THE EFFECT OF PRODUCT DIVERSIFICATION STRATEGY ON ECONOMIC EMPOWERMENT OF WOMEN ENTERPRISES IN SIAYA COUNTY, KENYA

Abstract

This study examined the effect of product diversification strategy on economic empowerment of women enterprises in Siaya County, Kenya., the study examined how providing a diversified range of financial products, including microloans, micro savings, and microinsurance, can be used to enhance the economic growth of women. The study was anchored on feminist empowerment theory and financial intermediation theory. The study adopted descriptive cross-sectional study design and obtained data from 105 respondents (5 MFIs branch managers and 100 women entrepreneurs) using structured questionnaires. The study revealed that diversification of products has a statistically significant positive effect on the economic empowerment of women ((β = 0.52 and p < 0.05). Women having access to a variety of various products reported improved business resilience, increased incomes, and increased levels of financial autonomy. The study concludes that expanding financial product offerings to meet the needs of women increases income, enhances financial inclusion and boosts their capacity to grow businesses. The study recommends that microfinance institutions in rural counties to innovate and tailor their financial products to serve women entrepreneurs better. These findings contribute to policy and academic discourse by highlighting the supremacy of diversification of financial products in the achievement of Sustainable Development Goal(SDG) 5 on gender equality and 8 on economic development.