Firm Size and Credit Accessibility of MSEs in Kenya

Abstract

Micro and small enterprises have been known to be drivers of socio economic development. Despite the effort of the government in formulating and implementing policies intended to enhance entrepreneurship, several challenges are still being experienced by entrepreneurs, with the major ones being the requirements of lenders of different financial institutions. This research aimed at determining the influence of firm size characteristics on MSEs credit accessibility in Meru Town. The study employed the use of a questionnaire as the primary method of data collection. A target population of 800 registered MSEs was used for random sampling yielding a sample size of 89 respondents, all of whom were owners or managers of these enterprises. The data was analysed using descriptive statistics and a multiple linear regression model. The finding was that firm size significantly influenced credit accessibility of MSEs. The study results show that firm size and credit accessibility of MSEs account for (79.2%) of the variation in independent variables.