An investigation on the factors affecting financing micro and small enterprises by micro finance institutions in Kenya.a case of micro and small enterprises in Murang'a town
Njau, James Mwangi
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The MSEs sector in Kenya plays an important role in the social- economic development of the country. Its significance can be seen in terms of contribution towards economic growth, employment creation, poverty eradication and development of an industrial base. However, despite the critical role played by the sector, its faced with many challenges and constraints that include unfavorable policy environment and regulatory framework, limited access to financial services and markets, inadequate skills and technology and gender inequality among others. The objective of the study will be to investigate Microfinance factors affecting the performance of MSEs financed by microfinance institutions in Kenya, with a special reference to MSEs in Murang'a Town in Murang'a County. Specifically, the research aims to attain the following objectives; find out whether business training affects performance of Micro and Small Enterprises, examine whether microfinance credit cost affects the performance of Micro and Small Enterprises, establish whether the microsaving and microinsurance products offered by rnicrofinance institutions affect performance of Micro and Small Enterprises and finally, assess whether loan lending methods affects performance of Micro Small Enterprises. The study is intended to be of help to individual entrepreneurs, microfinance institutions, potential investor's government, as well as researchers. Literature review includes theories on MSEs development, microfinance revolution, general empirical review on Microfinance and MSEs performance and Microfinance factors affecting MSEs performance. The study will use stratified random sampling and then apply the simple random sampling to select strata. 60 respondents will be involved in the study. Data will be gathered using questionnaires. The researcher will administer the questionnaire to responds assisted by hired personnel. The data will be analyzed using statistical package for social and sciences (SPSS). It will then be presented in tables, graphs, pie-charts and cross tabulations. Based on the findings, data and descriptive statistics will be provided as well as conclusions of the findings and recommendations.