| dc.description.abstract | The ability of firms to optimally exploit investment opportunities may crucially depend
on the level of financial constraints that they face. Access to finance is commonly
identified as the key factor holding small and medium enterprises (SMEs) back from
growing at their full potential. Finance providers and the government fail to tackle this
issue effectively. The specific characteristics of SMEs, namely their smaller size, greater
likelihood of bankruptcy, greater operational flexibility making easier the substitution of
assets, and the more opacity of information that aggravates the problems of asymmetric
information, explain why the creditors consider too risky their investment in smaller
firms. The study used primary data sources in gathering data for analysis. The primary
data source was semi-structured questionnaires. A questionnaire is a research instrument
consisting of a series of questions and other prompts for the purpose of gathering
information from respondents. Questionnaires was considered given that they are cheap,
respondents are given time to fill-in the questionnaires, do not require as much effort
from the interviewer as verbal or telephone surveys, and often have standardized answers
that make it simple to compile data. The study findings established that table banking
also improves SMEs investment decisions as it reduces huge savings on cost of
construction of bank premises and leasing costs than when SMEs are using the Agency
premises. It also cuts on human resource expenses. The SMEs do not have to employ new
staff to manage the agency and the cost of training if any is to the bare minimum. It
further, saves on equipment like furniture and computers. Additionally, the convenience
of access to banking services and the extended hours that the banking agencies work is
attractive features to the customer. This also helps increase SMEs‟ revenue will
minimizing costs. The study recommends that the government reduces the period of
obtaining the legal documents in adopting table banking. The government should support
the program more often and reduce the high compliance costs, bureaucracy in registration
and high cost of taxation. Other areas that the study recommends include the government
dealing with the cumbersome laws and regulations, corruption and illegal permits and
licenses. The study recommends that regulations be efficient to enable more SMEs to
embrace table banking service. The study further recommends that SMEs should fully
embrace table banking through adoption of improved technology for information security
to make it more reliable to the customers. This will increase volume of transactions
which will lead to investment decisions. Based on the findings and conclusions presented
above, the study recommends that SMEs should cushion their table banking from certain
costs such as insurance costs, cash in-transit or premise setup costs. This will enhance
performance of table banking. Besides, capacity of table banking in providing services
can be enhanced by SMEs ensuring that table banking have enough float that can serve
more client in order to mitigate clients disappointment and increase the number of
customers. They can do this by advancing credit to their table banking. In addition,
SMEs should educate and regulate their table banking to ensure uniformity in service
delivery so as to enhance customer confidence in table banking. The study recommends
that customers should be enlightened on the operation of table banking in order to
enhance their confidentiality. Additionally, the study recommended that frequently
trained on the operation process and policies to eradicate occurrence of error and mistake that are highly hindering penetration of table banking. | en_US |
