The Effect Of Asset Micro-Leasing On Access To Capital And Income By Small And Medium Enterprises In Kenya

Abstract

Small and medium size enterprises development cause the need of admission to suitable and usable funding to the cited constraints that are most often used by the SMEs. In rural areas there is continued lack of financial services in Kenya in a sustainable basis which has been attributed to various deficiencies that characterize the operating environment. To examine the effect of asset micro-leasing on access to capital and income by Small and Medium Enterprises in Kenya (SMEs) a study was carried out. the study more specifically was sought to determine the effect of loan size on access to capital and income by Small and Medium Enterprises in Kenya; also the study was to look on the security in matters of accessing the capital and income by Small and Medium Enterprises in Kenya ,the effect of interest charged was also on the study findings on access to capital and income by Small and Medium Enterprises in Kenya the last thing on the study was to examine the outcome of SME product and service range on access to capital and income by Small and Medium Enterprises in Kenya SMEs. The Nairobi County government has all the scheduled SMEs in Nairobi. A semi-structured questionnaire was used at the grounds of the participant SMEs, using an administered questionnaire. Central tendencies were shown by the Descriptive statistics for example the mean and measures of dispersion such as the standard deviation. It was established that loan size also influences the Access to capital and income to a large extent. It can also be gathered that collateral requirement affects the choice of Access to capital and income by SMEs in Nairobi County. It is notable that the Interest charged on loan and service influences the Access to capital and income most remarkably due to the interest charges, the prepayment charges, the service tax and the loan processing charges. Moreover, the product and service range of SMEs in Nairobi County can be deliberated to be significant in the choice of Access to capital and income, among the key aspects of which include ; Enhance in profitability, increase in stock levels ,increase in sales and increase in retained earnings.