The purpose of this study was to examine the factors that affect access to credit by SSE s in Mt. Elgon District. The study addressed four objectives namely; establish the relationship between owner/manager characteristics, business characteristics, SSE performance and belonging to a social group and access to credit from MFIs. The study null hypotheses were derived from the objectives. The study adapted a descriptive survey design. This design was used to determine the nature of an existing state of affairs within the population. The target population was all small scale enterprise operations in Mt. Elgon district. Only SSEs that had existed for more than 2 years were considered totalling around 1200. The target population was stratified into homogenous categories as wholesalers, retailers, and restaurant and service delivery. Samples of 120 SSEs were randomly and proportionally drawn from the population strata. A structured questionnaire was used to collect data. An interview schedule was used to solicit for in depth information from key informants pertaining access to credit by SSEs. Data was summarized and presented using percentages, means and standard deviation chi-square and t- tests were used to establish relationships between categorical and continuous data respectively. Based on the findings of the study, it was concluded that owner characteristics, business characteristics, group membership affects access to credit by SSEs in Mt. Elgon constituency. Owners /mangers should acquire skills adequate to drive the performance of their businesses. The study recommends that SSE owners should be encouraged to form groups which provide social capital that attracts MFI service easily.
Akabueze, (2002), Financing small and medium enterprises (SSEs) The small and medium
industries equity investment scheme. (SMIEIS) option, a seminar paper
delivered at the e-week 2002 at the muson center, lagao between 11-14 Feb.
2002. Available at Nigeria business infor.com
CBS, ICEG and K-REP(1999). National Micro and Small enterprise Baseline survey; survey
Results, Nairobi.
Daniels, Lisa et al. (1995) Enterprise and income in Micro and small Enterprises in Kenya;
Results of a 1995 survey. Genius Technical report No. 92.
Dondo, (1995) Current Informal sector and small scale enterprises development models and
assistance programs in Kenya. Informal sector development models and
assistance programmes in Kenya. (pp 23-37)
Dorothy, M. and Paul, O.P. (1996) Small enterprises: Flexibility and Networking in an African
context. Nairobi,Longhorn Kenya
Government of Kenya (1996) National development plan 1994 – 1996, Nairobi: Government printers,
.
Government of Kenya (2003) National development plan. Nairobi: Government printers.
Horward H.S., Gross I.H. Michael J.R. and blide A. (1999) New business ventures and the
entrepreneur. 5th Edition. Irwin/McpawHill
IFC, (2001). Publication of International Finance Corporation 2001.New York. IFC
Kimuyu, P.K (1999) The African factor in Enterprise structure and performance in Kenya, IPAR Discussion paper 019/99. Nairobi, Institute of policy analysis and research.
Lauren Read, (1998) The financing of small business: A comparative study of male and female business owners . London, Routledge.
Leila, M, Randall, R., Ann-Marie, C. (1996) World Bank lending for small enterprises
1989 –1993. world Bank Technical Paper No. 311.
Macharia, LW (1998) Formal credit financing for small scale enterprises in Kenya: A case study of NGOs and small scale Women entrepreneurs in the garment manufacturing
sector of the textile industry in Nairobi and Nyeri from 1985 – 1996. Unpublished thesis
Ondiege, P.O. (1996) Capital and performance of small enterprises in Kenya. In small
enterprises, Flexibility and Networking in an African context by Dorothy, et al
(1996) pp (161-174).
Ondiege, , P.O. (1995) Informal sector development models and assistance programmes in Kenya. Unpublished thesis
Schell, J. (1996). The entrepreneur magazine small business Answer book: solutions to the 101 most common small business problems. John Wiley and sons Inc. publishers.
Copyright: © 2014 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
