This paper explores the impact of micro-level institutions on enterprise performance by
applying descriptive and econometric analysis on data extracted from a baseline survey of
micro and small-scale enterprises in Kenya. The results show that female ownership,
informality and sole proprietorship have negative effects on enterprise productivity. Such
productivity, however, increases with the entrepreneurs' age, educational achievement and
membership in business support groups. Rural-based enterprises and those that are
irregularly operated are less productive than those that are urban based and regularly
operated. Traders do not produce as much as entrepreneurs involved in other business
activities and productivity generally increases with the age of an enterprise. Policy will need
to redress gender imbalances and seek to mainstream informal enterprises. Intervention that
improve the environment for rural commerce and increase the educational status of the
general population would promote enterprise productivity as would interventions for
increasing the life expectancy of enterprises.