Non-government organization interventions on performance of refugee led small and medium enterprises in northern Kenya

Abstract

The significant obstacle for SMEs in Northern Kenya is the absence of collateral or credit record, which makes it difficult for refugees to obtain capital. Navigating the legal and bureaucratic landscape is particularly challenging for refugees, that may not be familiar with local laws and regulations governing business operations. Competing with established local businesses is difficult especially in areas where market dynamics are already saturated. This is coupled with refugees facing discrimination or bias that can hinder their ability to attract customers. This prompted a study on the effect of nongovernment organization interventions on performance of refugee led small and medium enterprises in Northern. This research is significance to policy, significance to practice, significance to theory and significant to other researchers. The study was anchored to Market Orientation Theory with other supporting theories. This research sought to use Correlation research design. Targeted respondents were obtained from business entrepreneurs in Kakuma and Dadaab Camps. There were 1102 business entities run as sole proprietors or joint companies. From these, a unit of observation was 1102 businesses and unit of analysis was individual business proprietors. The sampling frame of the study consisted of grocery stores, food stalls, restaurants/cafes, and M-Pesa kiosks both at Kakuma and Dadaab refugee camps. The research employed a stratified random sampling technique. The study's sample size was 10% of target population giving 110 as sample size. Questionnaires with predetermined formats were used to assist in the collection of primary data. For the purpose of this investigation, questionnaires were utilized, in addition to being validated by validity and reliability testing. For reliability test, a Cronbach alpha value exceeding 0.7 was considered to exhibit strong internal consistency. The data was analyzed by adopting quantitative techniques such as descriptive analysis and inferential analysis. For descriptive, output such as mean, standard deviation, was derived. For inferential analysis, correlation analysis and regression analysis was adopted. Findings were therefore, presented by use of tables. From the findings, the study established that market orientation is positively correlated with performance (r = .509, p < .01), suggesting that the more refugee SMEs adopt market-oriented interventions, the better their performance. Microfinance services also show a positive correlation with performance (r = .535, p < .01), meaning that access to financial support enhances growth and sustainability. Networking opportunities are positively related to performance (r = .518, p < .01), highlighting the role of collaborative linkages in improving business outcomes. Capacity building for fundraising has the strongest positive relationship with performance (r = .572, p < .01), implying that when refugee entrepreneurs are equipped with financial mobilization skills. The study recommends that policymakers and NGOs design context-specific interventions to strengthen refugee-led SMEs in Northern Kenya. Flexible market orientation programs, supported by affordable financing, simplified registration, and partnerships with host communities, would enhance competitiveness and resilience. Inclusive microfinance models with lower interest rates, blended capital, and integrated financial literacy training can expand access to sustainable financing. Networking opportunities should move beyond NGO-managed forums to empower entrepreneurs to engage in regional trade, digital markets, and independent partnership building. Finally, capacity building should be linked with direct funding through micro-grants, low-interest credit, and hybrid support models with financial institutions and donors, ensuring that training translate into measurable business outcomes.