The Impact Of Micro-Credit Institutions Onthe Growth Of Small And Medium Scale Enterprises In Kibuye Market Of Kisumu Kenya

TABLE OF CONTENTS

DEC LARA TI ON ......................................................................................................................... i

APPROVAL ............................................................................................................................... i i

DEDICATION ........................................................................................................................... iii

ACKN 0 WLEDG EMENTS ....................................................................................................... iv

TABLE 0 F CONTENTS ........................................................................................................... v

ABBREVIATIONS .................................................................................................................... x

DEFINiTION OF TERMS AND VARIABLES ....................................................................... xi

ABSTRACT ............................................................................................. xii

CHAPTER ONE ....................................................................................................................... I

1.0 Introduction ........................................................................................................................... I

1.1 Background of the study ....................................................................................................... I

1.2 Statement of the pro b I em ...................................................................................................... 2

1.3 Purpose of the study: ............................................................................................................ 3

1.4 Scope of the study ................................................................................................................. 3

1.4.1 Geographical scope: ........................................................................................................... 3

1.4.2 Content scope ..................................................................................................................... 4

1.4.3 Time scope ......................................................................................................................... 4

I .5 0 b j eel i ve of the study ........................................................................................................... 4

I. 6 Research questions: .............................................................................................................. 4

I. 7 Hypothesis: ........................................................................................................................... 4

I. 8 Significance of the study ...................................................................................................... 4

1.9 conceptual frame1 vorks: ........................................................................................................ 5

CHAPTER TWO: ...................................................................................................................... 7

REVIEW 0 F RELATED LITERATURE .................................................................................. 7

2.0 Introduction .......... : ................................................................................................................ 7

2.1 Theoretical review ................................................................................................................ 7

2.2 review of reI a ted I i terature .................................................................................................... 7

2.2.1 Contributions of MFI' to SME'S ....................................................................................... 7

2.2.2 Challenges faced by SME's to access to micro financing ................................................. 8

2.2.3 Possible solution~ to challenges faced SME's ................................................................. I 0

v

2.2.4 Micro-credit institutions and small scale businesses ....................................................... 10

2.2.6 Village Banking: .............................................................................................................. II

CHAPTER THREE ................................................................................................................ 12

RESEARCH METHODOLOGY: ............................................................................................ 12

3.0 Introduction ......................................................................................................................... 12

3.1 Research Design ................................................................................................................. 12

3.2 The target population: ......................................................................................................... l2

3.3 Sampling procedure: ........................................................................................................... 12

3.4 The sample size ................................................................................................................... 13

3.5 Data collection instruments: ............................................................................................... 14

3.5.1 Questionnaires ................................................................................................................. 14

3.5.2lnterviews: ........ : .............................................................................................................. 14

3.5.3 Observation: ..................................................................................................................... 14

3.5.4 Documentary sources ....................................................................................................... 14

3.7 Validity and Reliability of the lnstrument .......................................................................... l5

3.8 Limitations of the study ...................................................................................................... 15

CHAPTER FOUR .................................................................................................................... 16

PRESENTATION. INTERPRETATION AND DATA ANALYSIS ...................................... 16

4.0 Introduction ......................................................................................................................... 16

4.1 Background information ..................................................................................................... 16

4.2 Business details ................................................................................................................... 20

4.2.1 enterprneurship skills ....................................................................................................... 20

4.2.2 Type of business .............................................................................................................. 21

4.2.3 Business description ........................................................................................................ 22

4.2.4 Length time in business operation ................................................................................... 23

4.3 Loan details ......................................................................................................................... 23

4.3.1 Loan acquisition ............................................................................................................... 23

4.3.2 Loan repayment ............................................................................................................... 23

4.3.3 Solutibns to problems in accessing loans from MFI's ..................................................... 24

4.3.4 Start- up capital ................................................................................................................ 24

4.3:5 Some of the bene11ts derived from MFI's services(loans) ............................................... 25