Access of Credit and Financial Performance in Small and Micro Enterprises: Evidence of Enterprise Development Funds Strategies Used in Kenya
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Date
2021
Authors
Kemei, Joseph Kipngeno
Warui, Fredrick
Journal Title
Journal ISSN
Volume Title
Publisher
IJLRHSS
Abstract
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.
Description
Article
Keywords
Access to Credit, Financial Performance, Descriptive Survey Design, Small and Medium Enterprise, Kenya
Citation
Kemei, J. K., & Warui, F. Access of Credit and Financial Performance in Small and Micro Enterprises: Evidence of Enterprise Development Funds Strategies Used in Kenya.