Factors influencing access to credit facilities by women entrepreneurs in Karachuonyo sub-county; Homa bay county.
The purpose of this study was to investigate factors influencing access to credit facilities by women entrepreneurs in Karachuonyo Sub County. This was because different surveys on the status of entrepreneurship in the area indicated that these initiatives were doing poorly due to absence of sufficient funds. The study was therefore guided by the objectives, to evaluate how interest rates, collaterals, repayment history and credit processing procedures influence access to credit facilities by women entrepreneurs in Karachuonyo Sub County. The study was grounded on the basic assumptions that the final sample drawn for the study would reflect the key features of the target population; respondents would be willing to give information honestly and objectively and that the data collection instruments would be valid and reliable in measuring what they purported to measure. The study being descriptive in nature, descriptive research was adopted. It targeted a population of 1908 women entrepreneurs in small and medium enterprises, from where a sample size of 191 respondents was drawn. Data was collected using questionnaire, pretested before the actual data collection in order to establish its effectiveness. Data analysis was done using descriptive statistics in the form of frequencies and percentages. The study findings revealed that the key study variables that informed this work, in a great measure, were found to have had significant influence on access to financial services by small business holders in Karachuonyo Sub County. Cost of credit took the form of charges that generally make it intricate for small business entrepreneurs to access funds from financial institutions. Finally, the study recommends that useful measures to be embraced by several stakeholders in different ways. To begin with, the government should strengthen fiscal policies promoting growth of small business entrepreneurs, both for those nursing business ideas and those already in different engagements. Besides, financial institutions should also tailor their products to suite the financial requirements of small business entrepreneurs. Moreover, the entire financial sector should develop in house training policies geared towards equipping the beneficiaries with credit management skills. Lastly, the government in its quest to address issues of unemployment and poverty eradication should formulate training policies that integrate entrepreneurship at all levels of learning in both formal and informal arrangements.
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