Demand side factors influencing accessibility of loans by Small and Medium Enterprises from banks in Machakos County
Date
2020
Authors
Masika, R.
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Publisher
Strathmore University
Abstract
The purpose of carrying out this study was to carry out assess the demand side factors that influence accessibility of credit from banks in Kenya: a case study of SMEs in Machakos town. The researcher chose Machakos town due to fact that it's a prolific trading center in the country and a study conducted by Mbula in 2018 outlined that most SMEs in the town were collapsing due to limitations of funds from banks. The study sought to understand how the demand side factors influence the access to funds. The study was guided by the following objectives; determining how firms characteristics, Entrepreneur characteristics and financial characteristics influence the lending decision by banks. A descriptive research design was adopted to come up with quantifiable data through the use of questionnaires bearing both open and closed ended questions. The target population was 626 registered enterprises but the selected sample size through a stratified sampling technique was narrowed to 63 firms. The Statistical Package for Social Sciences (SPSS) version 20 was used for data analysis. The study data was analyzed for descriptive statistics (frequencies and percentages), while inferential statistics were analyzed for correlation and regression.
Description
Full - text undergraduate research project