EFFECT OF ACCESS TO FINANCE ON FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN KENYA
Abstract
The objective of this study was to examine the effect of access to finance on financial performance of manufacturing firms in Kenya. The research scope focused on manufacturing firms in Kenya. The target population of the study was 199 manufacturing firms based in Nairobi County taken to be a representative of all manufacturing firms in Kenya. In order to collect data from the sampled respondents, stratified random sampling was used to classify each of the twelve sub sectors into individual strata. Simple random sampling procedure was then used to select the sample in order to ensure each and every firm in the target population was represented. The study adopted a survey design that was both descriptive and exploratory in collecting data. The key findings were that access to finance had a positive influence on the financial performance of manufacturing firms. There was a significant linear relationship between access to finance and manufacturing firm’s financial performance. The study assists policy makers in coming up with better policies on improvement of financial performance. The study adds to the literature on manufacturing firm’s financial performance.
Key Terms: Access to finance, Financial Performance, Innovation, Financial market, Investment
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i4.332
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