Role of Credit Access Program on the Performance of Women Owned MSES Incubated at KIRDI

Abstract

Women owned Micro and Small Enterprises (MSEs) are a source of employment and wealth creation in most of the world economies and Kenya not an exemption. However, the survival rate of the women owned MSEs is minimal. The main objective of the study was to evaluate the role of credit access program on the performance of women owned MSEs which have been incubated at KIRDI. The study was a survey study design. The target population was 259 MSE women entrepreneurs who have graduated from KIRDI business incubation programs. The researcher did a census since it was appropriate for this study and used questionnaires to collect qualitative and quantitative data. The study analyzed data using descriptive and inferential statistics through Correlation and regression of variables. Results were reported through tables and figures. Statistical Package for Social Sciences (SPSS) was used to aid analysis of data. Data was analyzed and presented using descriptive and inferential statistics. The findings revealed a positive and significant relationship between credit access program and performance of women owned MSEs incubated by KIRDI (β=0.348, p=0.000). The study concluded that business incubation support programs simplified into incubator training and development, business development services, credit access program and technology absorption positively and significantly influenced the performance of women owned MSEs incubated at KIRDI in Nairobi. The study recommends that the government should consider looking towards setting a single window to manage business incubators all over the country and to coordinate the activities of all institutions and companies that are in the process of incubating new businesses. Keywords: Credit access, Women owned MSEs, Business performance, Business incubation, KIRDI

Sustaining Family Businesses through Business Incubation: An Africa-Focused Review

“…Kinya et al (2018) also reported the performance evaluation processes that Kenyan incubators undergo to assess how they support entrepreneurial ventures. Likewise, other studies examined the impact of credit access programs on the performance of women-owned micro and small enterprises incubated at the Kenya Industrial Research and Development Institute (KIRDI) (Waweru et al 2022). In Rwanda, family business formation has its roots in a quest to find economic opportunities among the marginalised communities in a post-conflict era.…”

“…Some evidence equally suggests that family businesses can benefit from incubator services. It is claimed that incubators help entrepreneurs gain credibility (Waweru et al 2022) and build credible networks that help firms leverage internal and external network resources for business success. Several researchers have also claimed that business incubators serve as vehicles for small business development (Ojiagu and Ezemezuo 2023).…”

“…Various nations adopt diverse policy positions regarding business assistance and their approach to addressing societal disparities. For example, in Kenya, the government introduced the Kenya Industrial Research and Development Institute (KIRDI) in July 2006 under the Ministry of Industrialisation (Waweru et al 2022) and the implementation of the National Business Incubation Association (NBIA) as a government policy initiative to support entrepreneurs in Nigeria (Obaji et al 2014). Therefore, it is imperative for governments to endorse policies that foster gender equality, particularly in business settings where disparities in participation are a pressing issue.…”

“…The incubation strategy began being used in the United States of America in the 1950s as government intervention to curb consistent start-up failures (Zhou and Zondo 2023). It has been adopted globally to address small business mortality problems (Waweru et al 2022) at the formative stages. They fulfil these tasks by furnishing entrepreneurs with essential resources, mentorship, and networking avenues to cultivate their enterprises (Meru and Struwig 2011;Msimango-Galawe and Hlatshwayo 2021).…”