A Phenomenological Examination of Owner's Experiences of Microbusiness Failure in Rural Kenya

The high rate of microbusiness failure has been at least partly attributed to increased poverty levels and worsening economic situation in Kenya in the last 5 years; however, the causes of such failures remain unclear. Based on Fiedlers's theory of strategic contingency, the purpose of this qualitative phenomenological study was to explore the perceptions of microbusiness owners' regarding microbusiness failure phenomenon. The research question involved identifying what microbusiness owners in Taveta, Kenya, perceived to be the causes of microbusiness failure there. Eleven participants completed interviews and described their personal experiences with microbusiness failure. Data analysis was performed using a modified van Kaam approach, where expressions from the interview transcripts were developed into themes that identified the causes of microbusiness failure. The emerging themes included lack of strategic planning and leadership skills, poor infrastructure and marketing, corruption, harsh environmental conditions, competition, tribalism, rural-urban migration, bad business location, and inconsistent pricing of consumer goods. The findings could be used as a basis for business management and development that can offer local entrepreneurs sources of information regarding the causes of microbusiness failure and ways to prevent future failures. Implications for social change include implementing strategies that may help to prevent or reduce microbusiness failure. This can result in training current and future microbusiness owners on ways to sustain their businesses and avoid future failures, leading to reduced poverty levels and improved quality of life.