Effects of microfinance services on the performance of small and medium enterprises in Kenya
TL;DR: In this paper, the effects of micro-finance services on the performance of MSMEs using an explanatory research design was reviewed. And the authors concluded that increasing provision levels of micro finance will result in increased performance of micro enterprise.
Abstract: The Micro, Small and Medium Scale Enterprises (MSMEs) sector in Kenya has grown tremendously over the last two decades but its growth is characterized by low productivity and survivalist enterprises. The sector is however very strategic in providing future employment for the economy. This paper reviews the effects of microfinance services on the performance of MSMEs using an explanatory research design. The study targeted 429 MSMEs registered by the Kiambu Municipal Council and sampled 270 enterprises. The study utilized multiple regression analysis set draw inferences on the study using SPSS statistical package. The study found access to savings schemes, managerial training and loan grace period to be statistically significant in determining the performance of MSMEs. This study concludes that increasing provision levels of micro finance will result in increased performance of micro enterprise. The study makes recommendations for microfinance service providers and policy development partners.
Key words: Microfinance, MSMEs, enterprises, performance, financial services.
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TL;DR: In this paper, the authors explore new evidence about financial innovation in small and medium enterprises (SME) financing impact on SME development in Bangladesh from 1985 to 2016, and propose a model to evaluate the impact of financial innovation on SMEs.
Abstract: With this study, we try to explore new evidence about financial innovation in small and medium enterprises (SME) financing impact on SME development in Bangladesh from 1985 to 2016. To bring insigh...
36 citations
Cites background from "Effects of microfinance services on..."
...Capital adequacy and revenue maximization are positively correlated (Rahmat and Maulana 2006; AkotoSampong 2011; Fauster 2014; Irene, Charles, and Japhet 2015)....
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Dissertation•
01 May 2017
TL;DR: In this paper, a research project submitted to the Department of Economic Theory in Partial Fulfillment of the Requirement for the Award of the Degree of Masters of Economics in Policy and Management, of Kenyatta University July, 2017
Abstract: A Research Project Submitted to the Department of Economic Theory in Partial Fulfillment of the Requirement for the Award of the Degree of Masters of Economics in Policy and Management, of Kenyatta University July, 2017
10 citations
TL;DR: The MAL-ED South Africa, biomedical research project, had positive effects on tangible and intangible assets that compose the sustainable livelihoods of community-based fieldworkers, however, the field workers expressed the need to acquire social skills to enable them carry out their duties more efficiently.
Abstract: Researchers involved in biomedical community-based projects rarely seek the perspectives of community fieldworkers, who are the ‘foot soldiers’ in such projects. Understanding the effect of biomedical research on community-based field workers could identify benefits and shortfalls that may be crucial to the success of community-based studies. The present study explored the perceptions of community-based field workers on the effect of the Etiology, Risk Factors and Interactions of Enteric Infections and Malnutrition and the Consequences for Child Health and Development Project" (MAL-ED) South Africa on their tangible and intangible capital which together comprise sustainable livelihoods. The study was conducted in Dzimauli community in Limpopo Province of South Africa between January-February 2016. The sustainable livelihoods framework was used to query community-based field workers’ perspectives of both tangible assets such as income and physical assets and intangible assets such as social capital, confidence, and skills. Data were collected through twenty one individual in-depth interviews and one focus group discussion. Data were analysed using the Thematic Content Analysis approach supported by ATLAS.ti, version 7.5.10 software. All the field workers indicated that they benefitted from the MAL-ED South Africa project. The benefits included intangible assets such as acquisition of knowledge and skills, stronger social capital and personal development. Additionally, all indicated that MAL-ED South Africa provided them with the tangible assets of increased income and physical assets. Observations obtained from the focus group discussion and the community-based leaders concurred with the findings from the in-depth interviews. Additionally, some field workers expressed the desire for training in public relations, communication, problem solving and confidence building. The MAL-ED South Africa, biomedical research project, had positive effects on tangible and intangible assets that compose the sustainable livelihoods of community-based fieldworkers. However, the field workers expressed the need to acquire social skills to enable them carry out their duties more efficiently.
7 citations
Cites background from "Effects of microfinance services on..."
...This supports the argument that lack of assets among the rural poor reduces their access to credit [22]....
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...livelihoods [22] and rely on their accumulated assets as collateral when they apply for loans from micro-finance...
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Posted Content•
TL;DR: In this paper, the impact of access to formal credit on enterprise performance has been investigated, showing that firms that are credit constrained have significantly lower output per worker, capital per worker and investment in fixed assets for expansion compared to those that are not credit constrained.
Abstract: The main focus of this study is to ascertain the impact of access to formal credit on enterprise performance. The study uses Nigerian Enterprise Surveys data for 2010 to construct a direct measure of credit constraint. From propensity score estimations, the results show that access to formal credit matters and has a significant impact on enterprise performance indicators. Firms that are credit constrained have significantly lower output per worker, capital per worker, employment of labour and investment in fixed assets for expansion compared to firms that are not credit constrained. This is more pronounced for women-owned enterprises after adjusting for bias in the estimations and controlling for sampling weights. This suggests that one way to support the growth of enterprises in Nigeria is to make access to formal credit less stringent. Also, government and monetary authorities should support credit expansion policies for medium and small enterprises in Nigeria.
6 citations
References
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TL;DR: In this paper, the authors evaluated the effect of provision of micro finance on the performance of youth micro enterprises under K-Rep program in Kisii County, Kenya and concluded that micro finance has a significant effect on the youth micro enterprise performance.
Abstract: Micro and small Enterprises (MSEs) sector contributes 20% to the GDP of the Kenyan economy. The vision of micro finance is to promote the growth of micro enterprises. In pursuit of this vision, the rapid growth of Micro finance institutions (MFIs) has made MSEs access to credit more than doubled from 7.5% in 2006 to 17.9% in 2009. Despite this increase, a recent study has shown that over 50% of MSEs continue to have a deteriorating performance with 3 in every 5 MSEs failing within months of establishment. This brings to question the effectiveness of the role of micro finance in promoting growth of micro enterprises. The objective of this study was therefore to evaluate the effect of provision of micro finance on the performance of youth micro enterprises under K-Rep program in Kisii County, Kenya. The study employed a cross sectional survey design. A sample of 86 youth micro enterprises was selected from a population of 110 youth micro enterprises using simple random sampling technique. Primary quantitative data were collected by use of structured questionnaires and analysed by use of descriptive statistics, multiple regression analysis and Pearson correlation coefficient. The empirical results revealed that loan had the largest significant effect on performance of micro enterprises with a beta coefficient of 0.385, followed by training in micro enterprise investment with a beta coefficient of 0.281 and Savings mobilization had the least but significant effect with a beta coefficient of 0.272. Based on the research findings, the study concludes that provision of micro finance has a significant effect on the performance of youth micro enterprises in Kenya. Therefore provision of micro finance to the youth to engage in micro enterprise activities will help spur economic development and alleviate youth unemployment, in line with Kenya’s vision 2030.
Key words: Micro finance, youth micro enterprises, performance.
50 citations
"Effects of microfinance services on..." refers background or methods in this paper
...Simeyo et al. (2011)’s study revealed that loan provision, training and saving mobilization had the largest significant effect on performance....
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...This analysis was based on the Simeyo et al. (2011)’s model which is specified as follows:...
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...This analysis was based on the Simeyo et al. (2011)’s model which is specified as follows: Micro enterprise performance = ƒ (Loan, Savings mobilization and Training) Thus, the model ROA = α +β1LS + β2SM + β3MT + ε…....………….1 Where, ROA – Micro enterprise performance, measured by growth in ROA, α –…...
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TL;DR: This chapter discusses how to Plan and Control the Production/Operations System and the importance of knowing your market and how to Study and Analyse Production/operations Work.
Abstract: Introduction and Foreword - PART 1 PRINCIPLES OF THE PRODUCTION/OPERATIONS MANAGEMENT (POM) TASK - Production/Operations in a Small Business - Analysis of the Production/Operations Process - PART 2 MAJOR DETERMINANTS OF THE POM TASK - Getting to Know Your Market - Developing and Reviewing Products and Services - Defining and Determining Capacity Requirements - PART 3 THE PLANNING, CONTROL AND MANAGEMENT OF THE POM TASK - How to Plan and Control the Production/Operations System - Functions of Inventory and its Control in Production/Operations - How to Study and Analyse Production/Operations Work - Purchasing - Payment Systems
30 citations
"Effects of microfinance services on..." refers background in this paper
...As a result, their management style is likely to be more intuitive than analytical, more concerned with day-to-day operations than long-term issues, and more opportunistic than strategic in its concept (Hill, 1987)....
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Posted Content•
TL;DR: In this article, the authors found that micro-finance has positive impact to improvement of MSE's performance indicated by sales; the difference in regional characteristic of the MSE is also play role in determining its business scale.
Abstract: This study finds that microfinance has positive impact to improvement of MSE’s ferformance indicated by sales; the difference in regional characteristic of MSE is also play role in determining its business scale. Since doubling amount of loan has negative impact to the performance, it’s very important to allocate the loan to the productive activities, such as investment, to improve the business opportunity.
27 citations
"Effects of microfinance services on..." refers background in this paper
...Rahmat and Maulana (2006) researched on the Impact of Microfinance to Micro and Small Enterprise’s Performance Indonesia....
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Dissertation•
01 Jun 2015
TL;DR: In this article, a one years retrospective hospital-based patient chart review study was conducted from January 2013 to December 2014 at Zewditu Memorial Hospital, where a total of 3,488 deliveries attended at Zwuditu Memorial Hospital among the total deliveries 250 had their pregnancy complicated by PIH.
Abstract: Background: Preeclampsia refers to a syndrome characterized by the new onset of
hypertension and proteinuria after 20 weeks of gestation in previously normotensive women.
Eclampsia refers to the development of grandmal seizures orcoma in a woman with gestational
hypertension or preeclampsia.
OBJECTIVE: The objective of this study wasto determine maternal and perinatal out comes of
pregnancies complicated by preeclampsia and eclampsia in women delivering in Zewditu
memorial hospital
METHODS: A one years retrospective hospital based patient chart review study was conducted
from January 2013 to December 2014 at Zewditu Memorial Hospital
RESULTS: During the study period January 2013 to December 2014 where a total of 3,488
deliveries attended at Zewuditu Memorial Hospital among the total deliveries 250 had their
pregnancy complicated by PIH. Two hundred fifty women among the total deliveries (7.2%) had
their pregnancy of gestational HPT 41(16.4%) mild pre eclampsia 80(32%) sever preeclampsia
17 (6.8%) eclampsia of all deliveries.
Prenatal outcome for the various type of PIH were 29 prenatal deaths among all deliveries of
hypertensive patient 19 (24.1%) was IUFD and 10 (12.7%) still birth which yielded prenatal
mortality rate of 207/1000 births
CONCLUSIONS: In low and middle-income settings, pre-eclampsia/eclampsia issignificantly
associated with maternal death, prenatal death, preterm birth and low birth weight, so early
recognition and management of mothers with PIHis an important instrument to reduce the
case.
9 citations