Mobile Telephony, Social Networks and Credit Access: Evidence from MSMES in Kenya

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dc.contributor.authorMdoe, Idi Jackson
dc.contributor.authorKinyanjui, George Kariuki
dc.date.accessioned2022-05-23T08:11:11Z
dc.date.available2022-05-23T08:11:11Z
dc.date.issued2018-04-17
dc.descriptionA Research Article in the Cogent Economics and Financeen_US
dc.description.abstractAccess to credit by micro, small and medium enterprises is key for growth and employment. However, it is hindered by information asymmetry. We investigated the effect of mobile telephony and social networks (group networks) on the probability of access to credit by Micro, Small and Medium enterprises in Kenya. Our analysis employed cross-sectional data, the 2016 FinAccess Household Survey infographics sheet. The analysis assumed a limited dependent variable modelling. Our analysis revealed that micro-, small- and medium-sized enterprises with owners who currently have mobile banking, mobile money and group participation, respectively, have 8.8, 6.05 and 1.97 percentage points higher chance of receiving formal credit. In terms of informal credit, the analysis revealed that below five groups participation in an extra group by the MSME owner increases the probability of accessing informal credit by 6.26 percentage points. As policy measures, our analysis implies that owners of MSMEs should participate in groups and take up mobile money and banking to further their MSMEs chances of accessing formal and informal credit. In addition, the findings imply that money lenders should create strategies to tap MSMEs reputation created by groups and mobile telephony.en_US
dc.identifier.citationIdi Jackson Mdoe & George Kariuki Kinyanjui | (2018) Mobile telephony, social networks and credit access: Evidence from MSMEs in Kenya, Cogent Economics & Finance, 6:1, 1459339, DOI: 10.1080/23322039.2018.1459339en_US
dc.identifier.issn2332-2039
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/23766
dc.language.isoenen_US
dc.publisherTaylor & Francisen_US
dc.subjectMicro small and medium enterprises;en_US
dc.subjectMobile telephonyen_US
dc.subjectSocial networksen_US
dc.titleMobile Telephony, Social Networks and Credit Access: Evidence from MSMES in Kenyaen_US
dc.typeArticleen_US
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