The impact of micro-credit institutions on the growth of small and medium scale enterprises in Kibuye market of Kisumu Kenya
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Date
2012-05
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
The purpose of the study was to assess the contribution of microfinance services on the
growth of small scale businesses and the objectives were to establish the percentage growth of
small scale businesses, to ascettain the services and products rendered by small scale
businesses after accessing micro credit facilities, to establish the practices employed in paying
back the loans and interest rate and to establish the tangible achievements arising from
accessing financial services.
The fundamental objective of this study is to assess the impact of Microfinance on Small and
Medium Enterprises (SMEs) in Kisumu. Simple random sampling technique was employed in
selecting the l 00 SMEs that constituted the sample size of the research.
Structured questionnaire was designed to facilitate the acquisition of relevant data which was
used for analysis. Descriptive statistics which involves simple percentage graphical charts and
illustrations was tactically applied in data presentations and analysis. The findings of the study
reveal that significant number of the SMEs benefitted from the MFis loans even though only
few of them were capable enough to secure the required amount needed. Interestingly,
majority of the SMEs acknowledge positive contributions of MF!s loans towards promoting
their market share, product innovation achieving market excellence and the overall economic
company competitive advantage.
Other than tax incentives and financial suppotts, it is recommended that Government should
try to provide sufficient infrastructural facilities such as electricity, good road network and
training institutions to suppott SMEs in Kisumu and the country as whole.
Securing micro-financing by SMEs is determined by the stage or level of development m
which the business is. Businesses that are viewed as growing had it easy to get a loan. But the
main criteria used were the ability to pay back and to meet the set requirements to obtain a
loan. The main requirement is fixed tangible assets such as land.
Description
A research report submitted to the College Of Economics and Management Sciences in partial fulfillment of the requirements for the a Ward of Bachelor’s Degree in Business Administration Of Kampala International University
Keywords
Micro-credit, Institutions