RP-Accounting and Finance Department

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Browsing RP-Accounting and Finance Department by Subject "Access to Credit"

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    Access of Credit and Financial Performance in Small and Micro Enterprises: Evidence of Enterprise Development Funds Strategies Used in Kenya
    (IJLRHSS, 2021) Kemei, Joseph Kipngeno; Warui, Fredrick
    Small and Micro Enterprises (SMEs) has encountered myriads of challenges especially at early establishments. This has affected the financial performance of youth SMEs and some leading to closure. Despite the effort by government in Kenya for youth enterprise development funds their success rate is still very low. To address this issues the main objective of the paper is to establish the effect of access to credit strategy on financial performance of SMEs in Kericho County. Financial intermediation theory was utilized in the study. The study utilized a descriptive survey design where information was retrieved from SMEs in Kericho County who had access to YEDF and Uwezo funds. It targeted a population of 236 comprising of 144 employees in YEDF and 92 employees in Uwezo funded SMEs where a sample of 148 respondents were selected using stratified sampling method. Questionnaires were used in as data collection tools. The study conducted descriptive statistics where mean and standard deviation were adopted. ANOVA analysis was used to examine the relationship between the variables. The finding revealed access of credit had significant influence on financial performance. Where there was flexibility in access to loans as well as low requirement in accessing finance. It also showed that group loans strategy assisted significantly the growth of SMEs. The study recommended training and exhibition of SME products to create knowledge and market respectively for proper utilization of loan accessed.
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    Effect of Access to Credit and Financial Services on Poverty Reduction in Central Region of Ghana
    (Center for Promoting Ideas, USA, 2017-08) Ampah, Samuel Nathaniel; Jagongo, A. O.; Omagwa, Job O.; Frimpong, Siaw
    The study sought to determine the effect of access to credit and financial services on poverty reduction in Central Region of Ghana from the perspectives of Micro, Small and Medium Enterprises (MSME’s). Micro, Small and Medium Enterprises contribute significantly to the economic growth and poverty reduction strategies of most countries. The importance of the MSME’s have long been recognized in many countries across the globe. However, lack of access to credit and financial services has been identified by several studies as the main obstacle to MSME’s growth and the reduction of poverty in Ghana. The Specific objective of this study was to establish the effect of access to credit and financial services on poverty reduction. One hypothesis was formulated to cover the specific objective and operationalized into four sub-hypotheses to cover the various indicators of poverty (growth in income, increase in consumption expenditure, acquisition of business assets and ability to educate children). Using cluster sampling techniques, this cross sectional study sampled 370 entrepreneurs of Micro Small and Medium Enterprises. Questionnaire was used as the data collection instrument in an exercise that took place in November and December 2016. SPSS was used to perform cross tabulations and multiple regression analysis. The study found that access to credit and financial services had a fairly weak positive effect on growth in income, increase in consumption expenditure and acquisition of business assets. The study however found access to credit and financial services to have a significant effect on ability to educate children as poverty indicators. Consequently, the study rejected the null hypotheses in question. In view of the findings, the study makes conclusions and recommendations for further studies besides highlighting limitations.
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    Effect of Access to Credit and Financial Services on Poverty Reduction in Central Region of Ghana
    (Center for Promoting Ideas (CPI), 2017-08) Ampah, Samuel Nathaniel; Jagongo, Ambrose; Omagwa, Job O.; Frimpong, Siaw
    The study sought to determine the effect of access to credit and financial services on poverty reduction in Central Region of Ghana from the perspectives of Micro, Small and Medium Enterprises (MSME’s). Micro, Small and Medium Enterprises contribute significantly to the economic growth and poverty reduction strategies of most countries. The importance of the MSME’s have long been recognized in many countries across the globe. However, lack of access to credit and financial services has been identified by several studies as the main obstacle to MSME’s growth and the reduction of poverty in Ghana. The Specific objective of this study was to establish the effect of access to credit and financial services on poverty reduction. One hypothesis was formulated to cover the specific objective and operationalized into four sub-hypotheses to cover the various indicators of poverty (growth in income, increase in consumption expenditure, acquisition of business assets and ability to educate children). Using cluster sampling techniques, this cross sectional study sampled 370 entrepreneurs of Micro Small and Medium Enterprises. Questionnaire was used as the data collection instrument in an exercise that took place in November and December 2016. SPSS was used to perform cross tabulations and multiple regression analysis. The study found that access to credit and financial services had a fairly weak positive effect on growth in income, increase in consumption expenditure and acquisition of business assets. The study however found access to credit and financial services to have a significant effect on ability to educate children as poverty indicators. Consequently, the study rejected the null hypotheses in question. In view of the findings, the study makes conclusions and recommendations for further studies besides highlighting limitations.