| dc.description.abstract | The Micro, Small and Medium Enterprise (MSME) Sector has continued to play an important role in the Kenyan economy. The sector's contribution to the Gross Domestic Product (GDP) has increased from 13.8 per cent in 1993 to about 20 per cent in 2007 Many entrepreneurs have limited ways to find the capital to start a new business. There are many sources to consider, so it is important for an entrepreneur to fully explore all financing options. (World Bank, 2006).
The study involved a survey of the behavioural factors influencing the choice of financing methods by SMEs: a case study of Ruiru municipality. Descriptive research design was applied with questionnaires as the main instrument of data collection from the 3,000 Small and Micro Enterprises within Ruiru Municipality. Data was analyzed using Statistical Package for Social Sciences (SPSS)
The findings identified venture investors and government programs, Micro-finance institutions, bank loan, friends and family and personal savings emerged as the sources of finance most preferred by the SMEs owners during the start of the business which the owners were confident of their efficiency as the right sources during their business operation. Further, the findings indicated fear of failure, past success and failures, friends and what other entrepreneurs were doing as the factors which influenced the SMEs owner's on the choice of finance. | en_US |
