Rotating Savings and Credit Associations and Growth of Women Owned Micro Small and Medium Enterprises, in Bomet County, Kenya

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Date
2024-06
Authors
Serem, Ruth Chepkemoi
Jagongo, Ambrose
Journal Title
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Volume Title
Publisher
IJMSSSR
Abstract
: Small and medium-sized enterprises (SMEs) form the backbone of economies worldwide, comprising over 90% of businesses and playing a pivotal role in employment and value addition, particularly in nonagricultural sectors. In Kenya, this sector has been instrumental in sustaining livelihoods for millions, spanning both formal and informal economies. Despite their significance, SMEs often grapple with limited access to credit, a challenge exacerbated by perceived riskiness from the banking sector, attributed to the inherent opacity of smaller enterprises compared to their larger counterparts. Interestingly, they emerge as crucial lifelines, especially for women-owned businesses, offering alternative avenues for capital accumulation. However, despite the acknowledged importance of SMEs, research on their growth hurdles yields conflicting results, underscoring the need for a nuanced understanding. Therefore, this study sought to establish the effect of The Role of Rotating Savings and Credit Associations (ROSCA’s) to the growth of women owned Micro small and medium enterprises (MSME’s) in Bomet County, Kenya. The study adopted descriptive survey design. The target population was 270 registered and active women owned Micro Small and Medium Enterprises and a sample size of 135 was used. The study used both semi-structured questionnaire and data collection sheet to collect data. The data was analyzed using descriptive statistics and inferential statistics. The findings from data analysis indicated that lending policies have no statistical significance effect on the growth of women owned businesses (p-value= 0.020 > 0.05). The findings from the testing of literacy level of members on growth women owned businesses indicated there there exists a positive effect (β = .895, p <.05). Guided by the findings a number of recommendations were made. Rotating Savings and Credit Associations (ROSCA’s) should devise strategies on how they can save some funds for investments in income generating projects, this way members can increase their income pool. Lastly, ROSCA’s should engage in training its members on financial management as it was noted to be a significant factor in influencing the growth of women owned Micro small and medium enterprises.
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Article
Keywords
ROSCA’s-Rotating Saving and Credit associations, MSME’s Micro small and medium enterprises
Citation
Serem, R. C., & Jagongo, A. ROTATING SAVINGS AND CREDIT ASSOCIATIONS AND GROWTH OF WOMEN OWNED MICRO SMALL AND MEDIUM ENTERPRISES, IN BOMET COUNTY, KENYA.