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dc.contributor.advisorEddie Simiyu Mungamien_US
dc.contributor.advisorMungai John Njangiruen_US
dc.contributor.authorNgureh, John Mwangi
dc.date.accessioned2021-10-05T13:47:01Z
dc.date.available2021-10-05T13:47:01Z
dc.date.issued2021
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/22723
dc.descriptionA Thesis Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of Degree of Doctor of Philosophy in Business Administration (Finance Option), Kenyatta University, February, 2021en_US
dc.description.abstractMSEs significantly subscribe to economic development around the world, in Africa and also in Kenya. MSEs play an extraordinary role in creation of jobs, income generation and is a seedbed for medium and large enterprises. MSEs face many obstacles restricting their survival and financial performance as measured by growth in sales and return on assets; including lack of skilled manpower, lack of markets and competition. In Kenya, MSEs failure rate is 67%. In Nairobi City County MSEs financial economic performance determined by growth in sales reduced from 95.7% in 2011 to 87.2% in 2017. This study aimed to investigate the effect of financing preference determinants on the financial performance of MSEs in Stare he, Nairobi City County, Kenya. The study specifically aimed to establish the effect of financing costs, ownership characteristics and the firms’ characteristics on financial performance of MSEs in Stare he, Nairobi City County, Kenya. The study also established the moderating effect of regulatory framework and the effect of mediation of risk taking on the association of financing preference determinants and financial performance of MSEs in Stare he, Nairobi City County Kenya. The study was anchored on financial constraint theory, Pecking-Order theory, Resource-based theory and Trade-off theory which gave support and direction to this study. The study adopted descriptive survey design and positivism research philosophy. Stratified random sampling was used to select 384 MSEs determined from a target population of 21,869 Licensed by Nairobi City County. The study used Primary data (cross sectional) collected by administering a questionnaire with a rating scale of 1-5 of closed end-ended questions. To ascertain the validity of measurement model CFA was used before commencing SEM to test the postulates under study through Amos software. Descriptive statistics and inferential statistics were used to analyze data. Diagnostic tests included; Berletts test of sperecity Multi-collinearity test, Keizer-meyer-olkin test and Normality test. Data results were presented inform of graphs, tables, percentages and charts. The study found a positive significant relationship between financing costs and financial performance of Micro and Small Enterprises. The study also found positive significant relationship between ownership characteristics and financial performance of MSEs in Stare he. Further, the study found a negative relationship between ownership characteristics on financial performance. The finding demonstrated that regulatory framework had no moderation effect between FPDs and financial performance of MSEs in Stare he. Risk taking was found to partially mediate the relationship between FPD and financial performance of MSEs. The study recommended that; firstly, the government through its financial agencies should work out a framework to reduce costs to MSEs. Secondly, the government should reduce the bureaucracy involved in business start-ups. Thirdly, the government should enhance entrepreneurship skills to MSE owners and managers. Lastly, business education provided to MSE owners and managers should include inculcation of risk taking concept.en_US
dc.description.sponsorshipKenyatta Universityen_US
dc.language.isoenen_US
dc.publisherKenyatta Universityen_US
dc.subjectFinancing Preference Determinantsen_US
dc.subjectTheir Influenceen_US
dc.subjectFinancial Performanceen_US
dc.subjectMicro and Small Enterprisesen_US
dc.subjectNairobi City Countyen_US
dc.subjectKenyaen_US
dc.titleFinancing Preference Determinants and Their Influence on Financial Performance of Micro and Small Enterprises in Nairobi City County, Kenyaen_US
dc.typeThesisen_US


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