Influence of Microfinance Provision on Poverty Eradication Among Women Entrepreneurs in Kenya: a Case of Kenya Women Finance Trust Kayole, Nairobi County

Abstract

Women’s role in economic development is crucial to their families and communities. In the dispensation of these roles however, they experience particular hindrances like poverty, unemployment, low household income and certain social societal discriminations that stampede their effective performance. Despite the fact that numerous statistics confirm that women’s economic activities play a crucial role in the development of world economies, most empirical studies have focused on microcredit provision alone as a tool of alleviating poverty among rural women without giving much consideration to other non financial aspects of microfinance such as advisory services, training services and empowerment programs in addressing rural poverty. Hence the purpose of this study was to assess the influence of microfinance provision; microcredit, training services, advisory services and empowerment programs on poverty eradication among women entrepreneurs in Kayole, Nairobi County. The objectives of the study were: to assess the influence of microcredit provision in the performance of women owned enterprises in Kayole, Nairobi County; to investigate the impact of training services provided by KWFT in promoting entrepreneurial growth among women within Kayole, Nairobi County; to examine how advisory services offered by KWFT lead to wealth creation among women entrepreneurs in Kayole, Nairobi County and to establish the relevance of the empowerment programs offered by KWFT to women entrepreneurs in Kayole, Nairobi County in wealth creation and poverty reduction. The study was limited to women entrepreneurs in Kayole, Nairobi County and their enterprises were assessed in light of the microfinance factors offered by MFIs. The target population was 650 women entrepreneurs and 30 KWFT staff members within Kayole. Purposive sampling was used to select the informants for the information that the study required. A sample size of 95 respondents; 65 women entrepreneurs and 30 KWFT staff (at least 10% of the target population) was involved in the study. The study employed descriptive survey method as the research design. Structured questionnaires were used to collect quantitative data. The instruments for data collection were divided as per the variables and objectives to ensure the results were representative and comprehensive. Data was presented using frequency tables. Analysis was done using both descriptive and inferential statistics. In specific, ANOVA, regression and correlation analyses were used with the aid of Statistical Package for Social Sciences (SPSS) Computer software version 21.0. The ANOVA test had a significance of P-value of 0.000 which is less than 0.05 (significance level of 5%) confirming the existence of correlation between the independent and dependent variables. The findings also indicate that the training and advisory services offered by KWFT had positive impact in entrepreneurial development among women and wealth creation which leads to poverty alleviation. The study therefore concluded that microfinance factors such as microcredit provision, training services, advisory services and empowerment programs are essential in promoting entrepreneurial skills among women which enables them to engage in viable businesses that drive poverty away and give them self-reliance and financial freedom. It therefore recommends more awareness on the relevance of microcredit to self employment, education, and training, and skills acquisition for economic empowerment.