An Analysis of the factors determining the choice of financing for micro, small and medium enterprises

Abstract

This study investigated the determinants of the choice of financing for Micro, Small and Medium sized enterprises. Data was collected from the Nairobi area with emphasis in the Industrial Area and Mombasa Road due to the concentration of MSMEs within these areas. This research was extensive both in scope and depth and attempted to fill in the gaps in the current literature. The outcomes provide valuable contribution to efforts made by the government, through the ministry of finance geared towards improving accessibility of capital to MSMEs. The government of Kenya and other developmental agencies has identified the need to empower MSMEs emergence and is working towards establishing programs and policies that will improve the accessibility of finance to MSMEs. Lastly, this research made a worthwhile contribution to MSMEs financing surveys and research that are currently ongoing or will be undertaken. This results from the growing importance of MSMEs to the economy of Kenya.