al., 1999), For example, the wellbeing of and

9 | P a g e access to the capitals of especially women and children is recognized since their levels of access might be inferior as compared to that of men, the bigger social group or the community (Chambers & Conway, 1992). The gender disaggregated data collected during this research aims to address the role of gender in access to capitals.

Institutional processes and organizational structures:

As stated above, not only resources of capital itself are important when it comes to the livelihood strategies people are able to pursue, the role of institutional processes and organizational structures on the level of access to these resources should also be taken into consideration (Serrat, 2008, Scoones, 1998). Without access to resources, certain livelihood strategies cannot be pursued (Krantz, 2001). Institutional processes are formal rules and conventions, informal codes of behaviour, laws, property rights and markets. In this case, the market as an institution is of importance. Organizational structures are groups of individuals with the same objectives such as government agencies, NGO’s, associations and private companies. Social relations are sub divided in gender, caste, class, age, ethnicity and religion and could imply matching life opportunities or expectations of others, resulting in a group depended pathway (De Haan & Zoomers, 2005). In this research, the influence of gender on the level of access to resources of capital will be taken into consideration. Institutions

processes and Organizational structures are dynamic and constantly changing (De Haan & Zoomers, 2005), shaped and reshaped over time since they are not fixed objects or bounded social systems (Scoones, 1998).

Processes (institutional, policy and cultural factors) and structures (the role of the private sector or government) determine the access to assets and livelihood opportunities and how they can be converted into outcomes (Farrington et all, 1999). They influence the range of livelihood options and influence the access to assets, which in its turn influence the

vulnerability to shocks (Carloni & Crowley, 2005). If institutions for example discriminate against poor people, it reduces their access to livelihood assets (Isaac et al., 2003). If people have higher access to these resources, it can also influence the policies, institutions and processes that affect their livelihoods (Isaac et al, 2003).

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2.4 Conceptual model

Institutional processes & organisational structures

Laws Context Business strategies of traders at CPM Types used Reasons of use Usefulness Mobile technology Livelihood strategies (MSE’S) Livelihood outcomes Access to resources of capitals Facilitates development of Leads to Influences Financial Social Human Physical Such as Stresses and shocks at CPM Gender Type of

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2.5 Conclusion

This chapter started by exploring the concept of MSE’s and refining it in a concept applicable to the CPM by using the definition of a micro enterprise Rogerson (1996), an enterprise that has at most four employees and is informal but with the potential to develop itself into a larger and formal business. According to the literature, the role of the MSE sector for

economic development and poverty alleviation has been recognized worldwide. Many of the businesses in the MSE sector are female led businesses and contribute a great deal to

economies. Therefore, many countries have given high priority to the development of female led MSE’s. In Kenya, the role of female led MSE’s in economic development and poverty alleviation is recognized as well and are highly supported.

Despite the recognition of the role of MSE’s in economic development, many MSE’s struggle to survive and remain small because of the constraints they face such as the lack of financial capital or market access, making it harder for them to achieve sustainable livelihoods. Another component, gender, needs to be added to these constraints as well; due to social and cultural roles, women are more often confronted with constraints than men preventing them from fully unlocking their entrepreneurial potential. The Kenyan government has mad business reforms to stimulate the development of female enterprises but its effects remain small.

The high adoption rate of mobile technology is seen as a way to support the development of MSE’s because it could lift constraints by e.g. facilitating communication and improving market access. The recognition of the facilitating role of mobile technology is already noticeable in the high amount of users of the banking application M-pesa. However, mobile technology has a gendered component by not being adapted to female users causing a digital gender gap. This limits the full potential mobile technology is considered to have when it comes to supporting the development of female led MSE’s.

The chapter also provided insight in the sustainable livelihoods framework to get a better understanding of the concept of livelihood strategies; strategies that people choose to achieve certain livelihood outcomes such as a better income. The types of livelihood strategies people are able to choose depend on the type of capital resources they have access to. The access of it is influenced by the institutional processes and organizational structures of an environment people are living in. The access to different resources of capital in itself is of influence on how people can deal with the context people are living in; the exposure to shocks and stresses. Together, it causes certain livelihood outcomes.

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Chapter 3: Research Design

This chapter builds upon the theoretical framework in chapter two and outlines how the theory and the research question are operationalised. First, the main research question and sub questions will be outlined. After that, the operationalisation of the main concepts will follow. From there it goes on to specifying the units of analysis and sampling method. In addition, it explains the methods for data collection and ends by briefly discussing the limitations and ethical considerations of the research.

3.1 Research question and sub-questions

What are the livelihood strategies of female led micro enterprises at the City Park Market in Nairobi and what role does mobile technology play to support them?

Sub-questions

1. What are the characteristics of the traders at the City Park Market? 2. What are the livelihood strategies of the traders at the City Park Market?

3. What are the different resources of capital available to female led micro enterprises at the City Park Market?

4. What are the main constraints female led micro enterprises are confronted with? 5. What are the business strategies of female led micro enterprises to overcome these

constraints?

6. What role does mobile technology play for female led micro enterprises at the City Park Market?

7. What type of applications do female led micro enterprises at the City Park Market use?

3.2 Operationalization

To transform the theory presented in the theoretical framework in chapter two into a

measurable and quantifiable form, the main concepts of the research are operationalised into several dimensions that are divided into variables with several indicators as presented below. Female led micro enterprises:

The concept of female led micro enterprises is operationalized by the following dimensions: • Characteristics (age, origin, gender, education level, household type)

13 | P a g e Livelihood strategies

The concept of livelihood strategies is conceptualized through the Sustainable Livelihoods Framework. The different capitals, the vulnerability context and the institutional processes and structures are key in deriving the different strategies in regard to women’s business strategies. The following dimensions were derived:

• Capitals (financial, human, social, physical)

• Vulnerability context/constraints faced (access to capitals, human, social, economic, physical)

• Business strategies (type of products sold, ways of distinguishing themselves from other traders, source of supply)

Mobile technology:

The third main concept is operationalized through the following dimensions: • Types of technology used (mobile phones, radio, computer, tablet) • Reasons of use (business, private, other use)

• Usefulness of mobile technology

• Level of usefulness (very useful, useful, not so useful)

• Types of applications used (e.g. Facebook, WhatsApp, M-pesa) • Reasons of use (e.g. supply chain management, market linkages) • Usefulness in overcoming constraints

With the use of these dimensions and the corresponding indicators, the research analyses the types of technology used, the reasons for using technology and the way it can help support the business strategies and overcoming constraints of micro enterprises. Reasons of use and usefulness in overcoming constraints form the link between mobile technology and livelihood strategies of female led micro enterprises.

3.3 Research Methodology

As outlined in the previous section, the main concepts of the research are operationalized through various dimensions and variables. A variety of methods is selected because they are considered to be best suited answer to the research questions outlined in section 3.1. The starting point of this research is based on theoretical underpinnings, which is important because it is the foundation the research is built on, and from there on, the methods can be chosen and analysis carried out (Osanloo & Grant, 2016). The theory has shown that the Sustainable Livelihoods Framework as a base to explain the livelihood strategy of micro enterprises and the constraints micro enterprises are confronted with, influenced by the context and the institutional processes and organizational structures micro enterprises operate in, has been useful. Important hereby is that the framework will not be used in a ‘horizontal’ way by looking at the diversification of livelihoods, but by adapting it to a more ‘vertical’ way of looking at diversification of a livelihood strategy itself, in this case the strategy of micro entrepreneurship. Which business strategies do traders adapt to pursue certain

14 | P a g e livelihood outcomes? The concept of mobile technology and micro entrepreneurship can hereby be linked by perceiving mobile technology as a tool to support the business strategies and development of micro enterprises.

In order to study the livelihood strategies of female led micro enterprises and the role of mobile technology in supporting this strategy, two research methods were chosen. By using two research methods, this thesis adopts a mixed methods approach. A mixed methods approach integrates both quantitative and qualitative data collection (Cresswell et al., 2011). Quantitative data collection consist of numerical data and often come from surveys,

structured interviews, observation checklists or archival records (Jalil, 2013). Qualitative data are non-numerical and come from informant interviews, focus group discussions, open ended questionnaires, field notes and personal logs or journals (Jalil, 2013).

The benefits of a mixed methods approach are that it promotes a diversity in data collection and that it answers questions from a number of perspectives which leads to greater validity (Bulsara, 2014; Jalil, 2013) and enriches the research findings (Jalil, 2013). It also ensures that there are no gaps in the data collected and that pre-existing assumptions from the researcher are less likely (Bulsara, 2014). Questions raised in a mixed methods approach are how, what, where, why and value questions (Bulsara, 2014).

There are two types of data collection within the mixed methods approach. One is a parallel concurrent mixed-methods/model design whereby two types of data are collected and analysed. The other approach is a sequential form whereby one type of data is providing a basis for the collection of another type of data (Cameron, 2009). The design type of this research will be explanatory, whereby quantitative research followed by qualitative research making it an explanatory sequential research design (Cameron, 2009). This type of design connects data between two phases (Cameron, 2009) whereby the qualitative data helps explain or builds upon initial quantitative results (Cresswell et al., 2011). There are two variants of the explanatory design: a follow- up explanations model which is used when a researcher needs qualitative data to explain or expand on quantitative results to be examined in more detail and a participant selection model which is used when a researchers need quantitative information to identify and purposefully select appropriate participants for a follow-up and in-depth qualitative study (Cresswell et al., 2011). In this research, the follow- up explanations model will be used to expand on the quantitative results. In accordance with the two phased nature of the explanatory sequential design, the first quantitative phase aims to provide information about the context micro enterprises operate in and the livelihood strategies of micro enterprises. Both male and female enterprises will be researched with the aim of discovering a possible difference between male and female led enterprises when it comes to their livelihood strategies and the use of mobile technology.

By analysing the data from phase one, the results from the quantitative research that appear to be most significant, will be identified (Cresswell et al., 2011). The identification of the most significant results of the quantitative research in phase one, will form the base of phase two (Cresswell et al., 2011). Phase two then aims to explain and further investigate the significant results from phase one (Cresswell et al., 2011) by conducting semi- structured interviews (see section 3.5.3).

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3.4 Units of analysis & sampling method

The units of analysis of this research will be male and female led micro enterprises and their livelihood strategies and mobile technology and its impact on the development of micro enterprises. According to the literature, mobile technology can influence the development of female led micro enterprises and the focus will therefore be on the implications of adoption of mobile technology by both male and female traders to explore if there is a difference between the development of male and female led businesses. The focus on both male and female led businesses was chosen because the development of micro enterprises cannot be seen apart from the context in which people live (Farrington et all, 1999). Therefore it was needed to explore the level of access to the different types of capital and the vulnerabilities female led micro enterprises are confronted with in discovering why and which strategies female traders adopt at the CPM compared to those of males. By exploring for example the adoption rates of mobile technology, the link between the units of analysis could be made. By selecting the research units by defining the specific location of research based on

geographical location (which market in Nairobi to do research on) and type of businesses (micro enterprises) as to reach the purpose of answering the research question, the chosen method to carry out the research was purposive sampling (Teddlie & Yu, 2007). Before carrying out the method of purposive sampling, some markets in Nairobi were visited to get a better insight in what type of markets they were and how accessible they were. Therefore, it could be interpreted that convenience sampling has been used by taking into considering the accessibility and proximity of the market before conducting the actual research (Teddlie & Yu, 2007). As a student from the Netherlands, unfamiliar with the environment and taking into account cultural implications as a white woman, I considered this to be important. Another important remark when it comes to conducting the sampling was becoming familiar with the selected location of research. It was helpful to ‘small talk’ with people to get a better insight in relationships at the market and to ask them for other participants. Participating in the market life was among becoming familiar with the location as well; eating the well-known dish Nyama Choma in one of the lunch spots at the market even provided with a translator which was important due to the fact that some market sellers only spoke Swahili. Becoming familiar with the market thus meant building up good relationship which was also important for snowball sampling at the market itself in order to find participants for the surveys (Biernacki & Waldorf, 1981) and informing people about the research, taking ethical considerations in mind (Diener and Crandall, 1978); important because apparently previous research had been conducted at the City Park Market making people sometimes suspicious and reluctant to talk. The interviews were conducted by selecting 10 traders (5 male- 5 female), whom indicated that they were willing to participate in semi- structured interviews. The survey conducted, included 110 participants (48 males- 53 females). In addition, 2 semi- structured interviews with female farmers in Banana in Kiambu County and a group focus discussion, concerning a table banking meeting with 9 farmers, were carried out to get a better insight in both the supply side of the products sold at the City Park Market and social ties in acquiring financial capital. However, when analysing the data, it was decided to solely

16 | P a g e focus on the traders at the City Park Market as a unit of analysis to make the research not too extensive and data of these interviews has therefore been left out of the final analysis. 3.5 Research methods

As outlined in the previous section, the research adopted a mixed methods approach based on two phases. Preliminary to the first phase, secondary data collection was studied to get a better insight in the existing theories on the main concepts. The first phase then started by undertaking a trip to Nairobi and doing an explorative walk at the selected market. After that the quantitative research was carried out and this formed the basis of the qualitative, second phase that was carried out after analysing the data of phase one.

3.5.1 Observations

Before conducting the actual research, a visit to the City Park Market in Nairobi, Kenya was made to explore the location, its social differentiation and the type of vendors. This was deemed important to see if the market was suited and accessible for the research. Visiting the market as a customer seemed the most suitable way for doing this, enabling blending in and doing observations without it being visible that research was conducted. Grocery shopping made it possible to make small talks with people which provided insight in their business. Furthermore, the observations helped exploring the location and social differentiation at the market.

3.5.2 Surveys

Part of the research was conducting a survey. A survey is a research method for collecting information from a selected group of people using standardized questionnaires or interviews (Penn State University, 2006). It collects data from a large number of people by using a standardized set of questions (Jalil, 2013). The advantage of surveys is the quantified, reliable data on a wide range of issues; the disadvantage is the simplistic picture of the situation it provides by not uncovering perceptions of the project, sensitive issues or unanticipated benefits (Jalil, 2013). The survey conducted at the CPM was conducted with N=104 participants. Out of this 48 were male (n=48) and 53 were female (n=53). This survey quantified data concerning micro enterprises such as characteristics of the traders and their business and the vulnerabilities and constraints they were confronted with. It also concerned data on business strategies and the levels of access to capitals. Last, the data provided a better insight in the role of mobile technology by providing data on e.g. reasons of use, type of mobile technologies used and the way it helps overcoming constraints.

3.5.3 Semi- structured interviews

Qualitative semi- structured interviews were conducted with traders from the City Park Market (see chapter 4). The semi- structured interviews provided a better understanding of the livelihood strategies of vendors at the City Park Market, their access to the different types of capital, their business strategies and the way mobile technology was used to pursue these strategies. Although in advance open ended questions were set up to guide the interview, the

17 | P a g e semi-structured nature of the interview provided room for the participants to speak freely on other topics (Zorn, 2008). The indicators and questions outlined in the operationalization table were used as a base for the set- up of the open ended questions. By reflecting on the outcome of the surveys, further information on constraints faced by micro enterprises at the City Park Market, their business strategies and the specific use of Facebook and WhatsApp in pursuing these strategies were especially the point of focus because they were observed as being among the most prominent outcomes of the surveys.

3.5.4 Focus group research

A focus group research is an organized discussion with a selected group of individuals to gain insights on several perspectives and experiences on a certain topic (Gibbs, 1997). The

advantage of a focus group discussion compared to one-to-one interviews, is that attitudes, feelings and beliefs are more likely to be revealed in a gathering and during the interaction that takes place while being in a focus group (Gibbs, 1997). This research method was carried out during a table banking meeting in Banana, Kiambu County. As previously mentioned, the data of the focus group research has not been taken into consideration in the analysis and therefore, no further elaboration on this research method will follow.

3.5.5 Secondary data collection

Before leaving for Nairobi for data collection, secondary data collection took place by examining existing literature on the topic. Secondary data is data that is generated by other researchers and is made available for re use by the general research community (Hox & Boeije, 2005). The primary advantage of secondary data is that it already exists, which means that less time needs to be spend on doing research. Reducing costs and waste of data and likelihood of bias are also among the advantages of using secondary data (Sorensen et al., 1996). The disadvantage of secondary data collection is that the selection, quality and

methods of collection are not under control of the researcher. This could mean that validation of the research is difficult (Sorensen et al., 1996).

3.6 Data analysis

The starting point of the research were the observations and a test with conducting

questionnaires; the first aim of the research was to explore the existence of a digital gender gap but it quickly turned out that adoption rates of mobile technology for both men and women were high and that a digital gender gap was not existent. This guided the direction of the research towards exploring the supportive role of mobile technology in the development of micro enterprises rather than researching a digital gender gap. The questionnaires were therefore adapted towards this approach. The quantitative data collected through the

questionnaires were processed through SPSS. With the use of descriptive statistics, data such as characteristics, constraints, access to capitals, types of technologies and applications used and reasons of use were analysed which ultimately led to the profiles of the traders, their livelihood strategies and the role mobile technology plays in these strategies. The sub sample of n=110 is referred to as ‘N=’ as it comprised the main sample group for the descriptive statistics. However, some questions were not answered so some questions consisted of fewer

18 | P a g e respondents. To verify the data from both quantitative and qualitative methods, another round of analysis followed by making use of regression analysis. A multiple regression analysis is chosen for this second round of analysis because it can model the relationship between

variables by fitting a linear equation to the data. Within it, a group of variables are considered to be independent variables and one other variable to be the dependent variable. In advance, hypotheses were formulated and were tested with the help of the regression analysis. The result will be the accepting or rejecting of hypotheses described later.

3.7 Limitations & ethical considerations

When it comes to ethical considerations, harm of participants, lack of informed consent, invasion of privacy and avoidance of deception (Diener and Crandall, 1978), were kept in mind during the research. Each step in the data collection was conducted by informing the participants before conducting the questionnaires. The purpose of data collection was explained as a research for a final master’s graduation of the University of Amsterdam and not from the government or NGO as many participants initially assumed. It was also explained that the research was part of a wider project called ‘Feeding the City’ aimed at coping with the rapid urbanization rate of Nairobi and the challenge of feeding all of its citizens. It was also explained that the questionnaires were not job application forms or that the research was aimed at providing more financial capital for the market vendors as to make sure that wrong deceptions were avoided. Before conducting the questionnaires, participants were asked if they were willing to participate so that none of the participants would feel harmed or invaded in their privacy. Confidentiality of data was assured by not asking the names in the questionnaires and it was kept in mind that while doing research at a

marketplace, business operations continually take place so that the convenience of the participants was put in the first place during the data collection. Based on experience of locals, dressing style was adapted as well since in Kenya, women in general are expected to be more covered. In this way, participants wouldn’t feel harmed by the researcher.

The limitations of this research were in this case related to the selection of participants due to geographical location whereby the urban location meant that gender inequality rates were lower than in the case if the research would have been conducted in a rural area. This made the initial research on the digital gender gap very brief and another route was chosen. Furthermore, at the start of conducting the questionnaires many people were not willing to participate (Penn State University, 2006). This was especially the case with women, the focus group of this research.

On the market itself, it was sometimes hard to distinguish who owned which stall, making it hard to select the right participant (business owner as opposed to employee and gender of the business owner). Time constraints were playing a role by limiting the time participants could free for participating in the research due to the ongoing business activities at the market. Language barriers were an issue as well; although the main language used in Kenya is English and initially it was thought that language barriers would not exist it turned out to be

19 | P a g e different. After analysing the data of the questionnaires, I realized that my translator Liz, who asked the questions in Swahili, could derive more information from the participants than I could because of asking the questions in English. Since some questionnaires were conducted separately by Liz and me, this meant less interesting information from the questionnaires I conducted myself. Making use of a translator also meant that some interesting findings (such as market vendors farming products themselves), were therefore not further investigated and afterwards it was hard to find these specific participants back.

Before conducting the questionnaires it was expected that there would be more farmers at the market, but it turned out that this was not the case. However, as mentioned, between the participants there were some farmers but these participants were questioned by the translator. Potentially, some answers were biased because people would group around each other discussing the questions. Participants were subjective as they saw me as just another person doing research and thinking I would bring financial means. Furthermore, most answers given were quite simplistic and short, this could be due to the aforementioned language barriers but in my opinion, most people just did not have very inventive ways of doing business and lacked business ideas (Mbithi, 2015). This might have limited the research by being objective due to selective hearing that did not conform pre-existing beliefs which is a disadvantage of face to face surveys (Jalil, 2013).

The validity of surveys possibly was also harmed. During the collection and after analysing the data, it was observed that sometimes people did not understand the questions or

interpreted them in a different way (Penn State University, 2006). This could be either due to illiteracy but also do to simply not understanding. Sometimes they did not understand the concept of mobile applications.

Furthermore, distance and financial means played a role as well. Being based in Nairobi, it was not feasible to go to markets far from the city centre since the traffic is very jammed which raised time constraints and the cost of going there in a, for my feeling, safe way was high. The short time of the stay in Nairobi also raised time constraints on how much data could be collected. Back in the Netherlands, the short time available to wrap up the research was a major constraint as well.

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Chapter 4: The City Park Market in Nairobi

This chapter gives an introduction to the City Park Market to get a better picture of where the market is located and what type of market is dealt with. It will also portray the traders owning the micro enterprises at the market by given a short description of the characteristics of the traders. The chapter will finish by outlining the rules and regulations that are in place at the CPM.

4.1 City Park Market- Overview

The City Park Market is located at Limuru road in Parklands, Nairobi. See figure 2 below.

Figure 2: Location of CPM Nairobi

Source: Google maps (2016)

The CPM is one of the council markets of Nairobi which means that it is a formal market with registered businesses (Irungu et al., 2007). There are over 3000 traders operating on the market and many of them are already there for over 10 years (Muraya, 2015). The market is opened daily with businesses at the CPM operating continually during the day (Irungu et al., 2007). The products sold at the market are fruit and vegetables but there is also one butcher and some small food corners selling nyama choma.

On the 5th of February 2015, the City Park Market burnt down and the market is currently located in what used to be the parking lot of the former market (Muraya, 2015). A new

21 | P a g e market is under construction and once finished, it will be the largest retail market in the country (Otieno, 2015). To register traders, it will make use of the E-jijipay system to make payments directly to the Nairobi city county (Otieno, 2015).

The City Park Market- roads

Figure 3: Roads one

Figure 4: Roads two

22 | P a g e The City Park Market- market stalls

Figure 6: Stalls one

Figure 6 & 7: Stalls two and three 4.2 City Park Market- Traders

This section will give a description of the characteristics of the CPM traders that have participated in the surveys. The description is based on data conducted through a survey as explained in section 3.5.2 and analyzed with the use of descriptives in SPSS. The description concerns the following variables: gender, age by gender. The sample size for the surveys was 104 traders (N=104).

The first variable to be considered is gender; out of the sample size, 48 participants (N=48) were male and 53 (N=53) participants were female. There is a high rate of women

participating in trading at the CPM, which according to the theory in section 2.2, is a result of the fact that the MSE sector has become an important employer of the female labor force in Kenya (Nyang’ori, 2010) because among other things, it does not require a lot of starting capital (Nabintu, 2013).

23 | P a g e Age by gender was the second variable that was considered and table 1 below shows the distribution of respondents by age and gender.

Table 1: Age by Gender

The table shows that within the age class of 25-35 years old, 21 males were counted and 16 females. Within the age class of 35-45 years old, 10 males were counted and 16 females. Female traders fall mainly in the 25-45-55 age range whereas male traders fall mainly in the 15-35-45 age range. It seems that female traders continue to work as a trader at an older age which could be explained by the fact that female led businesses fail to grow bigger and fail to fully develop itself (Manfre, n.d.; Lock & Smith, 2015; Munya & Mureithi, 2008; Bulla, 2012; ILO, 2008) causing women to remain working as a trader in a micro enterprise to a higher age. The table also seems to show that male traders start trading at a younger age. This could be explained by previous findings showing that young men are more likely to be self-employed than young women (Woldie, 2008; Fatoki & Chindoga, 2011) and that socio-cultural constraints affect the participation rate of young women in MSE’s (Fatoki & Chindoga, 2011).

4.3 City Park Market- rules and regulations

The formal nature of the CPM means that operating at the CPM comes with requirements. The businesses at the CPM fall within the wholesale & retail trade businesses, so a single business permit and a trade license are needed to be able to operate on the market (Mbithi & Mainga, 2006). Without it, businesses cannot take advantage of government incentives and formal financial services (Mbithi & Mainga, 2006). When it comes to eligibility of micro-finances schemes such as SACCOS and NGO’s for example, traders need a certificate of incorporation, a certificate of registration of business name and a trade license (Mbithi & Mainga, 2006).

Once a trader owns a permit, it can be transferred by the holder to another person by

informing the council and with the payment of a fee. Permits need to be renewed before the 31st of March of every trading year (Nairobi city Council, 2016). According to the city Bylaws, only under certain conditions one can receive a trade licence. Businesses need permission from the Council to do business and will not be issued when business is carried out in a building where land and ground rent are owning and permit fees need to be paid (Nairobi city Council, 2016). Taxes and charges need to be paid as well; land for overhead, underground and ground level services are taxed and charged (such as telephone lines) (Nairobi city Council, 2016). The license can only be used at the market for which the license is issued meaning that it is prohibited to use it for trading at another market (National council

Gender

Age Male Female

Absolute % Absolute % 15-25 11 22.9 5 9.4 25-35 21 43.8 16 30.2 35-45 10 20.8 16 30.2 45-55 4 8.3 11 20.8 55-65 1 2.1 5 9.4