Gender, Credit Access And Small And Medium-Sized Enterprise Performance In Kenya

Abstract

Small and Medium Enterprises (SMEs) are key in employment and wealth creation in Kenya. Nonetheless, their level of operation is sub-optimal due to the challenges they face most notably limited credit access. Access to credit mostly affects female-owned firms since they operate lowrisk businesses, which do not attract equity and financial loans. Besides, most female SME owners lack collateral that is the primary requirement by financial institutions. Using the 2018 World Bank Enterprise survey data, this study aimed at providing insights on the effect of gender, and credit access on the performance of Small and Medium-sized Enterprises in Kenya. From the results of Ordinary Least Square multiple regression, finds of the study revealed that access to credit increased SMEs performance by 141.33% ceteris paribus. Female ownership did not significantly impact firm performance. The study, thus, recommended Small and Medium Enterprises’ empowerment through provision of affordable and accessible credit. Keywords: Gender, credit access, SMEs performance, Kenya.