Effect of Socio-Cultural Environment On the Performance of Women-Owned SMEs in Nairobi City County, Kenya
Keywords:
Socio-cultural environment, women-owned SMEs, SME performance, gender norms, Nairobi City County, Balanced ScorecardAbstract
effect of the socio-cultural environment on the performance of women-owned SMEs in Nairobi City County, Kenya. Specifically, it investigated how cultural beliefs, gender norms, religious influences, societal attitudes, and community support systems shape business performance measured through the Balanced Scorecard framework.
methodology: A descriptive research design was adopted, targeting 21,000 formally registered women-owned SMEs. Using Taro Yamane's formula, a sample of 385 enterprises was selected through proportionate stratified random sampling. Structured questionnaires collected primary data, yielding a 90.9% response rate (n=350). Descriptive statistics and Ordinary Least Squares regression via SPSS version 23 were employed for quantitative analysis.
findings: Socio-cultural factors collectively exerted a strong effect on SME performance (aggregate M=4.09). Gender norms recorded the highest influence (M=4.52, SD=0.629), followed by religious influence (M=4.11) and cultural beliefs (M=4.08). SME performance was moderate (aggregate M=3.28), with internal business processes rated highest (M=3.57) and financial performance lowest (M=3.06). Regression analysis confirmed that the socio-cultural environment was a significant positive predictor of performance (β=0.391, t=3.939, p<0.001), explaining 26.2% of variance (R²=0.262). The null hypothesis was rejected, confirming that enabling socio-cultural conditions, including positive community networks and supportive attitudes, improve women-owned enterprise outcomes.
conclusion: The socio-cultural environment significantly determines performance of women-owned SMEs in Nairobi City County. Gender norms exert the strongest influence. Addressing socio-cultural barriers through gender-responsive policies, structured mentorship programmes, and engagement of religious and community leaders as empowerment advocates would meaningfully improve business performance outcomes for women entrepreneurs.
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