Impact of Micro Finance on Small Enterprises

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IMPACT OF MICROFINANCE ON FINANCIAL EMPOWERMENT OF MICRO AND SMALL ENTERPRI ABSTRACT
Microfinance is the provision of savings accounts, loans, insurance, money transfers and other banking services to customers that lack access to traditional financial services, usually because of poverty. It is the provision of financial services to the low income households and micro and small enterprises. The general objective of this study was to investigate the impact of Microfinance on financial empowerment of Micro and Small Enterprises in Kenya. Findings of this research will assist academicians in broadening of the syllabus with respect to this study hence providing a deeper understanding on the impact of microfinance on micro and small enterprises. The research design used for this study was a descriptive research design. According to descriptive research designs certain trends are described and it provides insight on how two variables correlate. 50 micro and small enterprises was considered representative enough considering the limited time frame of the study, financial resources and accuracy, reliability and precision of the information required for the study. Descriptive analysis was used to summarize the characteristics of the respondents. The data was analysed by using statistical package for social sciences (SPSS). The results are presented in Tables of frequency distributions and percentages.

ACROYNMS AND ABBREVIATIONS

MFI - Micro Finance Institution

ROA - Return on Assets

SME - Small and Medium Sized Enterprises

SACCO - Savings and Credit Co-operative

UNCTAD - United Nations Conference on Trade and Development

UNICEF - United Nations Children’s Fund

IOE - Institute of Education

U.K - United Kingdom

CNN - Cable News Network

SPSS - Statistical Package for Social Sciences

KWFT - Kenya Women Finance Trust

SMEP - Small and Medium Enterprise Programme

GDP - Gross domestic Product

MSE - Micro and Small Enterprises

TABLE OF CONTENTS

ABSTACT……………………………………………………………………………………......i ACRONYMS AND ABBREVIATIONS……………………………………………………….i TABLE OF CONTENTS………………………………………………………………………..ii
CHAPTER ONE…………………………………………………………………………………..1
INTRODUCTION………………………………………………………………………………...1
1.1 Background of the Study……………………………………………………………………...1
1.2 Statement of the Problem……………………………………………………………………...5
1.3 Objectives of the Study……………………………………………………………………….7 1.3.1 General Objective…………………………………………………………………………...7 1.3.2 Specific Objectives of the Study……………………………………………………………7
1.4 Research Questions……………………………………………………………………………7
CHAPTER TWO9
LITERATURE REVIEW9
2.1 Introduction……...…………………………………………………………………………….9
2.2 The Effect of Microfinance on the Growth, Development and Sustainability of Micro and Small Enterprises10
2.3 The Impact of Costs That MSEs Incur in Microfinance Activities and Their Effect on the Ability of Microfinance to Empower Them.16 Summary of the Review………………………………………………………………………….18
CHAPTER 319
RESEARCH METHODOLOGY19
3.1 Introduction…………………………………………………………………………………..19
3.2 Research Design19
3.2.1 Variables…………………………………………………………………………………...19
3.3 Location of the Study………………………………………………………………………...19 3.4 Target Population…………………………………………………………………………….20
3.5 Sampling Techniques and sample size………………………………………………………20 3.5.1 Sampling Techniques………………………………………………………………………20 3.5.2 Sample Size………………………………………………………………………………..20
3.6 Construction of Research Instruments……………………………………………………….20 3.7 Pilot...
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