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

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 (R2=0.771, F=129.39, P<0.05). In model two (R2=.992, F=108.136, P<0.05) was strong and significant and in model three (R2=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