Microfinance Factors Affecting Women Group Enterprises in Kericho Town, Kenya

Abstract

This research aims at identifying microfinance factors affecting women group enterprises. The series of microfinance programs and policies were put in place by the government to reduce the rate of poverty by empowering women through access to credit services. Nevertheless, it is evident that women entrepreneurs, especially in developing countries do not have easy access to micro-finance factors for the entrepreneurial activities hence they have low business performance than their male counterparts. The research problem emerged from the need to assess Microfinance Institutions (MFIs) effects on women entrepreneurial empowerment and social capital. The study was of great significance to the women entrepreneurs, the management of microfinance institution, the government and the community at large. The study presented analysis of culture, and deeper understanding of linkages between MFIs and women empowerment. Descriptive research design was adopted basing the study on selected women group enterprises within Kericho town (Kericho County) with a target population of 100 respondents of which 79 of them were sampled. The data was analysed by use of Statistical Package for Social Science. Validity was achieved through pilot study. The findings revealed that credit facility was the main factor which had affected the performance of the enterprise to a larger extend. Conclusions were that women have smaller loan size than men, hence finding it more difficult to get individual group loan that offer larger amounts with more flexibility to grow their business. The study recommended that there is need for expansion of credit facilities so that more women entrepreneurs can grow their businesses. There is also need for microfinance institutions to offer substantial amount of loan to women entrepreneurs and educate them on how to use and manage the loans.