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The law-growth nexus - Phase III: Labour law and the enabling business environment for MSMEs in Kenya - Final Evaluation

eval_number:

2639

eval_url:

https://webapps.ilo.org/ievaldiscovery/eval/2639

lessons_learned:

themes:

theme:

Labour legislation

category:

International Labour Standards

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comments:

Proposal developers and project designers; Donors interested in promoting enterprise development; Project managers responsible for enterprise development initiatives; national stakeholders mandated to promote the informal MSME sector

challenges:

The concept/strategy for achieving enterprise growth was appropriate, however, changing the perception of MSME’s in the informal sector on the benefits of compliance to labour laws is one that requires time and therefore the greater result or impact of the initiatives may only be seen years after the completion of the project. Measuring a mind-set change and its impact is difficult within a few years.

success:

The linkages and interconnectedness between the three market system levels have been made clear between the micro-level, the policy, legal and regulatory framework (PLRF), the macro level and the implicit norms, values and perceptions held by system constituents towards the notion of compliance with these rules of engagement (meta-level).

context:

The project design was based on a market systems development framework that treats sectors as a system made up of entities that purposefully interact to generate economic benefits. The facilitative components are: supportive legal and regulatory framework, changing attitudes towards labour law compliance, social dialogue between employers and workers, and improved business management skills. The positive results of the project re-affirm and demonstrate that these linkages exist and that the improvement of one ( i.e. compliance to labour laws) in fact does contribute positively in terms of productivity and growth of the MSME.

description:

Compliance with labour laws by MSMEs contributes to increases in productivity and enterprise growth.

administrative_issues:

The market systems development approach (in its design and implementation) is one that has yielded positive results and can/should be applied in other projects aimed at promoting enterprise development. However, the lesson learned includes the need to anticipate/expect that changes in perception/mindset and its impact may not be completely measureable in the lifespan of the project.

url:

https://webapps.ilo.org/ievaldiscovery/lessons/223450

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location:

country:

Kenya

region:

Africa

---

eval_title:

The law-growth nexus - Phase III: Labour law and the enabling business environment for MSMEs in Kenya - Final Evaluation