Market system strategies: Antecedents to financial uptake among women-owned MSMEsin informal settlements in Kenya
Loading...
Date
2023-09
Authors
Kagiri, Regina
Makau, Stephen Muathe
Journal Title
Journal ISSN
Volume Title
Publisher
IJRBS
Abstract
Despite the effort to increase financial inclusion, women-owned Micro, Small, and Medium-sized
Enterprises (MSMEs) continue to face challenges in the uptake of financial services. Low financial
uptake is strongly associated with business failure leading to low income and living standards among
women entrepreneurs in marginalized areas. Market system strategies are crucial in determining
businesses' level of financial uptake. The study investigated the effect of market system strategies on
the financial uptake of women-owned MSMEs in the informal settlement of Nyeri County. Specifically,
it investigated the effect of business readiness, financial literacy, investor relationships, and investment
impact on financial uptake among women-owned MSMEs. The study variables were anchored on Ricky
Griffin's model, Theory of Change, and Refinancing theory. The study used a descriptive research
design, specifically a cross-sectional design. The target population was 890 women-owned MSMEs in
the informal settlements of Nyeri county. Proportionate stratified and random sampling were used to
obtain a sample of 275 businesses representing approximately 30% of the study population. Data was
collected using structured questionnaires. A pilot test was conducted using ten individuals to test and
improve the study questionnaire Reliability was tested using Cronbach's alpha, where an alpha of 0.7
was the acceptable threshold. Regression analyses indicated that the market system strategies, business
readiness, financial literacy, impact investment, and investor relationship positively and significantly
affected financial uptake, with p-values lower than 0.05 alpha. The study found that businesses with
better market system strategies have a higher financial uptake. Based on the findings of this study, it is
recommended that policies and interventions aimed at improving financial uptake among womenowned MSMEs should focus on enhancing business readiness and financial literacy and building
strong impact investment and investor relationships. The county government, NGOs, and others
interested stakeholders should encourage women entrepreneurs in informal settlements of Nyeri county
to seek training and support to develop their business skills and increase their understanding of
financial uptake. Furthermore, the county and national governments should connect women-owned
MSMEs with impact investors and establish relationships to provide funding, support, and mentorship.
Finally, policymakers and stakeholders in the financial sector should consider creating an enabling
environment that supports and incentivizes impact investment in MSMEs, especially those owned by
women, to increase their financial uptake
Description
Article
Keywords
Market System Strategies, Women-Owned Msmes, Financial Uptake, Kenya
Citation
Kagiri , R., & Muathe, S. (2023). Market system strategies: Antecedents to financial uptake among women-owned MSMEs in informal settlements in Kenya. International Journal of Research in Business and Social Science (2147- 4478), 12(7), 61–73. https://doi.org/10.20525/ijrbs.v12i7.2873