Economic Factors and the Growth of Apparel Micro-Enterprises in Nakuru Town, Kenya

Abstract

Nakuru town, Kenya, boasts a burgeoning apparel industry with significant potential for economic advancement and job creation. However, this sector faces numerous challenges that hinder its growth and development. The study investigated the effects of economic factors on the growth of apparel micro- enterprises in Nakuru town, Kenya. This study adopted a descriptive cross-sectional research design and targeted 329 employees in 47 micro-enterprises based in Industrial area in Nakuru town. The study used Yamane's (1967) formula to determine the sample size where 181 respondents were involved in the study. Simple random, stratified and systematic sampling techniques were used. Both quantitative and qualitative data was collected using questionnaires. Data was collected through drop and later pick method and was analyzed with the aid of Statistical Package for Social Sciences software version 25. Both descriptive (frequencies, percentages, means and standard deviation) and inferential statistics (multiple regression) were carried out. Data was presented using graphs and tables. Results showed that 59.6% of the respondents were male while 40.4% were female, majority (34.0%) were aged 41–50 years, 35.9% were in women apparel business, 37.8% were sole proprietors while 40.4% were in business operation for more than 6 years. Descriptive statistics showed that respondents agreed that economic factors (Mean - 3.97) affected the growth of apparel micro-enterprises in Nakuru town, Kenya. Inferential statistics showed that economic factors (β = 0.669, p = 0.000) had a positive and significant effect the growth of apparel micro-enterprises in Nakuru town, Kenya. The study concludes that economic pressures, including low incomes and inflation, hinder apparel micro-enterprises’ growth by raising costs and limiting demand. Limited financing constrains expansion. The study recommends tax simplification, political stability, improved access to credit, infrastructure investment, and capacity-building programs to enhance resilience, competitiveness, and sustainable growth in the apparel micro-enterprise sector.