The influence of informal group based financing on women Micro enterprise growth: a case of Kibera slums Kenya
Kariuki, David K
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The main purpose of this study was to evaluate the role of informal group based financing on women micro enterprise growth in Kenya, more specifically in the Kibera slums in Kenya. The study was guided by the following objectives: - to establish how savings influences women micro enterprise growth in Kenya; to assess how access to credit influences women micro enterprise growth in Kenya; to examine how experience sharing influences women micro enterprise growth in Kenya and to examine how business partnership influences women micro enterprise growth in Kenya. Descriptive method of research was used for this study. Due to limitation in time frame allocated to conduct the research, the research used cluster sampling. Questionnaires were used to collect data from the respondents. Frequency distribution, measure of central tendency and inferential statistics were used to measure the variables of the study and come up with fmdings. In terms of age profile majority of the respondent 45% in the IGBFs were aged between 29 - 39 years and as far as education levels are concerned majority of the respondent 53% were secondary schools graduates within Kibera locality. The Pearson's product moment correlation coefficient values revealed a strong positive and significant correlation between savings and Growth of Women Micro Enterprise (r = 0.4546). coming next are, credit accessibility (r = 0.3157), followed by partnership (r = 0.3003).and lastly, experience sharing (r = 0.3000,). Therefore the analysis above indicates that all the variables are positively and significantly correlated to growth of women micro enterprise in Kenya. The study was able to illustrate that saving is closely related to enterprise growth Saving can therefore be vital to increase the amount of capital to expands ones business. It can be concluded that informal financial sources, especially saving, are a major source of initial capital to women enterprises in Kenya and the IGBFs have consciously supported the saving culture across the board. The use of external finance in group activities is found to have a positive contribution for enterprise growth. Therefore, adequate provision of fmance should be the main element in the development programs of the groups and important stakeholders interested in this informal group fmance sector.