Influence of Microfinance Services on the Growth of Small and Micro Business Enterprises in South Gucha Sub County, Kisii County

Mutunga, Nancy Ndanu (2015) Influence of Microfinance Services on the Growth of Small and Micro Business Enterprises in South Gucha Sub County, Kisii County. Masters thesis, University of Nairobi.

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Abstract

This study sought to investigate the influence of microfinance products on the growth of small and medium enterprises in South Gucha Sub County, Kisii County, Kenya. It was guided by the objectives: to investigate the influence of credit facilities, training of entrepreneurs, savings and conditions of service on the growth of small and medium enterprises in South Gucha Sub County. This study was grounded on the basic assumptions that respondents would be willing to give information objectively, sample drawn being representative of the target population and that the data collection instruments would be valid and reliable. On research methodology, a descriptive survey research design was adopted, targeting a population of 1200 entrepreneurs upon which a sample size equivalent of 10% of the target population was drawn (120). Stratified sample selection technique was used in which the population was stratified on the basis of distinctive business categories. Data was collected using questionnaire, whose validity and reliability were ascertained. Instruments validity was assured through adequate coverage of the research objectives; peer review and experts‟ judgement, while reliability was ascertained using split halve reliability method. Descriptive statistics in the form of frequencies and percentages were used in data analysis. The study revealed that credit was not easily available to the SME entrepreneurs in South Gucha Sub County and when available the amount of credit required was rarely obtained. But among those who obtained requisite amounts of credit, business growth was found to be enhanced. Moreover, lending conditions instituted by most micro finance institutions for the SMEs were found to be a major challenge and therefore adversely affected the business growth. Aspects of training provided to the SMEs were found to have significant influence on business growth, such that, with higher and relevant skills acquisition, enterprises grow than when levels of training are low. The study recommends that the ministry of trade should develop policies that are favorable to initiation of small and medium enterprises in the country for purposes of engaging the youths in economic development. Besides, the government, through the ministry of education should formulate policies that strengthen the study of the entrepreneurship and small business management in schools at all levels, so that whoever stopped schooling, would have acquired sufficient knowledge in business and the government should formulate policies that encourage the youths to engage in entrepreneurship such as increasing the allocation for the youth enterprise funds, women enterprise funds and Uwezo funds to enable them access soft loans, as well as the banking sector instituting policy changes that make credit facilities within reach of the small business entrepreneurs to access funds for investment in order to register growth of these ventures.

Item Type:	Thesis (Masters)
Subjects:	H Social Sciences > HN Social history and conditions. Social problems. Social reform H Social Sciences > HT Communities. Classes. Races
Divisions:	Africana
Depositing User:	Mr Jude Abhulimen
Date Deposited:	22 Dec 2016 08:34
Last Modified:	22 Dec 2016 08:34
URI:	http://thesisbank.jhia.ac.ke/id/eprint/1086

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