Banking Services and Performance of Women-Owned Enterprises in Nairobi City County, Kenya

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Date
2023-08
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Kenyatta University
Abstract
Sub-Saharan Africa is currently leading globally in the ratio of women to men getting into entrepreneurship annually. In Kenya, the role played by Women-owned Enterprises in creating employment opportunities cannot be overlooked as formal employment continues to shrink in the country. These enterprises have elevated women economically to lower dependency levels on their spouses. According to Kenya Institute for Public Policy Research and Analysis statistics (2021) about 57% of Women-owned Enterprises fail to survive in business past year 2 of their establishment due to lack of finances to spur their growth in order to compete favorably against established companies and corporate organizations. This study therefore, seeks to explore relationship between banking services and performance of Women-owned Enterprises in Nairobi City. The specific objectives include; relationship of agency banking, bank financial services, bank non-financial services and bank assurance services on performance of Women-owned Enterprise in Nairobi City County. This study was anchored on institutional theory, financial inclusion theory, and capital structure theory as its theoretical framework. Descriptive research design will be applicable in the study with stratified random sampling technique adopted for selection of samples from each stratum based on the location. The study target population was registered Women Enterprises within the Nairobi central business district, Muthurwa Market, Kamukunji Market and Kariokor Market. Sampling frame consisted of 5339 registered Women-owned Enterprises found in the four selected regions of Nairobi City County out of which 262 sampled respondents were drawn. Data collection was done through interviews and structured questionnaires that will be administered by the researcher. Data analysis was done through descriptive and inferential statistics, descriptive statistics included mean, standard deviation, frequency and percentages while inferential statistics included multiple regression and correlation analysis. Data was presented inform of statistical table, charts and graphs accompanied with relevant discussions. The findings of the investigation revealed that agency banking insignificantly positively affected Women-owned enterprise; bank financial services significantly in a way that positively affected Women owned enterprise; bank non-financial services inversely affected Women-owned enterprise insignificantly; while bank assurance insignificantly affected Women-owned enterprise in a way that is negative. The study recommend that the management of Women-owned enterprise should device a means in which more people can be included in the affairs of the business to increase savings and credit operations of the business in Nairobi City County, Kenya.
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A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Finance) of Kenyatta University, August 2023. Supervisor Nathan Mwenda
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