Abstract
Micro financing is the provision of financial services to low-income clients or solidarity lending groups that lack access to banking and its related services. Traditionally, women based enterprises have not been favoured by the mainstream credit policies of the commercial banks owing to their inability to raise collateral securities to guarantee the loans. The general objective of this study was to determine the effect of micro financing on the performance of women owned enterprises in Kisumu City. Specifically, the study sought to determine the effect of microfinance on productivity, profitability and growth and expansion of women owned enterprises. The study population comprised 3000 registered women businesses. A sample of 341 was drawn. Clustering, simple random and purposive sampling approaches were applied. Primary and secondary data were used. Questionnaire and interview were used to obtain primary data. Quantitative data was analysed by use of both the descriptive and inferential statistics. The results indicated that micro financing in sufficient quantities would have greater effect on profitability, productivity and growth and expansion of women owned enterprises. The outcome of the study would be significant in reformulating women business credit policies, for improving credit services to entrepreneurs.
Highlights
Despite the crucial role of women entrepreneurs in the economic development of their families and countries; it is, discovered that women entrepreneurs have low business performance compared to their male counterparts (Akanji, 2006); and this is caused by factors which normally affect entrepreneurial performance such as lack of credit, saving, education or training, and social capital (Shane, 2003)
For long, women entrepreneurs have low business performance compared to their male counterparts and this has been attributed to factors which normally affect entrepreneurial performance such as lack of credit, saving, education or training, and social capital
It is difficult to make meaningful analysis on the relationship between micro financing and performance of these enterprises for future projections and decision making. This is the gap this study sought to address. It focused on the effect of micro finance on the performance of women owned enterprises in Kisumu City
Summary
Despite the crucial role of women entrepreneurs in the economic development of their families and countries; it is, discovered that women entrepreneurs have low business performance compared to their male counterparts (Akanji, 2006); and this is caused by factors which normally affect entrepreneurial performance such as lack of credit, saving, education or training, and social capital (Shane, 2003). Microfinance programmes and institutions have globally recognized as a prospective component of strategies of development organisations, governments, and societies to promote enterprises in developing countries (Hulme, 2000) They are organisations with a goal to serve the needs of un-served or underserved markets as a means of meeting development objectives (Ledgerwood, 1998). For long, women entrepreneurs have low business performance compared to their male counterparts and this has been attributed to factors which normally affect entrepreneurial performance such as lack of credit, saving, education or training, and social capital. It is still unclear the effect these funds have had on the women owned enterprises. The general objective of the study was to determine the effect of micro finance on the performance of women owned enterprises
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Greener Journal of Business and Management Studies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
