Influence of micro-credit finance on the growth of small scale women entrepreneurs in Kenya, A case of Mosocho Division, Kisii Central district
This study sought to explore the influence on micro-credit finance on the growth of small scale women entrepreneurs in Kenya. Influence is the consequences or results of an activity, it is the outcome of an undertaking and therefore it may be positive or negative. The purpose of the study was to find out the influence of micro-credit finance on growth of small scale women entrepreneurs. The study mainly looked at the following areas; Influence that loan procedures have on growth of small scale women entrepreneurs, how the amount allocated to them and repayment period affected them and whether there is relationship between micro-credit finance training and growth of small scale enterprises. The significance of the study was to provide information which should benefit the entrepreneurs by getting the insight into the influence of micro credit finance thus enabling them to obtain credit or avoid it. the research study was based on the theory of 'structural functionalism' by Emile Durkheim (1858-1917)which states that 'all parts of a system should have a significant function in relation to the whole system. this theory is strengthened by another functionalism theory that supplements on the first one and says that the different aspects exist because they have a function. A survey research designs was used to conduct the study. The target population was the small scale women entrepreneurs in Mosocho Division, Kisii central District. The sample study constituted thirty six respondents out of one hundred and twenty entrepreneurs spread over three markets. Simple random sampling technique was used to determine the study sample. A questionnaire was used to collect &ata from the sampled entrepreneurs. Quantitative qualitative analysis was used. The research findings revealed that the small scale entrepreneurs faced problems in operating their businesses. Lack of collateral to access loans came up as a major challenge in the study. The study established that the entrepreneurs did not receive as much loan as they needed and the process involved in accessing loans was lengthy. The study further revealed that the repayment period affected the cash flow into the business. The other major finding was that most of the entrepreneurs had not been trained on basic business management skills and therefore most of them had no focused strategies but operated on trial and error methods. in spite of many challenges, the study found out that most of the entrepreneurs depended wholly on their businesses. They said that they could still take loans even with the high interest rates long as the loans are available. The entrepreneurs seemed positive about the loans they get from the lenders . The study therefore recommends that the government should come up with policies and procedures which can assist the entrepreneurs to acquire loans at low interest rates the study further recommends that training centers should be established which are affordable to impart the knowledge and skills required by entrepreneurs to assist them run their businesses efficiently and effectively. Lastly the study recommends that the government should provide a secure and conducive business environment for the small scale women entrepreneurs as they contribute to economic growth of the country. Further research should be carried out on insecurity, and on the local lending groups to find out their pros and cons in the rural areas.