MICRO CREDIT ACCESS AND FINANCIAL PERFOMANCE OF WOMEN GROUPS IN KAKAMEGA COUNTY, KENYA

Abstract

The purpose of this study was to examine the determinants of growth of women owned enterprise in Kakamega County. Specifically, the studies examined the effect of micro-credit terms, micro-credit cost, collateral requirement and financial management skills on growth of women owned enterprises in Kakamega County. Descriptive survey was used. The theories of interest were social capital and resource-based theory. The population of interest comprised 116 of women owned enterprises in Kakamega County. Stratified random sampling was used to select 90 small and medium enterprises. The data collection instrument which used was questionnaires which were administered to owners. Analysis of data was done using descriptive and inferential statistics. The results of this study revealed that micro credit terms, micro credit cost, collateral requirement and financial management skills, affect the financial performance of Women groups enterprise in Kakamega County. Micro credit terms affect the financial performance of Women groups enterprise in Kakamega County positively (β1= 0.410, p< 0.05). Micro credit costs have a negative and significant effect on financial performance of Women groups enterprise in Kakamega County (β2= -0.224, p< 0.05). Collateral requirements have a significant and negative effect on financial performance of Women groups enterprise in Kakamega County (β3 = -0.184, p< 0.05). Financial management skills training has a positive and significant effect on financial performance of Women groups enterprise in Kakamega County (β4= 0.196, p<0.05). The study concluded that micro credit terms, micro credit cost, collateral requirement and financial management skills are some of the variables significant in financial performance of Women groups enterprise in Kakamega County. Based on the conclusions reached, the study recommended that the Women groups enterprise in Kakamega County should take into account the micro credit terms, micro credit cost, collateral requirement and financial management skills since the study revealed a positive significant effect on financial performance by this attribute. The findings of this study are significant as they will enable decision makers to adjust their policies to eliminate obstacles hindering micro credit access as well as improve financial performance.

Key Word: Microcredit Terms, Microcredit Cost, Collateral, Financial Management Skills

CITATION: Atieno, J. O., Miroga, J., & Otinga, H. (2024). Micro credit access and financial perfomance of women groups in kakamega county, Kenya. The Strategic Journal of Business & Change Management, 11 (4), 179 – 196. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3027