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Demand Side Factors Influencing Bank Lending To Women In Nairobi County: Case of Kawbo Women Entreprnuers.

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dc.contributor.author Mwakale, Nancy Mkamboi
dc.date.accessioned 2019-01-11T09:30:00Z
dc.date.available 2019-01-11T09:30:00Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4145
dc.description A Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters of Business Administration en_US
dc.description.abstract The purpose of this study was to investigate demand side factors influencing bank lending to Women entrepreneurs in Nairobi County. The study was guided by the following study objectives: To establish how owner characteristics influences bank lending to women owned enterprises. To assess how owner characteristics influences bank lending to women owned enterprises. To examine to what extend business relationships influences bank lending to women owned enterprises. To assess how the market failure attributes influences bank lending to women owned enterprises. A descriptive form of research design was adopted. The sampling frame comprised of different business sectors of women entrepreneurs at Kenya Association of Women Business Owners, KAWBO. The sampling technique used was stratified random sampling and the data collection instrument was the questionnaire which was used to obtain primary data from the field. The researcher visited the KAWBO head offices in Lavington (Nairobi) and engaged in the conversation with the management to seek approval and clarify the key objectives as well as the significance of the study. Data analysis included both descriptive; means, standard deviations, percentages, kurtosis and skewness. And inferential statistics which entailed regression analysis, correlation coefficients. All data analysis was performed using the SPSS. The study findings were presented in the form of tables and figures. The findings of the study were to a large extent similar to existing literature on the topic of women based Lending to Women. The result of the study in relation to the effects of firm characteristics on Lending to Women established that years of operation of the firm, number of employees, initial capital and line of business operation, all impacted on the accessibility of bank financing to the women. The findings on the third research question indicated that the financial ratios such as quick ratios, debt ratios, equity to assets ratio (and other details of financial statements) influenced how the bank extended lending to the women owned and operated business enterprises. It was revealed that firms which had closer social ties and longer durations of operating with their respective bank partners benefited from relatively lower borrowing rates. Furthermore, nearly 45% of the women entrepreneurs had organized and entered into loan contracts with their lending partners. The only drawback was that most women entrepreneurs indicated they felt banks could rarely lessen the stringent loan agreement once entered into. In the last research question, the results conformed to existing findings that market failure affected Lending to Women entrepreneurs in an inverse manner. Majority of the respondents also indicated that banks had hidden charges which they were not informed during the signing of the contract. Banks also had much emphasis on the potential to repay the loan than the need to finance the presented project. Collateral arrangements were additional requirements which hindered women accessibility to bank financing. The study concludes that owner characteristics have a positive influence on Lending to Women in business. The further concludes that frim characteristics positively impact lending to women entrepreneurs. Particularly, firm features such as age of the firm, capital, business sector, social capital, finance ratios affected Lending to Women on a large extent. The business owner –lender relationship and bank lending to women were positively related. Specifically, factors such as banking durations, social ties, and length of partnership among other relationship based variables impacted on the extent of credit accessibility by women from the banks. Market failure negatively impact on lending to women since practices such as stringent lending policies, unfavorably terms of credit and hidden costs of credit hindered majority of women entrepreneurs from accessing bank loans. The study recommends that women in entrepreneurs should acquire necessary skills and knowledge as this will help improve their business performance and also improve credit availability. Alternatively, women entrepreneurs are encouraged to do their best to maintain a sound financial statement as this will help reduce the perceived high risks in lending to them. Women entrepreneurs should try to develop a relationship with the potential lending bank and/or the loan officer over time. Lastly, there is a clear signal for policy makers to create conditions for a favorable environment for stimulating the sources of external lending to women in Kenya. This study majorly focused on the effects of demand side factors on women owned small business bank- lending; owner characteristics, firm characteristics, relationships, and market failure. As a result, the findings can only be generalized based on the four variables. In future, there is need to conduct further studies with a different population of interest, more so, the youth run business enterprises. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Demand Side en_US
dc.subject Bank Lending en_US
dc.subject Women en_US
dc.subject Nairobi County en_US
dc.subject Kawbo Women Entreprnuers en_US
dc.title Demand Side Factors Influencing Bank Lending To Women In Nairobi County: Case of Kawbo Women Entreprnuers. en_US
dc.type Thesis en_US


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