Moderating Effect of Entrepreneurship Determinants on the Relationship between Economic Diversification and Sustainable Livelihoods among Fish Farmers in Kakamega County

Abstract

This study investigates the effect of entrepreneurship determinants on economic diversification and sustainable livelihoods among fish farmers in Kakamega County, Kenya. Entrepreneurship determinants encompass a range of factors including access to finance, training, market information, infrastructure, and supportive institutional frameworks. Economic diversification is vital for reducing reliance on traditional income sources and enhancing resilience to economic shocks, while sustainable livelihoods ensure long-term prosperity while preserving natural resources. The specific objective was to examine the moderating effect of entrepreneurship determinants on the relationship between economic diversification and sustainable livelihoods among fish farmers in Kakamega County. The study was guided by Sustainable Livelihoods Theory. The target population was 4500 fish farmers in Kakamega County from which a sample of 354 fish farmers was selected for the study using the Krejcie and Morgan Table 1970. Data was collected using closed-ended questionnaires. Data collected was analyzed using SPSS version 26. Using descriptive and survey research designs, data was collected from a sample of fish farmers in Kakamega County. The findings reveal significant correlations between entrepreneurship determinants, economic diversification, and sustainable livelihoods. Economic Activity Diversification explained 50.8% changes on sustainable livelihoods. However, when moderated with entrepreneurial determinants, the influence of economic diversification explained 66.3% of the changes in sustainable livelihoods among the fish farmers in Kakamega County. The analysis utilized unstandardized coefficients to elucidate the relationships between variables. In Model 1, Vertical Diversification (B = 0.271, p = 0.000) and Portfolio Diversification (B = 0.488, p = 0.000) significantly influenced Sustainable Livelihoods, while Structural Diversification (B = -0.044, p = 0.493) did not. Model 2 introduced Entrepreneurial Determinant, which exhibited a significant positive effect (B = 0.356, p = 0.000), alongside Vertical (B = 0.111, p = 0.041) and Portfolio (B = 0.329, p = 0.000) Diversifications. In Model 3, while all diversification variables remained significant, the interaction terms showed significant impact, emphasizing the moderating role of entrepreneurial determinants in influencing sustainable livelihoods among fish farmers in Kakamega County. Access to finance and market information emerged as key determinants influencing the ability of fish farmers to diversify their economic activities and achieve sustainable livelihoods. Additionally, supportive institutional frameworks, infrastructure development and access to training were identified as critical enablers of entrepreneurial success among fish farmers. The study concludes by highlighting policy implications and recommendations aimed at enhancing entrepreneurship development, promoting economic diversification, and fostering sustainable livelihoods among fish farmers in Kakamega County and similar contexts.