Abstract: Small and Medium Enterprises’ performance is crucial in the economy. It is a source of employment to over 55% Kenyan and contribute 22% of Gross Domestic Product. However, in every five Small and Medium Entrepreneurs three fails within the first three years. Some of the symptoms include lack of sufficient finance, poor business knowledge and wrong investment decisions. There this study investigated the effect of credit on the performance of small and medium enterprises in Kericho County, Kenya. Descriptive survey research design was used with target of 395 SMEs enterprises in Kericho where a sample of 199 SMEs was selected using stratification random sampling technique. Questionnaires were used for collecting data from the SMEs. The data was evaluated in standard deviation and means using descriptive statistics. It also used multiple regression analysis to calculate inferential statistics. The findings indicated that SMEs were able to benefit from ease of access and flexible evaluation of loan provided by MFI. The results also revealed that group loan and asset funding were the main financial support in access to financing for growing SMEs. Credit finance had positive significant effect on the performance of SMEs (P<0.05). The study concluded that financial support in terms of credit, savings, training and insurance had positive significant effect on the performance of SMEs in Kericho County. The study recommended that MFI should consider business proposal-based financing to enable start-ups to gain more access to credit.
Keywords: Credit, SME Performance.
Title: EFFECT OF CREDIT ON PERFORMANCE OF SMALL AND MEDIUMSENTERPRISES IN KERICHO COUNTY, KENYA
Author: Kirui Michael Kipkorir, Prof. Charles Tibbs
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 11, Issue 1, January 2023 - March 2023
Page No: 257-262
Research Publish Journals
Website: www.researchpublish.com
Published Date: 30-March-2023
