Complementary currencies and entrepreneurship: sustaining micro-entrepreneurs in Kenyan informal settlements

Kuk, G ORCID: https://orcid.org/0000-0002-1288-3635, Meyer, C and Giamporcaro, S ORCID: https://orcid.org/0000-0002-1150-4939, 2023. Complementary currencies and entrepreneurship: sustaining micro-entrepreneurs in Kenyan informal settlements. Strategic Entrepreneurship Journal. ISSN 1932-4391

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Abstract

Research Summary: With over a billion people inhabiting in informal settlements worldwide, micro-entrepreneurs are vital to local economies. Complementary currencies have emerged as tools to sustain these entrepreneurs, providing alternative trading and payment options. This study explores the daily strategies of micro-entrepreneurs in Kenyan informal settlements using the digital complementary currency Sarafu. Our findings reveal that complementary currencies act as external enablers, transforming the local economies by enhancing payment systems, influencing supply and demand, and altering pricing structures. Significantly, when integrated with savings groups, they provide financial inclusion and collective purpose, strengthening local business networks. This research enriches our understanding of the mechanisms micro-entrepreneurs deploy to leverage complementary currencies for growth, underscoring the need for further exploration into the role of complementary currencies in supporting entrepreneurship.

Managerial Summary: This study explores how a complementary currency called Sarafu benefits micro-entrepreneurs in Kenyan informal settlements. Sarafu acts as catalysts for entrepreneurship by boosting local markets and empowering community cooperation. Our findings reveal that micro-entrepreneurs use Sarafu to adapt to the unique challenges of informal economies. They employ smart strategies like flexible pricing and inventory management to keep Sarafu flowing smoothly. Sarafu serves a dual purpose: a means of immediate spending and a tool for saving and growing capital. It also strengthens local business networks and creates a sense of collective purpose. For practitioners, this study suggests using complementary currencies to support local business networks, promote collective savings, and align the issuance of complementary currencies with local assets to foster sustainable entrepreneurship in informal economies.

Item Type:	Journal article
Publication Title:	Strategic Entrepreneurship Journal
Creators:	Kuk, G., Meyer, C. and Giamporcaro, S.
Publisher:	Wiley
Date:	31 October 2023
ISSN:	1932-4391
Identifiers:	Number Type 10.1002/sej.1484 DOI 1818151 Other
Divisions:	Schools > Nottingham Business School
Record created by:	Jeremy Silvester
Date Added:	11 Oct 2023 11:01
Last Modified:	03 Nov 2023 16:52
URI:	https://irep.ntu.ac.uk/id/eprint/49957

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