Effects Of Table Banking On Performance Of Micro, Small And Medium Enterprises (Msmes) In Kiambu County

Abstract

Considering critical role of financing, entrepreneurs have resolved to informal financing following the challenge of not being able to access credits from the formal financial institutions. Among the key reasons, why entrepreneurs are resolving to use informal financing option is financial independence. Most of the informal financing options are more convenient to the local women entrepreneurs as opposed to the formal financing options. This study assessed the effectiveness of table banking on the performance of Micro, small and medium enterprises in Kiambu County, Kenya. The study objectives sought to investigate the effect of table banking on the growth as well as the performance of MSMEs as well as explore the determinants of performance of MSMEs. A sample of 381 individuals from table financial gatherings was chosen utilizing basic arbitrary examining technique. Information was gathered utilizing an organized specialist regulated poll and examined utilizing SPSS programming applying illustrative and inferential procedures. Discoveries show that larger part of people running MSMEs in Kiambu County are matured 26 – 45 years and are genuinely knowledgeable. Business people are pushed to join groups practicing table banking to empower them spare, raise business capital, to stay away from restrictive prerequisites and methodology in formal monetary foundations and put something aside for their family's needs. Performance of MSMEs was found to be determined by social capital, access to capital and market linkages though by varied strengths. The study, therefore, recommends that the business people ought to oversee and run their social networks expertly to make them a wellspring of incredible help to their MSMEs as far as source of capital and business thoughts, entrepreneurs to have regular training on entrepreneurship, management skills and marketing, and that the government through relevant agencies and development partners should plan to fortify groups’ practicing table banking life span through imperative approaches/policies and administrative/regulatory structures.