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Factors Affecting Access to Formal Finance by Youth Owned SMEs in Kenya: A Case of Kiambu County

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dc.contributor.author Babu, Patrick Kimani
dc.date.accessioned 2017-11-16T07:46:22Z
dc.date.available 2017-11-16T07:46:22Z
dc.date.issued 2017
dc.identifier.uri http://hdl.handle.net/11732/3465
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract he purpose of the study was to determine the factors affecting financial access to youth owned businesses in the small and medium sized enterprises in Kenya using Kiambu County as a case study. The study was guided by the following research questions; What is the effects of entrepreneur characteristics on financial access among the youth SMEs in Kiambu County, how does lending requirement affect financial access for youth owned businesses in Kiambu County and What is the effect of business characteristics on financial access for youth owned businesses in Kiambu County Descriptive research design was used to carry out the study. The target population was 2,750registered youth SMEs in Kiambu County. Of the registered SMEs in Kiambu County an estimated 2,751 registered SMEs have between 1 and 50 employees. This study employed stratified random sampling design in obtaining sample from the clients. Descriptive statistics was used to analyze data that was collected. Pearsoncorrelation and regression analysis were used to determine how independent variables influences dependent variable. Statistical Package for Social Sciences (SPSS) software was used to analyze the data. Out of 96 questionnaires that were distributed only 57 were filled and returned giving a response rate of 59%.The first objective set to establish effect of business characteristics on financial access for youth owned businesses in Kiambu County. Findings revealed thatmanufacturing industries faces more challenge accessing finance as compared to SME‟s in trading and service industry, smaller SME‟s experience a challenge accessing finance as compared to larger SME‟s, years of business has been around influences access to finance and registered SME‟s are more likely to borrow than non-registered SME‟s. The second objective set to establish effect of lending requirement on financial access among youthSME‟s in Kiambu County. Findings revealed that high interest rate influences access to finance, financial institutions use collateral as security before issuing finance to SME‟s, SME‟s have enough collateral to qualify for a loan and proper maintained and managed financial records and loan repayment period affects SME‟s access to finance. iv The third objective set to establish effect of entrepreneur characteristics on financial access among youth SME‟s in Kiambu County. The findings revealed that respondentsthat gender and networking influence access to finance. In addition, through networking SME‟s are able to improve their performance. SME‟s need more training to access loan and lenders consider education level before offering funds. The study concluded thatmanufacturing sector faces a challenge accessing finance more than SME‟s in trading and service industry, size and age, interest rate, collateral financial record, gender and networking influences access to finance.It was recommended that more research to be done to determine other factors that SME‟s access to finance. Furthermore, this study was based on SME‟s in Kiambu County only it is therefore recommends that a similar research should be done in other counties to determine whether the factors affecting SME‟s access to finance are similar to another. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Access to Formal Finance en_US
dc.subject Youth Owned SMEs in Kenya en_US
dc.subject Kiambu County en_US
dc.title Factors Affecting Access to Formal Finance by Youth Owned SMEs in Kenya: A Case of Kiambu County en_US
dc.type Thesis en_US


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