The Relationship Between Microfinance Services on Growth of Small and Medium Enterprises in Nairobi County

Abstract

This study set out to investigate the effects of microfinance Institutions services on the growth of small business growth in Kenya. The objective of this study was to examine the effect of the services offered by microfinance institutions; Provision of finance, Training programs, Advisory services and Business idea generation services on the growth of small business. The study used questionnaires to collect data from a randomly selected sample of 145 respondents who were mainly small and medium business owners from Nairobi County. The data collected was then analyzed using statistical software SPSS version 20 and the findings presented in form of charts and graphs. The findings revealed strong evidence that access to microfinance services contributed to growth of small and medium enterprises in Nairobi County, Kenya as depicted by positive beta coefficients measured at 95% significance level. The study therefore recommends Microfinance banks to continue offering their services and to enhance their capacity to support small and medium enterprises for them to achieve growth and expansion. Small and medium enterprises owners are also recommended to seek microfinance services as they will positively contribute to growth of their business. Further the study recommends similar studies to be done in different environments and or using different variables to find out whether these findings hold.