| dc.description.abstract | Small and Medium Enterprises are regarded as a panacea for increased micro-economic growth and reduce poverty among the population, however factors that influence performance of these small and medium enterprise in many parts of Kenya are still not clear . Tile purpose of this study was to investigate factors influencing performance of small and medium enterprises in Bungoma South District, Kenya. Specifically the objective were to: to investigate how access to credit ; amount of credit influence; terms of credit repayment and how sources of credit influence performance of the small and medium enterprises in Bungoma South District. This study was conducted through a descriptive survey research design. A two stage simple random sampling method was employed to select one hundred and six from a population of one hundred and forty-five Small and medium enterprises while purposive sampling was done in which managers of the one hundred SMEs were selected as respondents, Structured questionnaires were developed, pre-tested and used for collecting quantitative data for the study from the sampled small and medium entrepreneurs.
Descriptive statistics using frequency distribution, percentages and means were used to summarize data. On the source of credit for running SMEs 82% respondents revealed that they borrowed money from financial institutions, On the availability to credit facilities from lending institutions 84% revealed that the loaning process was too slow, 64% responses cited that the amount of credit was not adequate, 71% found borrowing conditions difficult .The study sought to determine the source of capital for running SMEs, 82% respondents revealed that they borrowed money from financial institutions while 18% indicated that they financed their SMEs using their own capital. On the availability to credit facilities from lending institutions, 84% revealed that the processing given was too slow 64% responses cited that the amount was not adequate while 71 % indicated that it was difficult to meet all the borrowing conditions.lt is recommended that rules on collateral be changed to allow movable and immovable items be used as collateral to ease access to credit, the use of credit rating should be applied so that those with good previous repayments are allowed to negotiate terms of loan repayment finally, lending institutions should ensure adequate training is given to SME managers before disbursing credit to minimise wastage. | en_US |
