INFLUENCE OF MICROFINANCE SERVICES ON FINANCIAL PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN KIRINYAGA COUNTY, KENYA

Autori

  • Robert Gitau Muigai Kirinyaga University, Kenya
  • Jane Gathigia Muriithi Africa International University, Nairobi, Kenya

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https://doi.org/10.46827/ejefr.v7i4.1611

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microfinance services##common.commaListSeparator## financial performance##common.commaListSeparator## micro##common.commaListSeparator## small and medium enterprises##common.commaListSeparator## micro-credit##common.commaListSeparator## micro-savings##common.commaListSeparator## business consultancy

Abstrakt

This study sought to ascertain the influence of microfinance services on the financial performance of MSMEs in Kirinyaga County. Specifically, the study sought to determine how microcredit services, micro-saving services and business consultancy services offered by Microfinance institutions influenced the financial performance of MSMEs within the county as operationalized by growth in their sales turnover. The study was anchored on the theories of Information Asymmetry and Financial Intermediation. The study’s target population comprised the MSMEs operating within Kirinyaga County and adopted the descriptive research design. The studied MSMEs were purposively selected from the townships of Sagana, Kerugoya, Kutus, Kagio, and Kagumo. Primary data was collected using structured questionnaires and analysis of the collected data was performed using descriptive and inferential statistical techniques. The results were presented using tables and charts. The study found that all the services offered by microfinance institutions had a positive and significant influence on the financial performance of MSMEs. Effectively, the study recommended that the owner-managers of the MSMEs should have more strategic engagement with the Microfinance institutions in tapping the services extended by them. Further, sustained efforts should be made by policy formulators to promote and strengthen microfinancing in pursuit of Vision 2030.

 

JEL: L10; L20; M10; G20

 

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##submission.authorBiographies##

  • ##submission.authorWithAffiliation##

    Dr. Robert Gitau Muigai holds a PhD in Finance from Jomo Kenyatta University of Agriculture and Technology, Kenya. He is a Senior Lecturer of Finance and Accounting at Kirinyaga University, Kenya with 8 years of teaching experience. He has published widely in the area of Finance and has supervised many students at both Master's and PhD levels. He is also a Consultant in Financial Management.

  • ##submission.authorWithAffiliation##

    Dr. Jane Gathigia Muriithi holds a PhD in Finance from Jomo Kenyatta University of Agriculture and Technology, Kenya. He is a Senior Lecturer of Finance and Accounting at The African International University, Kenya with 8 years of teaching experience. She is also a Consultant in Financial Management.

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Publikované

2023-12-19

Číslo

Diel 7 Číslo 4 (2023)

Sekcia

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