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11/6/2009
Law Through Global Eyes Lecture Series-Improving the Business Climate Under the Hot Sun: Do Small Business Associations Make a Difference? (A Case Study of Western Kenya)
William H. Gates Hall
119
12:30 PM - 1:30 PM
Elin Cohen
Stanford University Law School
Elin Cohen is a J.S.D candidate at Stanford Law School. As a Fulbright-Hays scholar, she conducted field work in western Kenya from May-December 2007. Before she came to Stanford, she completed a L.L.M at University of Washington and a L.L.M from Stockholm University (Sweden). In addition, she has worked for the Swedish International Development and Cooperation Agency (SIDA) in Kenya and has studied international law in France.
Small businesses offer a major source of employment opportunities in Sub-Saharan Africa. However, most micro and small enterprises on the continent do not expand but remain small. The inability of smaller businesses to grow into medium size businesses is perceived as an obstacle for economic growth. It has therefore been widely recognized that governments need to create an enabling business environment which provides opportunities and incentives for enterprises to invest and grow. This research project explores whether non-state actors- in form of small business associations could take actions which improved their members’ business environment. Based upon both qualitative and quantitative field work from western Kenya, this presentation will discuss the potential benefits small business associations could have and what it is that small business associations in western Kenya actually do. By situating the formation of business associations in Kenya’s political economy, this talk will provide an explanation for why some associations are providing their members with certain services (such as mediation and reduced business licenses fees) that are otherwise not available or only available to a higher cost, while other associations are not providing such services. Tentative results will also be presented to explore whether enterprises that belong to a business association are, in any measurable way, better off than non-members. This research project provides insight into whether the support of business associations is a viable development strategy and outlines directions for future research.