Credit finance and survival of small business in Kenya: a case study of Traders in Nairobi City

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Kampala International University; College of Economics and management
This study sought to investigate the effects of the availability of credit finance on the survival of small businesses in Kenya. The study also sought to establish whether or not basic prerequisites conducive for establishment of a vibrant financial services sector as alternative financer of SMEs do exists in Kenya. The objectives of the study were to; establish the causes of lack of credit finance to SMEs in Nairobi City, to find out other factors that affect the survival of SMEs in Nairobi City. The findings of the research were that the causes of lack of credit to small and medium business in Nairobi City which include inadequate education and skills, technological change, lack of managerial training and experience among others. Other factors that affect the survival of SMEs in Nairobi City which include taxation, poor market, management problems, poor record keeping, wrong pricing among others. The policy measures that can be implemented to ensure the survival of small and medium business in Nairobi City which include access to land and premises, access to credit, marketing assistance, coordination of activities and awareness creation among others. The research concluded that microfinance played a vital role towards development of small and medium businesses in Nairobi City. Based on the research findings the following were recommended, all stakeholders of local economic development including donors, government organisations, NGOs and private sector should strive together to have an overall strategy for improving the BDS market development interventions. Hence, all interventions in supporting MSEs should be designed based on the new BDS market development principles.
A research dissertation submitted to the School of Business and Management as partial fulfillment for the requirement of the Award of a Bachelor’s Degree in International Business Administration of Kampala International University
Credit finance, Survival of small business, Traders in Nairobi City, Kenya