The Relationship between Small Scale Enterprises Performance and Access to Credit from Microfinance Institutions in Mount Elgon Constituency, Kenya

Kiboki, Abraham Kimtai; Sakwa, Maurice; Kiriago, Aloys Nyagechi

doi:10.6007/ijarbss/v4-i9/1174

Cited by 2 publications

(4 citation statements)

References 1 publication

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“…Implementation of entrepreneurial characteristics will help small business improve its performance and it will lead to a greater accessibility to earn the bank loan. This study is also in line with those conducted by Kiboki, Sakwa & Kiriago (2014). Cull and Xu (2005) added that banks tend to allocate funds to firms that have better performance outcomes in China.…”

Section: Direct Effectssupporting

confidence: 86%

“…Hypothesis 3: Business performance has a positive effect on credit access. Regression coefficient = 0.494; tvalue =7.708 > ttable = 1.96 The same result expressed by Kiboki, Sakwa & Kiriago (2014) who found that business performance has a significant effect on credit access. In other words, better business performance will lead to the greater accessibility of external finance compared to poor performance.…”

Section: Sobel Testsupporting

confidence: 76%

“…Some studies (Kung'U, 2011;Fatoki & Asah, 2011;Ogubazhi & Muturi, 2014, Campanella & Serino, 2019 found out that the owner's age/manager has a significant effect on SMMEs's access to the bank loan. According to Kiboki, Sakwa & Kiriago (2014) the mature owners of firms are more likely to access the credit. The effect of entrepreneurs's age on the ability to access the bank credit can be viewed from both creditor…”

Section: 5relationship Between Entrepreneurial Characteristics and Credit Accessmentioning

confidence: 99%

“…There is a significantly negative relationship between entrepreneurial orientation and SMEs ability to access finance in Nigeria (Aminu and Shariff, 2015). Kiboki, Sakwa & Kiriago (2014) stated that the business performance affected access to finance. The performance can be measured by financial and non-financial indicators.…”

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 99%

See 3 more Smart Citations

Impact of entrepreneurial characteristics on credit accessibility: case study of small businesses in West Sumatera – Indonesia

Chandrayanti¹,

Nidar²,

Mulyana³

et al. 2020

JESI

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Currently, the studies on entrepreneurial characteristics do not distinguish the business scales, while different scales of businesses, i.e. small, medium to large scales have their own characteristics. The purpose of this research was to determine whether business performance mediates the impact of entrepreneurial characteristics on accessing credit at small-scale business. In this study, a total of 221 questionnaires was distributed to the respondents of small enterprises entrepreneurs in West Sumatera Province, Indonesia using the method of the purposive random sampling. The hypotheses were tested using survey data from small enterprises that had obtained bank loan. For data analysis, the Structural Equation Model (SEM) was used. Based on the study results, the entrepreneurial characteristics positively affect the business performance, which then positively affects the chances of access to the credit. Ultimately, it was proven that entrepreneurial characteristics affect the access to credit. The research finding highlights the important of the role of business performance in mediating the effect of entrepreneurial characteristics on credit access. Therefore, it is recommended that there should be a strategy to strengthen the entrepreneurial characteristics to improve the small business performance. In addition, the entrepreneurs are recommended to develop and maintain a strong entrepreneurial characteristics.

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Section: Direct Effectssupporting

confidence: 86%

Section: Sobel Testsupporting

confidence: 76%

Section: 5relationship Between Entrepreneurial Characteristics and Credit Accessmentioning

confidence: 99%

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 99%

See 2 more Smart Citations

Impact of entrepreneurial characteristics on credit accessibility: case study of small businesses in West Sumatera – Indonesia

Chandrayanti¹,

Nidar²,

Mulyana³

et al. 2020

JESI

View full text Add to dashboard Cite

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Access to Microcredit Determinants and Financial Performance of Small and Medium Retailing Enterprises in Wajir County, Kenya

Kanyare

Mungai

2017

IJF

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Purpose: The purpose of the study was to establish the effect of determinants of access to microcredit on financial performance of retailing SMEs in Wajir County, Kenya.Methodology: The study adopted a descriptive survey research design. The target population comprised of all the 5000 retailing small and medium enterprises in Wajir County where the units of analysis were the SME owners. The study used stratified random sampling and simple random sampling technique to come up with the sample. The target population was stratified into 6 strata (the 6 sub-counties in Wajir County). Further, random sampling was used to select 146 SMEs from each sub-county. The study used primary data which was largely quantitative and descriptive in nature. The questionnaires were self-administered with the help of two research assistants. The data analysis was undertaken using SPSS Version 20 where the statistics generated included descriptive statistics and inferential statistics.Results: The study findings revealed that savings, meeting the eligibility criterion, loan structuring and some socio economic characteristics positively and significantly affected the financial performance of SMEs in Wajir County.Unique contribution to theory, practice and policy: the study recommended that SMEs should take the initiative to increase the amount they saved so that they could increase their borrowing capacity. The study also recommended that SME owners needed to take the initiative of ensuring that they were all the time able to meet the necessary requirements needed for obtaining loans especially their documentation, business and repayment plans and aim at ensuring that they acquired the necessary collateral. It was further recommended that MFIs needed to ensure that the loan structure presented to SMEs were favorable. The study also recommended that it was necessary for SMEs to expand/grow their asset base so as to increase the ability to repay the loans. They also needed to expand their networks especially within the financial institutions circles so that they could increase the trust the MFIs had on them and for easy considerations for loans.

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The Relationship between Small Scale Enterprises Performance and Access to Credit from Microfinance Institutions in Mount Elgon Constituency, Kenya

Cited by 2 publications

References 1 publication

Impact of entrepreneurial characteristics on credit accessibility: case study of small businesses in West Sumatera – Indonesia

Impact of entrepreneurial characteristics on credit accessibility: case study of small businesses in West Sumatera – Indonesia

Access to Microcredit Determinants and Financial Performance of Small and Medium Retailing Enterprises in Wajir County, Kenya

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