| dc.description.abstract | The objective of this study was to examine the effects of sources of finance on the
performance of Top 100 mid-sized companies in Kenya. Descriptive cross sectional
research design was adopted for this study. The target population for this study were
the 100 SMEs (2013) in Kenya. Simple random sampling was used to select 30% of
the top 100 companies. The sample size was therefore 30 SMEs. Primary data was
collected through the use of questionnaires which were designed based on the study
objective. Data was entered into SPSS and analysed using inferential statistics and
regression analysis. The descriptive results showed that 77% of the firms had used
personal income as a source of financing, 60% used bank loans, 57% used venture
capital, 40% used leasing, 43% used sale of shares, 17% used government loans, and
13% used microfinance. All these sources were used by most firm to a low extent as
financing options. The regression results show that personal income, bank loans,
microfinance, and government loans had weak positive effects while venture capital,
leasing, and sale of shares had weak negative effects on the financial performance of
Top 100 companies in Kenya at 5% level of significance. The study concludes that
the sources of finance do not affect the financial performance of Top 100 companies
in Kenya. The study recommends the need for use of a mix of financing options to
improve the financial performance of organisations rather than reliance on one form
of financing. The study also recommends that the Government should be instrumental
in offering loan facilities for businesses as currently very few mid-sized firms have
used this method of financing. | en_US |
