THE EFFECT OF ACCESS TO FINANCE ON FINANCIAL PERFORMANCE OF SMES IN MOMBASA COUNTY KENYA
Abstract
The study examined the effect of access to finance on financial performance of SMEs in Mombasa hotel industry in Kenya. The study sought to understand the effect of access to finance in the hotel sector in Mombasa County and environs. The study adopted a mixed research design using both descriptive and quantitative approaches with the aim of establishing the relationship between access to finance and financial performance of SMEs. The target population was 1881 with a sample size of 320. Secondary and primary data was used. Questionnaires were employed in the collection of primary data. SPSS Version 20 was used to generate reports. Tools and instrument used included ANOVA, Regression analysis, correlation coefficient and chi- square. The regression coefficient positive and significant t=2.954, beta 0,191 p- value -0.003. The hypothesis for the study was that access to finance has no significant effect on financial performance of SMEs in the also performed there hotel industry in Kenya. The study findings based on p- value 0.003 which is lower than 0.05 implied rejection the null hypothesis which states that access to finance has on significant effect on financial performance of SMEs in Mombasa County in Kenya. Further chi-square was performed with p-value of 0.000 indicating rejection the null hypothesis and accepted the alternative analysis.
Key Terms: Access to Finance, Financial Performance, SMEs, Profitability, Liquidity
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DOI: http://dx.doi.org/10.61426/sjbcm.v4i3.514
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