CONTRIBUTION OF INDIGENOUS ENTREPRENEURSHIP AMONG MICRO AND SMALL LIVESTOCK ENTERPRISES TO ECONOMIC DEVELOPMENT: THE MODERATING EFFECT OF GLOBALIZATION DYNAMICS IN TURKANA COUNTY, KENYA

  • King’ong’o G W
  • Ogutu M
  • Nyandemo S M

Abstract

Entrepreneurship is vital for enterprise growth and economic development. There lacks
clear empirical evidence of whether entrepreneurship drives economic growth,
productivity or employment. The Turkana practice subsistence pastoralism, land is
communally owned where individual ownership is in-existence and not recommended.
The main objective of the study was to establish the moderating effect of globalization
dynamics on the contribution of indigenous entrepreneurship among micro and small
livestock enterprises to economic development in Turkana County. The study is
anchored on effectuation and institutional theories. Positivist paradigm was adopted
and descriptive cross-sectional research design. A list comprising of 598 livestock
enterprises was availed from the County Livestock Marketing Council, to get a sample
size of 339 Micro and Small Enterprises (MSEs). Primary and secondary data was
collected for analysis. Descriptive and inferential statistical methods were used to
analyze data. From the results, globalization dynamics was found to have a significant
moderating effect on the relationship between indigenous entrepreneurship and
economic development. In model one the result shows that the association between
indigenous entrepreneurship and economic development was moderate and significant
(R
2
=0.771, F=129.39, P<0.05). In model two (R
2
=.992, F=108.136, P<0.05) was strong
and significant and in model three (R
2
=0.993, F=98.13, P<0.05) was strong and
significant at 5% level, suggesting presence of a moderating effect in model three after
an interaction term was introduced. The study concluded that globalization dynamics
significantly contribute to the relationship between indigenous entrepreneurship and
economic development. An inverse relationship was revealed in the relationship
between indigenous entrepreneurship and economic development after the introduction
of globalization dynamics. Thus, the study supports institutional theory which
ultimately argues that formal institutional structures are necessary for venture creation.
Indigenous entrepreneurship in presence of globalization dynamics is a difficult
undertaking prompting to effectuation processes. This study should aid both the
national and county governments in the legislation of laws and policies which support
micro and small livestock enterprises in Turkana County, for instance, creation of a
suitable environment for these businesses to obtain credit and recommending suitable

and efficient trading activities. The study suggests that there is need for management in
these micro and small livestock enterprises in Turkana County to consider saving with
the financial institutions in order to secure larger loans to inject and boost their
businesses. The study suggests for the county government of Turkana to refocus on the
decentralization policy perhaps integrate with indigenous entrepreneurship so that it
can induce economic activity from outside business players. The national and County
governments should work to reduce environmental uncertainty, promote indigenous
entrepreneurs encouraging their participation in the global economy, attracting private
sector development, foreign direct investment, increased exports, spurring economic
development through investing in education and health. This study should be replicated
in among micro and small livestock enterprises operating in Counties outside Turkana
such as Samburu or Marsabit which exhibit similar operational characteristics to
establish if similar findings could be achieved.

Key Words: Indigenous entrepreneurship, globalization dynamics, micro and small livestock
enterprises, economic development

Published
2022-06-08