CREDIT AND TRAINING INFLUENCE ON FINANCIAL PLANNING PRACTICES IN WOMEN-OWNED ENTERPRISES IN NAKURU TOWN, KENYA: IS THERE A DIFFERENCE?
Abstract
Women entrepreneurship could be an effective strategy for poverty reduction. However, majority women entrepreneurs, especially in developing countries, have limited access to loans for their entrepreneurial ventures and also lack formal training and expertise in business. Properly organized financial planning helps the company to develop, gain new positions in the market, draw up and implement concepts for the production of new goods and services, and reduce entrepreneurial risk. However, poor or lack of financial planning can result in financial distress for businesses. The paper, therefore, examined the effect of training and credit offered by SMEP on the financial planning practices of women-operated enterprises in Nakuru Town, Kenya. The study used a longitudinal survey design targeting women enterpreneurs in the area who were clients of the microfinance banks. Through systematic random sampling, the study selected 95 women who were followed over a period of 12 months. Data was colected using researcher developed pre-tested questionnaires and was analyzed using both descriptive and inferential statistics.. The findings revealed that that there was a significant improvement in adoption of financial planning practices after receiving training and credit from the organization. This led to the finding that the training and credit intervention was making a positive impact on the performance of women-operated businesses in the area. The study, however, recommended that there was need to focus more on the profit and loss aspect of training as this area was underperforming. There was also need to increase the training frequency.
Keywords: Credit and Training, Financial Planning, Microfinance banks, Women Entrepreneurs, Women-Owned Enterprises
CITATION: Chebet, J. K. (2022). Credit and training influence on financial planning practices in women-owned enterprises in Nakuru Town, Kenya: is there a difference? The Strategic Journal of Business & Change Management, 9 (1), 436 – 446.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2194
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