Factors Influencing Access To Credit Facilities Among Small And Medium Entreprenuers In Island Division, Mombasa County

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ABSTRACT

The purpose of this study was to determine the factors influencing credit

accessibility among small and medium entrepreneurs in Island Division,

Mombasa County. The study was guided by the following four research

questions: (i) what are the sources of credit available to men and women SMEs in

Island Division, Mombasa County? (ii) What factors influence credit access to

men and women SMEs in Island Division, Mombasa County? (iii) What

challenges do men and women SMEs face in accessing credit in Island Division,

Mombasa County? and (iv) What strategies could be put in place to enhance

credit access for men and women SMEs in Island Division, Mombasa County?

The study applied women empowerment framework by Sara Hlupekile Longwe.

According to this framework, men and women do not have same access or control

over productive or benefits accruing from them. The descriptive survey design

was used in executing the study. Stratified sampling was utilized in selecting the

respondents for the study. Interview schedules and questionnaires were the main

data collection instruments for the research. Data were analyzed quantitatively

and qualitatively guided by research objectives and research questions. Findings

are presented thematically in form of narratives, frequency tables and percentages.

The study found that banks and micro finance institutions were some of the

institutions that offered credit to SMEs in Island Division. The study findings

indicate that loan acquisition is highly influenced by personal savings and

business assets and/or stock. However, there were challenges facing SMEs in

credit acquisition; these include gender inequalities in control of resources, lack of

collateral, high interest rates, Islamic religious practices, lack of information on

loan qualification criteria and women being asked to bring their

spouses/identification documents. The study found that credit access could be

enhanced by improving terms and conditions for SMEs including fair interest

leading to empowerment and participation of women in economic development of

the country. The study concludes that gender disparities affect credit access

between men and women SMEs. The study recommends that there is need for

credit officers to sensitize SMEs on the opportunities that are available to secure

funding for their business; credit institutions should also review terms and

conditions to allow people from different faiths access credit equitably.

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APA

Research, S. & KANUNDU, E (2021). Factors Influencing Access To Credit Facilities Among Small And Medium Entreprenuers In Island Division, Mombasa County. Afribary. Retrieved from https://afribary.com/works/factors-influencing-access-to-credit-facilities-among-small-and-medium-entreprenuers-in-island-division-mombasa-county

MLA 8th

Research, SSA, and EUNICE KANUNDU "Factors Influencing Access To Credit Facilities Among Small And Medium Entreprenuers In Island Division, Mombasa County" Afribary. Afribary, 27 May. 2021, https://afribary.com/works/factors-influencing-access-to-credit-facilities-among-small-and-medium-entreprenuers-in-island-division-mombasa-county. Accessed 26 Sep. 2022.

MLA7

Research, SSA, and EUNICE KANUNDU . "Factors Influencing Access To Credit Facilities Among Small And Medium Entreprenuers In Island Division, Mombasa County". Afribary, Afribary, 27 May. 2021. Web. 26 Sep. 2022. < https://afribary.com/works/factors-influencing-access-to-credit-facilities-among-small-and-medium-entreprenuers-in-island-division-mombasa-county >.

Chicago

Research, SSA and KANUNDU, EUNICE . "Factors Influencing Access To Credit Facilities Among Small And Medium Entreprenuers In Island Division, Mombasa County" Afribary (2021). Accessed September 26, 2022. https://afribary.com/works/factors-influencing-access-to-credit-facilities-among-small-and-medium-entreprenuers-in-island-division-mombasa-county