Challenges facing the growth and innovation of SMEs when accessing microfinance credit facilities - case study of Nairobi Central Business District
Date
2020
Authors
Kirimi, A. I.
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Publisher
Strathmore University
Abstract
The objectives of this study were to determine whether SMEs in Nairobi CBD seek credit from microfinance institutions and to find out factors that limit SMEs in Nairobi CBD access to credit from microfinance institutions. This study used a structured questionnaire to collect data from 100 SME owners with businesses in Nairobi CBD who were chosen using purposive sampling. Data was analyzed using Excel and quantitative data was presented in pie charts and bar graphs. In the study it was established that there are various factors that affect access to credit by SMEs which include training, saving, innovation and growth. Challenges that SMEs faced were high interest rates, long duration of loan approvals, lack of space to operate in and market exposure and lack of grace periods accompanied by short repayment periods. It was recommended that micro finance institutions should increase number of savings accounts held by SMEs, financial institutions to act as role models to SMEs, government should encourage innovation and interest rates on credit facilities to be reduced to accommodate SMEs.
Description
Full - text undergraduate research project
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Citation
Kirimi, A. I. (2020). Challenges facing the growth and innovation of SMEs when accessing microfinance credit facilities—Case study of Nairobi Central Business District [Strathmore University]. http://hdl.handle.net/11071/16038