| dc.description.abstract | Despite the efforts that have been made by governme
nts and NGOs to provide credit
in
many developing countries, the majority of SMEs in
the informal sector still report
limited access to credit. It is often argued that w
omen are particularly more credit
constrained than men. This study was conducted in o
rder to determine
the factors that
affect the SMEs accessibility to credit to enable t
he relevant authorities develop
interventions that will result in an increased cred
it availability and uptake.
The specific
research question addressed is the factors that det
ermine access to credit for SMES in the
informal sector. In conducting this study primary d
ata was collected. The data collection
took place between August and September, 2014, cove
ring Ongata Rongai Township in
Kajiado County. In total, 155 firms were surveyed.
Descriptive statistical analysis and
Heckman Probit model were applied to analyze the da
ta. Results obtained from a probit
model showed that
women SME owners
are less likely to apply and receive credit, that
women had low access to credit from formal financia
l institutions. Other than gender, the
factors that significantly determine access to cred
it according to study findings are
financial training for the entrepreneur, firm’s tur
nover and length of operation of the firm.
The study suggests the need to initiate a comprehen
sive women empowerment
programme to create more awareness on the availabil
ity of credit facilities, their
conditions and application procedures. It is also i
mportant to create knowledge on the
economic use of credit for the reduction of poverty | en_US |
