Microfinance Services and Performance of Women Owned Business Enterprises in Busia County, Kenya
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Date
2021
Authors
Lusweti, Christopher Busolo
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Women entrepreneurship and empowerment plays a great role in the economic development
of societies. In its household context, women empowerment enhances economic stability
within the family. However, Access to money for startup of a business, operation of
businesses and expansion of businesses is one of the major challenges of any entrepreneur
with women entrepreneurs facing extra constraints to secure financial muscles. The main
objective of this study was to determine the effects of microfinance services on the
performance of women owned business enterprises in Busia County. The specific objectives
of the study were; to establish the effect of credit on the performance of women owned
business enterprises in Busia County, to determine the effect of financial training on the
performance of women owned business enterprises in Busia County, to examine the effect of
savings on the performance of women owned business enterprises in Busia County, to
conceptualize the effect of social capital on the performance of women owned business
enterprises in Busia County and to examine the effect of legal framework on the performance
of women owned business enterprises in Busia County. The study was anchored on the
resource-based theory and institutional theory. This study adopted a descriptive survey
research design. The target population was 500 women entrepreneurs in Busia County,
Kenya. Stratified random sampling technique was used and the sample size constituted 20%
of the total study target population thus making a sample size of 100 respondents for this
study. The study respondents were selected women entrepreneurs, customers of specific
selected Microfinance institutions found within Busia County business ecosystem. The
primary data was collected using questionnaires. Qualitative data was analysed using content
analysis technique and descriptive statistics including mean and standard deviation were used
in analysing quantitative data. Findings revealed that, an increase in credit, financial training,
social capital, savings, and legal framework by one unit leads to an increase in performance
by 0.502, 0.124, 0.081, 0.236, and 0.059 units respectively with a p-value of <0.05 for each
variable. The researcher can conclude that, women led enterprises are key drives to the
economic development in Kenya, therefore the study recommends that the training program
should be emphasized to enhance the literacy of financial management for exemplary
performance of the enterprises. Savings, social capital, financial training, legal framework,
and credit services significantly influences performance of women-owned business
enterprises. Based on the research findings, financial training programs for women-owned
business enterprises should be designed to meet the standard needs for women entrepreneurs
and more so the new entrants. In addition, the frequency of training should be increased to
keep them abreast with modern methodologies for better performance.
Description
Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Entrepreneurship Option) Kenyatta University, June 2021
Keywords
Microfinance Services, Performance, Women Owned, Business Enterprises, Busia County, Kenya