Effect Of Informal Financial Services On Financial Performance Of Micro And Small Enterprises In Nairobi County, Kenya

Abstract

Globally, micro and small enterprises play a vital role in social and economic development of a country through the creation of employment and contribution to the growth of GDP (Gross Domestic Product). Financial access, savings mobilization, and financial literacy are critical for the sustainability and growth small businesses. The purpose of this study was to investigate the effect of informal financial services on the financial performance of micro and small enterprises in Nairobi County, Kenya. The study was guided by the following objectives –to find out the effect of table banking credit access on the financial performance of MSEs in Nairobi County, to investigate the effect of table banking financial literacy on the financial performance of MSEs in Nairobi County, and to evaluate the effect of table banking savings mobilization on financial performance of MSEs in Nairobi County.