Effects of Access to Banking Services on Financial Performance of Grocery Vendors at Kapsabet Municipality Market in Nandi County, Kenya
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Date
2023-11
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International Journal of Social Science and Humanities Research
Abstract
According to the laws and regulations of the Nandi District Government, SMEs are prioritized. However,
the lack of sufficient working capital, relevant technological capabilities and global market access prevents these
SMEs from realizing their full potential. The purpose of this research was to find out how the financial performance
of grocery sellers at the Kapsabet Municipality Market in Nandi County, Kenya, was affected by their ability to
access banking services. A descriptive research design was used for this investigation. The study focused on 1000
grocery vendors at the Kapsabet Municipality Market in Nandi County, Kenya. As of December 2019, the Nandi
County Government had registered 1000 vendors as grocery providers. These vendors included 231 clothes, 182
beverage, 238 service, and 226 curio sellers. There were 286 respondents in the sample. The respondents were divided
into two groups using the stratified sampling method: wholesale dealers and retail traders. Respondents were
selected by basic random selection from these groups. 335 persons made up the sample. Questionnaires were used
to collect data for the study. A questionnaire with 33 respondents who were excluded from the final data collection
system was evaluated in order to determine the validity and reliability of the questionnaire item. Descriptive statistics
like descriptive and standard deviations were used to assess and portray quantitative data in the form of tables,
charts, and bar graphs. The study employed inferential statistics, including multiple regression analysis and
correlation analysis, to ascertain the interaction between the variables. A strong and favorable correlation was
observed between the financial performance of grocery merchants at Kapsabet Municipality Market and their access
to banking services. According to the study's findings, consumers who have access to banking services may easily
make payments at retail establishments or withdraw cash. They can also readily apply for loans to increase their
company's financial capacity, which they then pay back at a fair interest rate. Therefore, the study recommends that
the county government foster an environment that is favorable to the establishment of banks and other financial
institutions, as well as educating grocery stores about the value of using bank services. These actions will help to
mitigate access issues and lower transaction costs and agency problems. Possess laws that are favorable to small business leasing, factoring, equity, banking, and credit guarantee programs
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Jebitok, E. K., & Simiyu, E. (2023). Effects of access to banking services on financial performance of grocery vendors at Kapsabet Municipality Market in Nandi County, Kenya. International Journal of Social Science and Humanities Research, 11(4), 320-325. Available at: www.researchpublish.com