Climate change adaptation among female-led micro, small and medium enterprises in semi-arid areas: a case study from Kenya
This research explores how female-led micro, small and medium enterprises (MSMEs) in semi-arid lands experience and respond to climate risk. MSMEs account for about 80% of employment in developing countries, are highly vulnerable to climate change and are limited in their capacity to adapt.
Female entrepreneurs can be key in promoting resilience at micro (e.g. household) and macro scales but how they experience or adapt to climate risks has been little researched. This paper addresses that gap with a case study of how female-owned MSMEs experience climate risk in the semi-arid county of Narok in Kenya’s Rift Valley. Findings suggest female-led MSMEs in Narok may face both additional exposure to climate risk compared with men, and additional barriers to adapting to that risk.
Key points for decision-makers
- The research found that strong social and cultural norms around gender roles, and resource use and access, confine female-led MSMEs to sectors that experience higher exposure to climate risk – most notably agriculture.
- These norms also create pronounced barriers to women coping with climate risks and building business resilience, including reduced access to land, capital, markets, new technology and educational opportunities compared with men.
- The research identified examples of female entrepreneurs pursuing unsustainable forms of coping that may help in the short term but which reduce their capacity to adapt to climate change in the longer term.
- Coping strategies include selling business assets, e.g. reducing stock at times of water scarcity; diversification, e.g. into the charcoal business, which weakens long-term resilience by exposing agricultural land to erosion; and land sales, which are usually carried out by men, with female-led MSMEs usually not receiving any direct benefit.
- Adaptation tools appear to include social networks such as women’s groups and table banking initiatives, through which groups of women save, rotate funds and lend money. However, these funds appear unlikely to be adequate to protect MSMEs from the impacts of climate extremes.
- Female entrepreneurs in this research suggested a strong dependency between household resilience and business resilience. Therefore building women’s resilience at the household level is likely to serve as a key route to enabling private sector adaptation among female-led MSMEs.
- The research also finds that while Kenya recognises the need to support female entrepreneurs in various national policies (including in national climate change legislation), these policies are currently poorly implemented.
- The research consisted of a literature review plus focus group discussions and interviews with 17 female entrepreneurs, most of whom work in agriculture, and a workshop with other stakeholders including government and NGOs.
Grantham Research Institute Working Paper series ISSN: 2515-5717 (online)
CCCEP Working Paper series ISSN: 2515-5709 (online)