| dc.description.abstract | The existing knowledge on the factors that can enhance the likelihood of rural women Micro and Small Enterprises (MSEs) to access credit from banks is inconclusive. This limits the theoretical and practical robustness of the existing literature on small business finance. To address that concern, the study adopted an extended resource based theory. In this framework, accessing credit was considered as a new source of finance for women MSEs. Consequently, it was assumed that rural women entrepreneurial orientation was an important determinant of obtaining credit from financial institutions.
The study was to determine the factors which influence the access to credit from Women Enterprise Fund by women enterprises. A study was undertaken in Kitui County for 105 women operating various types of businesses ranging from trading in tangible products to services like salon beauty therapy. The review of literature included practices in other parts of the world where women enterprises have been known to thrive. Much was heavily borrowed from West Africa and Southern America. The review of literature related bank practices in relation to lending and emergence of Non-hank financial Institutions. Women Enterprise Fund was primarily established in 2007 to help fund women in Small and Medium enterprises who were thought to be disadvantaged due to skewness by financial institutions.
Data analysis was done to present the findings where statistical methods were employed where it was found that over XO percent started business by bank loans. The study reviewed that majority started businesses with Ksh 40,000 and below. This was as a result of borrowing behavior where borrowers preferred to repay loans within a year. Collateral security has taken a form of group co-guarantee instead of charging family assets. Recommendations were made which included government intervention to reduce interestrates as well training of women (In financial management and adult education, There was concern on existing policy of WFF distribution as more were not aware of the fund. There is need for expansion to reach rural areas. Despite early challenges the fund has contributed to more business growth and nvw startups.
Some of the recommendations rnade by women in enterprises were related to fundamental other than technical aspects of the economy. Strong recommendations were made on the need to expand the credit access to women especially in rural areas where there are many disadvantaged lot due to harsh economic conditions explained by unreliable rains and poor road network. Further research was recommended to study 011 the reasons for higher business collapse and persistent loan default ,among women in business. Gender mainstreaming and equality in the society should be emphasized as all contribute positively toward economic development. | en_US |
