Browsing by Author "Karanja, Johnson Muguro"

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    Access to Credit and Firm Performance: Evidence from Micro and Small Enterprises in Murang’a County, Kenya
    (Journal of Business and Management Sciences, 2025-07) Karanja, Johnson Muguro; Muathe, Stephen Makau A.
    Report on the Kenya National Human Development [1] showed that among the challenges still facing MSEs in Kenya is lack of access to credit due to financial institutions requiring collateral as well as inadequate entrepreneurial skills. Despite the provision of affordable credit through the funds, micro and small enterprises in Murang’a County that has continued to record poor performance, which begs the question of the effectiveness of the various efforts and their contribution to improved performance of the MSEs. The study focused on collateral requirement, credit assessment, credit information sharing and cost of credit and their implication on performance of micro and small enterprises in Murang’a County, Kenya. The study was anchored on the resource-based view, dynamic capability theory, pecking order theory, entrepreneurship theory of Shane, innovation of entrepreneurship theory as well as the traits theory. The study adopted a descriptive research design where 1,020 registered SMEs in Murang’a County were targeted, of which 287 were selected through a stratified and random sampling techniques. A questionnaire was used to collect primary data which was later analyzed through means and standard deviations as well as multiple regression analysis and presented through tables and figures. The study established that collateral requirements (β=.420, p