Influence of micro-credit institutional services on the performance of small scale enterprises at Kapenguria town, west Pokot county, Kenya
The study aimed at determining the influence of micro-credit institutional services on the performance of small scale enterprise. The study was guided by the following objectives: find out the influence of lending by Micro-Credit institutions on performance of SSE; determine the influence of training after funding by Micro-Credit institutions on performance of SSE; establish the influence of business savings after funding by Micro-Credit institutions on SSE performance and assess the influence of insurances services offered by Micro-Credit institutions on SSE performance in Kapenguria town. The study adopted a survey research design for its ability to emphasize on understanding of a complex issues or objects and also its ability to extend experience on added strength to what is already known through previous research and its ability to collect varied responses from the respondents with an aim of properly understanding the issues under study. The study focused on a target population of 233 participants, of which through purposive sampling 4 management personnel of Micro credit institutions were selected, through stratified sampling 44 employees of micro credit institutions were selected and 97 Small Scale Enterprise owners in Kapenguria town through simple random were also selected in the study. The study therefore targeted a total sample of 145 respondents selected from the population. The data collection instrument that was used to collect data from the selected respondents was questionnaires. The researcher also used the test re-test method to determine the reliability and Cronbach’s alpha coefficient to measure the internal consistency of the questionnaire. The data collected was analysed quantitatively and qualitatively using descriptive statistics which involved frequencies, percentages, tables and mean deviations. Findings revealed that the micro credit institutional services to include lending, training, saving and insurance have greatly influenced the performance of the small scale enterprises in Kapenguria town as its impact is felt among the participants. The study concluded that Micro-Credit Institutions should enact regulations that are friendly to SSEs so as not to lock them out from accessing credit. At the same time, they should deal with the problem of nonperforming loans by fully utilizing the services of Credit Reference Bureaus.