Factors influencing the choice of micro credit in Micro and Small Enterprises in Nairobi, Kenya

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dc.contributor.authorMnondi, M. M.
dc.date.accessioned2026-01-16T12:33:40Z
dc.date.available2026-01-16T12:33:40Z
dc.date.issued2023
dc.descriptionFull - text undergraduate research project
dc.description.abstractMicro, Small, and medium businesses have long been seen as the primary engines of economic growth and equitable development, and they are the driving force behind the economies of many countries. Financing is required to assist these small enterprises in establishing and expanding their operations, developing new goods, and hiring additional employees or expanding their manufacturing facilities. Small firms, on the other hand, has a significantly more difficult time obtaining financing from banks, capital markets, or other credit providers than larger businesses. This is because they may lack collateral, has not been in business long enough to establish a track record, or may not have audited financial accounts like larger companies. The purpose of this study is to find out the factors influencing the choice of microcredit in micro and small enterprises. The key variables of the literature review that were examined in the study were the individual factors, reference group factors and product and brand familiarity factors. According to the research assessment, various obstacles arise when small businesses seek loans, such as microfinance organizations' credit rationing behavior by requiring collateral. The study achieved a 95% response rate. A descriptive research design is adopted in this study. To ensure that the same businesses are not interviewed twice, a simple random sample rotational approach with no replacement was utilized. This guaranteed that the findings are not skewed and that the findings could be applied to other businesses in the area. Questi01maires addressing the three characteristics mentioned were distributed at random to small companies in the area. Regulatory and other statutory organizations should keep an eye on interest rates on loans and advances to ensure that they are affordable for enterprises. Where policies are lacking, they should be implemented to promote the expansion of both microfinance and small companies. Additional talent building, particularly through training and focused support programs with business owners on how to approach microfinance institutions, informational requirements, and working closely with MFIs to provide additional advice and support to the businesses, should be considered by policymakers.
dc.identifier.citationMnondi, M. M. (2023). Factors influencing the choice of micro credit in Micro and Small Enterprises in Nairobi, Kenya [Strathmore University]. http://hdl.handle.net/11071/16025
dc.identifier.urihttp://hdl.handle.net/11071/16025
dc.language.isoen
dc.publisherStrathmore University
dc.titleFactors influencing the choice of micro credit in Micro and Small Enterprises in Nairobi, Kenya
dc.typeThesis
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