EFFECT OF MICROFINANCE SERVICES ON THE PERFORMANCE OF WOMEN BASED ENTERPRISES IN KENYA: CASE OF ONGATA RONGAI TOWNSHIP - KAJIADO COUNTY
Abstract
Background of the study: Micro and small enterprises (MSEs) are emerging today as an avenue for employment and a way of improving the social and economic status of the people, especially the poor and marginalized. Over the years, the government of the Republic of Kenya has recognized the importance of the MSE sector as a source of employment, income and inexpensive goods and services, contributing to the country’s social-economic development and poverty reduction.
Objective of the study: This study sought to investigate the effect of microfinance services on the performance of women-based enterprises in Kenya: case of Ongata Rongai Township - Kajiado County.
Methodology: The sample size consisted of 270 women entrepreneurs who operate Micro and small Enterprises (MSE’s). The study employed primary data to achieve its objectives. The response rate was 70%. Performance in terms of sales before and after microfinance loans was measured using Pearson correlation. Results of the study was presented through graphs, chart and tables for easier interpretation. The data was analyzed using both descriptive and using Pearson bivariate summary of correlation.
Findings: One of the study findings was that there, is the significant link between relationship of microfinance loans and the performance of women-based enterprises. Women that access these loans are thus likely to record improved business performance compared to those without access to microfinance loans or any other types of loans. The findings of the study will be important in that they can be used to formulate policies and strategies to promote the growth of MSE’s in the country.
Keywords: Microfinance Services, Performance, Women Based Enterprises, Kajiado County & Kenya
References
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Mullei, A., & Bokea, C. (Eds.). (1999). Micro and small enterprises in Kenya: agenda for improving the policy environment. International Centre for Economic Growth.
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Mwangi, S. W. (2011). Factors affecting growth of micro and small enterprises funded by micro finance institutions in Thika town Kenya.
Mwobobia, F. M. (2012). The challenges facing small-scale women entrepreneurs: A case of Kenya. International Journal of Business Administration, 3(2), 112.
Ngehnevu, C. B. (2010). The impact of microfinance institutions (MFIs) in the development of small and medium size businesses (SMEs) in Cameroon: a case study of CamCCUL (Doctoral dissertation, SLU/Department of Economics).
Njama, G. J. (2013). Effect of venture capital financing on the growth of small and medium-sized enterprises in Kenya. Unpublished Msc. Thesis, University of Nairobi, Kenya.
Ocholah, R. M., Ojwang, C., Aila, F., Oima, D., Okelo, S., & Ojera, P. B. (2013). Effect of micro finance on performance of women owned enterprises, in Kisumu city, Kenya.
Omboi, B. M., & Wangai, P. N. (2011). Factors that influence the demand for credit for credit among small-scale investors: a case study of Meru Central District, Kenya.
Parker, B. J. (2010). A conceptual framework for developing the female entrepreneurship literature.
Vossenberg, S. (2013). Women Entrepreneurship Promotion in Developing Countries: What explains the gender gap in entrepreneurship and how to close it. Maastricht School of Management Working Paper Series, 8, 1-27.
Wijesiri, M., & Meoli, M. (2015). Productivity change of microfinance institutions in Kenya: A bootstrap Malmquist approach. Journal of Retailing and Consumer Services, 25, 115-121.
World Bank (2013). World Bank development report 2010. A better investment climate for everyone, IBRD/World bank, Washington D.C.
Yunus, M. (2009). Creating a world without poverty: Social business and the future of capitalism. Public Affairs.
Alam, S., & Mohiuddin, G. (2014). Chronological development of entrepreneurship concept–A critical evaluation. American Journal of Economics, 4(2), 130-135.
Audretsch, D. B., Falck, O., & Heblich, S. (Eds.). (2011). Handbook of research on innovation and entrepreneurship. Edward Elgar Publishing.
Belwal, R., Tamiru, M., & Singh, G. (2012). Microfinance and sustained economic improvement: Women small‐scale entrepreneurs in Ethiopia. Journal of International Development, 24, S84-S99.
Brau, C. J., & Woller, M. G. (2010). Impact of Microfinance–an empirical study on the attitude of SHG leaders in Vellore District. Journal of Finance and management, 2, 59-70
Cantwell, M. (2014). 21st Century Barriers to Women’s Entrepreneurship: Majority Report of the US Senate Committee on Small Business and Entrepreneurship.
Christen, R. P., Rosenberg, R., & Jayadeva, V. (2004). Financial Institutions with a ‘Double Bottom Line’: Implications for the Future of Microfinance. CGAP Occasional Paper, 8, 1-20.
Cohen, M., & Nelson, C. (2011). Financial literacy: A step for clients towards financial inclusion. Global Microcredit Summit, 14-17.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Dillman, D. A., Phelps, G., Tortora, R., Swift, K., Kohrell, J., Berck, J., & Messer, B. L. (2009). Response rate and measurement differences in mixed-mode surveys using mail, telephone, interactive voice response (IVR) and the Internet. Social science research, 38(1), 1-18.
Dworkin, S. L., Grabe, S., Lu, T., Hatcher, A., Kwena, Z., Bukusi, E., & Mwaura-Muiru, E. (2013). Property rights violations as a structural driver of women’s HIV risks: A qualitative study in Nyanza and Western Provinces, Kenya. Archives of sexual behavior, 42(5), 703-713.
Erffmeyer, R. C., & Johnson, D. A. (2001). An exploratory study of sales force automation practices: expectations and realities. Journal of Personal Selling & Sales Management, 21(2), 167-175.
Ewoh, E. (2014). Female entrepreneurs performance: A systematic literature review of forces influencing the performance of African female entrepreneurs.
Fan, W., & Yan, Z. (2010). Factors affecting response rates of the web survey: A systematic review. Computers in human behavior, 26(2), 132-139.
Feigenberg, B., Field, E. M., & Pande, R. (2010). Building social capital through microfinance (No. w16018). National Bureau of Economic Research.
Gibb, S. (2008). Microfinance s Impact on Education, Poverty, and Empowerment: A Case Study from the Bolivian Altiplano (No. 04/2008). Development Research Working Paper Series.
Guérin, I. (2006). Women and money: Lessons from Senegal. Development and change, 37(3), 549-570.
International Fund for Agricultural Development. (2009). Gender in agriculture sourcebook. World Bank Publications.
Khan, A. A. (2008). Islamic Microfinance. Birmingham, UK: Islamic Relief Worldwide.
Kiraka, R. N., Kobia, M., & Katwalo, A. M. (2013). Micro, small and medium enterprise growth and innovation in Kenya: A case of the women enterprise fund.
Kozlenkova, I. V., Samaha, S. A., & Palmatier, R. W. (2014). Resource-based theory in marketing. Journal of the Academy of Marketing Science, 42(1), 1-21.
Kuziliwa, J. (2005). The role of credit form small business success: A study of the national entrepreneurship development fund in Tanzania. Journal of Entrepreneurship, 14, 131.
Luthans, F., Luthans, K. W., Hodgetts, R. M., & Luthans, B. C. (2001). Positive approach to leadership (PAL) implications for today's organizations. Journal of Leadership Studies, 8(2), 3-20.
Maghanga-Mtuweta, F. M. (2007). The perception of micro finance loan borrowers on the effects of loans on their businesses and as a poverty alleviation tool: a case study of borrowers in Nairobi (Doctoral dissertation, school of business, University of Nairobi).
Marković, M., & Marković, D. (2007). Virtual Factories: The Education of the Future. The Perspective of Women’s Entrepreneurship in the Age of Globalization. Charlotte, NC: Information Age Publishing, 149-56.
Mbugua, M. W. (2010). Impact of microfinance services on financial performance of small and micro enterprises in Kenya. Unpublished MBA project, University of Nairobi.
Mohammad, A. K., & Mohammed, A. R. (2007). Impact of Microfinance on Living Standards, Empowerment and Poverty Alleviation of Poor People: A Case Study of Microfinance in the Chittagong District of Bangladesh. Umeå School of Business (USBE).
Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of business venturing, 29(1), 1-16.
Mordeno, K. (2010). Microfinance: the path to poverty alleviation.
Morduch, J., & Haley, B. (2002). Analysis of the effects of microfinance on poverty reduction. New York: NYU Wagner Working Paper, 1014.
Mullei, A., & Bokea, C. (Eds.). (1999). Micro and small enterprises in Kenya: agenda for improving the policy environment. International Centre for Economic Growth.
Muteru, B. (2013). The effect of microfinance institutions on growth of women owned enterprises: A case study of Kenya Women Finance Trust in Kikuyu Township. International Journal of Social Sciences and Entrepreneurship, 1(5), 351-371.
Mwangi, S. W. (2011). Factors affecting growth of micro and small enterprises funded by micro finance institutions in Thika town Kenya.
Mwobobia, F. M. (2012). The challenges facing small-scale women entrepreneurs: A case of Kenya. International Journal of Business Administration, 3(2), 112.
Ngehnevu, C. B. (2010). The impact of microfinance institutions (MFIs) in the development of small and medium size businesses (SMEs) in Cameroon: a case study of CamCCUL (Doctoral dissertation, SLU/Department of Economics).
Njama, G. J. (2013). Effect of venture capital financing on the growth of small and medium-sized enterprises in Kenya. Unpublished Msc. Thesis, University of Nairobi, Kenya.
Ocholah, R. M., Ojwang, C., Aila, F., Oima, D., Okelo, S., & Ojera, P. B. (2013). Effect of micro finance on performance of women owned enterprises, in Kisumu city, Kenya.
Omboi, B. M., & Wangai, P. N. (2011). Factors that influence the demand for credit for credit among small-scale investors: a case study of Meru Central District, Kenya.
Parker, B. J. (2010). A conceptual framework for developing the female entrepreneurship literature.
Vossenberg, S. (2013). Women Entrepreneurship Promotion in Developing Countries: What explains the gender gap in entrepreneurship and how to close it. Maastricht School of Management Working Paper Series, 8, 1-27.
Wijesiri, M., & Meoli, M. (2015). Productivity change of microfinance institutions in Kenya: A bootstrap Malmquist approach. Journal of Retailing and Consumer Services, 25, 115-121.
World Bank (2013). World Bank development report 2010. A better investment climate for everyone, IBRD/World bank, Washington D.C.
Yunus, M. (2009). Creating a world without poverty: Social business and the future of capitalism. Public Affairs.
Published
2020-08-01
How to Cite
Munuve, A. M., Githui , D. T., & Omurwa, M. J. (2020). EFFECT OF MICROFINANCE SERVICES ON THE PERFORMANCE OF WOMEN BASED ENTERPRISES IN KENYA: CASE OF ONGATA RONGAI TOWNSHIP - KAJIADO COUNTY. African Journal of Emerging Issues, 2(7), 96 - 115. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/119
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