Networks, Micro Small Enterprises (MSE’S) and Performance: the Case of Kenya

Abstract

This paper examines the role of informal personal networks in determiningMicro Small Enterprises (MSE’s) success in Kenya. It adopts the networkperspective theoretical approach. Empirically, the paper finds that MSE’s inKenya get around market failures and lack of formal institutions throughentrepreneurial personal network as a copying strategy in the process of globaltransformation to bridge the entrepreneurial global divide. General hypothesispredicting the ‘likelihood of MSE’s with better network performing better’ issupported by performance models though pro-poor growth is evident with anaverage business performance. Network strategies to promote small enterprises are recommended to policy makers, donors and actors in the field against those of the failed traditional strategies. However, there are few empirical studies available in this area particularly in less developed countries; therefore further research is necessary in this direction.

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