| dc.description.abstract | Micro credit forms a basis for the realization of the social and economic pillars of
the Kenya government's growth blue print, Vision 2030 (Republic of Kenya, 2008).
Access to micro credit improves the economic status of women and makes them more
empowered in decision making (McCormick and Pedersen, 1996). Micro credit is
essential in promoting growth of small business especially among women. This study
attempted to look at the role of micro credit in promoting growth of small business
among women traders within the Kisumu Central Business District.
The objective of the study was to assess the relationship between access to micro
credit and growth of small businesses among women within the Kisumu Central Business
District. The relationship between access to Micro credit and growth of small business
was formulated as hypothesis and its validity tested. Kisumu Central business district was
chosen as a case for this study due to the number of businesses that are operated by
women as well as the researcher's interest to determine the contribution that micro credit
is making within the Kisumu central business district. Ex post facto design was used
because of its simplicity, ease of administration and ability to gather data from a
relatively large number of cases at a particular time. Classification of small business into
strata enabled the choice of a representative sample that is: hairdressing stores;
seamstresses; food kiosks; hairdressing and clothing and boutique shops; seamstresses
and clothing and boutique shops, retail shops and others (hardware stores, ice producing
and bookshops). Qualitative and quantitative analyses were used to establish essential
facts, perform hypothesis tests and to enable relevant conclusions to be drawn. The
feminist empowerment paradigm by Mayoux (1998a) has been applied in the study
together with the financial sustainability theory and the poverty alleviation paradigm to
show how micro credit programs influence small business operations.
This study reveals that: (i) micro credit has played a significant role to increase
profits, sales and to reduce liability levels among businesses that were sampled; (ii)
treasury bills and premium bonds are the major sources of funding among others
including gifts from well wishers and sale of assets; (iii) the KWFT uses individual and
group solidarity methods to deliver micro credit to its clients; (iv) the procedures and
systems used by KWFT in loan processing are reliable thereby keeping the defaulter rates
low and that; (v) Default arises from calamities and emergency. The study recommends
that its findings be considered to inform effort of new and established micro credit
institutions in Kenya and beyond and that a similar study be carried out in a larger area so
as to establish whether these findings can be generalized to a wider area and also if they
hold in other situations. Also, another study that examines the roles played by the women
groups in ensuring repayment of microcredit alongside the role played by institutional
systems is recommended by the study. | en |
