ACCESS TO CREDIT, INNOVATION AND GROWTH OF SMALL AND MEDIUM ENTERPRISES IN MACHAKOS COUNTY
Abstract
The aim of this study was to examine the strategic determinants of growth of Small and Medium Enterprises in Machakos County. Specific objectives of the study were to establish the association between access to credit and Innovation of entrepreneurs on growth of small and medium enterprises in Machakos County. The population of study was 114,249 Entrepreneurs with small or medium Enterprises in Machakos County, Kenya and a sample size of 384 Respondents selected through stratified random sampling. Primary data was collected using questionnaires which were issued to the respondents. Descriptive analysis was used, and this included weighted means, standard deviation, relative frequencies and percentages. A computer software programme (SPSS) version 21.0 was involved in analytical data processing in order to come up with arrangements of data to be used for continuous data processing. Inferential statistics through application of multiple linear progression mode, correlation and analysis was applied in examination of the association between the findings variables. The processed data was presented by use of frequency Tables. The study found out that access to credit, innovation of entrepreneur, physical resources, and government policy each had statistically significant influence on growth of SMEs in Machakos County. The findings of the study were comparable with the predictions of the Theory of Credit Rationing and Resource Based Theory. The study recommended that researchers and scholars in the field of Strategic Management should consider using the empirical evidence adduced to further their research interests. Theorists should also consider the findings of this study to find further empirical foundation in light of the determinants of growth of SMEs investigated in the study.
Key words: Innovation, Credit, Growth of SMEs, SMEs, Financial inclusion
CITATION: Kasivu, J. M., Kilonzo, T. M., & Sang, W. (2020). Access to credit, innovation and growth of small and medium enterprises in Machakos County. The Strategic Journal of Business & Change Management, 7(3), 857 – 866.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i3.1712
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