Effect of services offered by microfinance institutions on performance of micro and small enterprises in Kariobangi light industry in Nairobi,Kenya.

Abstract

Micro and Small Enterprises (MSEs) are of great importance because of their role in the economic growth and poverty reduction in many countries. However, many studies carried out on these enterprises reveal that they are faced with a number of challenges including access to finance despite the numerous financial institutions available. This study assessed the effect of services offered by Microfinance Institutions (MFIs) on the performance of MSEs in Kariobangi Light Industry Nairobi, Kenya. This study was conducted in Kariobangi Light Industries, in Nairobi County and targeted operators of MSEs. The specific objectives of this study were; to establish the effect of MFIs’ saving services on the performance of MSEs in Kariobangi Light Industry, to establish the effect of MFIs’ loan services on the performance of MSEs in Kariobangi Light Industry and to investigate the effect of MFIs’ training services on the performance of MSEs in Kariobangi Light Industry.These objectives sought to answer the following questions: what is the effect of MFIs’ saving services on the performance of MSEs in Kariobangi Light Industry?What is the effect of MFIs’ loan services on the performance of MSEs in Kariobangi Light Industry? and, what is the effect of MFIs’ training services on the performance of MSEs in Kariobangi Light Industry?The study adopted descriptive research design targeting a complete census of 210 MSEs. Primary data was collected using structure questionnaires while secondary data was collected from relevant literature. The study used self-administered questionnaires to collect primary data from the respondents. Data collected was analyzed both descriptively and statistically. Quantitative data was analyzed using descriptive statistics such as frequencies, modes, means and standard deviations.