Abstract: Craft industry contributes greatly to the economy of a country for it provides income for not only micro enterprises but also small and medium enterprises. The main objective of the study was to determine the influence of debt financing on growth of craft micro enterprises in Kenya, to determine the influence of retained earnings on growth of craft micro enterprises in Kenya. The study covered the soapstone micro enterprises registered by Tabaka Town Council and the woodcarving micro enterprises registered by Wote Town Council. This study adopted descriptive research designs. The target population for the study constituted all the soapstone micro enterprises in Tabaka Town which are registered by Tabaka Town Council, Kisii County, and all the woodcarving micro enterprises of Wamunyu Location, Machakos County, which are registered by Wote Town Council. From this population of 2334 respondents, a sample of 330 respondents was divided proportionately between the two regions according to the proportion of their craft micro enterprises under study, using stratified random sampling. The study gathered data using a semi-structured questionnaire, and the data collected were analyzed by use of descriptive and inferential type of statistics using the Statistical Package for Social Science (SPSS) version 21.The results were then summarized in tables, charts and graphs. The findings of the study revealed that debt financing has a significant influence on the growth of craft microenterprises.
Keywords: Debt, Craft, Equity, Financing, Growth, Microenterprise.
Title: Influence of Debt Equity Financing on Growth of Craft Micro Enterprises in Kenya
Author: Steve Ondieki Nyanamba, Dr. Florence Sigara Memba, Dr. Willy Mwangi Muturi, Electrin Teresa Maswari
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
Influence of External Equity Financing on Growth of Craft Micro Enterprises i...paperpublications3
Abstract: Micro enterprises together with small and medium enterprises provide employment and income to many people in Kenya. The main objective of the study was to establish the influence of external equity financing on growth of craft micro enterprises in Kenya. The target population for the study constituted all the 2334 craft micro enterprises. The sample frame constituted all the soapstone micro enterprises operating within Tabaka Town and all the woodcarving micro enterprises registered by Wote Town Council. The study used a sample of 330 craft micro enterprises drawn using stratified sampling technique. Data were gathered data using a semi-structured questionnaire after testing it for reliability and validity, and then analyzed by use of descriptive and inferential type of statistics. The ANOVA and multiple regression analysis were used to analyze the data. The findings of the study revealed that, external equity financing (p-value 0.000) has a significant influence on the growth of craft microenterprises. The study recommended that the government should sensitize and encourage the entrepreneurs on to use funds from friends and family members since these are cheap sources because they do not attract interests.
Keywords: Craft, External equity, Financing, Growth, Microenterprise, Tabaka.
Title: Influence of External Equity Financing on Growth of Craft Micro Enterprises in Kenya
Author: Steve Ondieki Nyanamba, Dr. Florence Sigara Memba, Dr. Willy Mwangi Muturi, Electrin Teresa Maswari
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
An Investigation of the Effect of Challenges Encounters Female Entrepreneuria...AkashSharma618775
The participation of females in entrepreneurial activities is such a satisfying ideal that has proven to
convey positive contribution towards economic process. To ascertain this; the subject matter has presented herein.
Such presentation has been done by giving detailed analysis of the effects of challenges encounters female
entrepreneurial taking Malaysia, which is one of the transformed economies as the country of context. There is a
promising growth in entrepreneurial activities in the recent years in Malaysia; yet, this growth has seen to have
many male entrepreneurs leaving females with minimal rate of participation. There are challenges identified,
evaluated and analyzed to be the very reasons that leads to this scenario. The study employed three challenges
called economic, resource and cultural extracted from Isa et al., (2018); the challenges which are henceforth
implemented as independent variables (IVs) of the study. The study has found the significant correlation between
each of these IVs (EoC) and its subject matter; that’s female entrepreneurial (FE) in Malaysia the DV with the
significant levels of 0.026 and 0.012 respectively. The extent of effects was regretted to be 62% within the inverse
correlation of 0.89 to mean that the increase of EoC results to the decrease of FE and the decrease of EoC leads to
the increase of FE. The statistical analytics were measured using SPSS and data were secondarily reviewed from
the study of Hossain et al., (2018). For further researches; an expansion to reach other stakeholders like police
makers and officers of financial institutions has been recommended because, this study has been established on the
mere perspectives and opinions of entrepreneurs and not other stakeholders of entreprenerial activities.
This paper examines whether the long-run relationship between budget and external deficits follows the
tenets of the twin-deficit hypothesis, the Ricardian equivalence hypothesis, the current account targeting
hypothesis, or the feedback linkages. It also evaluates the effects of budget and trade deficits on economic growth.
On a global perspective, these have been in the recent period debated in developed and developing nations. In
contributing to this ongoing debate, the study applied unit root tests, cointegration analysis, a dynamic vector
error correction model and a multivariate Toda-Yamamoto long -run Granger-causality representation using
annual time series data for Kenya from 1980 to 2016. There is evidence of unidirectional causality running from
budget deficit to external deficit in support of the twin-deficit hypothesis. In the long run, budget deficit had
significant positive effects while trade deficit had significant negative effects, on real GDP growth. Overall, the
findings suggest that the authorities should promote policies that upscale fiscal discipline, curb budget deficits for
external stability and long-term economic growth, in Kenya. The evidence underscores the need for more country
specific studies in sub-Saharan Africa.
The supply side gaps and opportunities of small & medium enterprises (sm es) ...Alexander Decker
This document summarizes a study on the challenges faced by financial institutions in lending to small and medium enterprises (SMEs) in Bangladesh. The study found that SMEs in Bangladesh are underserved by financial institutions, which lack customer-tailored products and specialized credit risk assessment systems. Providing loans to SMEs also requires a long time for credit clearance. To address these supply-side gaps, the study recommends identifying the risks faced by commercial banks in lending to SMEs and finding solutions to increase credit flows to the important SME sector.
Challenges of Small Scale Entrepreneurs in Dodoma Tanzaniainventionjournals
Small businesses irrefutably remain critical to the development of any nation’s economy as they are an excellent, source of employment creation, help in improvement of local skill, and extend aboriginal entrepreneurs. The small scale entrepreneurs who (either registered, unregistered, service or manufacturing or any other type) and have more than three years experience of entrepreneurship comprised the populace of the study. The method of convenience sampling was employed in arriving at the 100 Small firms. The major challenge could be lack of financial (Capital) resources. In the event funding institutions become flexible in their requirements for loan applications, respondents registered their willing to increase the number of their employees; the number of branches and willingness to accept specialized recommendation. In other ways, the only best way to help Small firm’s right of entry economic resources lies in the hands of funding institutions as acceptable and suggested by the best part of undersized entrepreneurs who submitted that the key determinants for seed resources attainment are: fair and low interest rates.
Effect of market penetration management strategies on performance of Small En...AkashSharma618775
Small businesses in Kenya face a myriad of challenges. Most of the establishments have gone under the
waters due to various reasons including market turbulences. The businesses leave the market as soon as they make
entry. If they stay, they stagnate at the same level they started. The objective of the study was to find out the effect
of market penetration strategies on the performance of small enterprises in Kenya. The study used descriptive
survey design. The study was conducted in Migori County, Kenya. The target population was 4997 which were
businesses registered by the department of Trade of Migori County in 2019. A sample of 481 individuals were
interviewed. This number was derived using Yamane sampling model. Data was collected from business owners
with the help of a structured questionnaire. The researcher used Cronbach’s alpha coeffect to test the reliability of
the study instrument. Data was sorted, sorted and entered using a statistical software program for social sciences
(SPSS). A simple linear regression was used to test the relationship between market penetration management
strategies and performance of small enterprises in Kenya. Pearson Product Moment correlation was employed in
testing the strength of the relationship between market penetration management strategies and growth of small
enterprises in Kenya.
Information and communication adoption in smesfahmi221282
This document provides a literature review on information and communication technologies (ICTs) adoption by small and medium enterprises (SMEs). It finds that ICT adoption is critical for SME competitiveness and accessing international markets. However, SMEs face numerous challenges to adopting ICTs including lack of skills, infrastructure, and financial resources. The review develops a conceptual framework outlining driving forces for ICT adoption, barriers, ICT tools, and benefits. It concludes that while ICTs offer opportunities for SMEs, many lack strategies to overcome adoption challenges.
This document analyzes the relationship between trade openness and income inequality in Africa using data from 38 African countries from 1980 to 2018. It reviews previous literature that has found mixed results on the impact of trade openness on inequality. The literature identifies factors like economic conditions, social factors, and institutions that influence inequality. The document aims to examine the effects of five dimensions of trade openness on income inequality in Africa, using multiple indices of trade openness. Preliminary results from the analysis show that measures of domestic and international trade are associated with higher income inequality. The study contributes new evidence on this topic in Africa.
Influence of External Equity Financing on Growth of Craft Micro Enterprises i...paperpublications3
Abstract: Micro enterprises together with small and medium enterprises provide employment and income to many people in Kenya. The main objective of the study was to establish the influence of external equity financing on growth of craft micro enterprises in Kenya. The target population for the study constituted all the 2334 craft micro enterprises. The sample frame constituted all the soapstone micro enterprises operating within Tabaka Town and all the woodcarving micro enterprises registered by Wote Town Council. The study used a sample of 330 craft micro enterprises drawn using stratified sampling technique. Data were gathered data using a semi-structured questionnaire after testing it for reliability and validity, and then analyzed by use of descriptive and inferential type of statistics. The ANOVA and multiple regression analysis were used to analyze the data. The findings of the study revealed that, external equity financing (p-value 0.000) has a significant influence on the growth of craft microenterprises. The study recommended that the government should sensitize and encourage the entrepreneurs on to use funds from friends and family members since these are cheap sources because they do not attract interests.
Keywords: Craft, External equity, Financing, Growth, Microenterprise, Tabaka.
Title: Influence of External Equity Financing on Growth of Craft Micro Enterprises in Kenya
Author: Steve Ondieki Nyanamba, Dr. Florence Sigara Memba, Dr. Willy Mwangi Muturi, Electrin Teresa Maswari
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
An Investigation of the Effect of Challenges Encounters Female Entrepreneuria...AkashSharma618775
The participation of females in entrepreneurial activities is such a satisfying ideal that has proven to
convey positive contribution towards economic process. To ascertain this; the subject matter has presented herein.
Such presentation has been done by giving detailed analysis of the effects of challenges encounters female
entrepreneurial taking Malaysia, which is one of the transformed economies as the country of context. There is a
promising growth in entrepreneurial activities in the recent years in Malaysia; yet, this growth has seen to have
many male entrepreneurs leaving females with minimal rate of participation. There are challenges identified,
evaluated and analyzed to be the very reasons that leads to this scenario. The study employed three challenges
called economic, resource and cultural extracted from Isa et al., (2018); the challenges which are henceforth
implemented as independent variables (IVs) of the study. The study has found the significant correlation between
each of these IVs (EoC) and its subject matter; that’s female entrepreneurial (FE) in Malaysia the DV with the
significant levels of 0.026 and 0.012 respectively. The extent of effects was regretted to be 62% within the inverse
correlation of 0.89 to mean that the increase of EoC results to the decrease of FE and the decrease of EoC leads to
the increase of FE. The statistical analytics were measured using SPSS and data were secondarily reviewed from
the study of Hossain et al., (2018). For further researches; an expansion to reach other stakeholders like police
makers and officers of financial institutions has been recommended because, this study has been established on the
mere perspectives and opinions of entrepreneurs and not other stakeholders of entreprenerial activities.
This paper examines whether the long-run relationship between budget and external deficits follows the
tenets of the twin-deficit hypothesis, the Ricardian equivalence hypothesis, the current account targeting
hypothesis, or the feedback linkages. It also evaluates the effects of budget and trade deficits on economic growth.
On a global perspective, these have been in the recent period debated in developed and developing nations. In
contributing to this ongoing debate, the study applied unit root tests, cointegration analysis, a dynamic vector
error correction model and a multivariate Toda-Yamamoto long -run Granger-causality representation using
annual time series data for Kenya from 1980 to 2016. There is evidence of unidirectional causality running from
budget deficit to external deficit in support of the twin-deficit hypothesis. In the long run, budget deficit had
significant positive effects while trade deficit had significant negative effects, on real GDP growth. Overall, the
findings suggest that the authorities should promote policies that upscale fiscal discipline, curb budget deficits for
external stability and long-term economic growth, in Kenya. The evidence underscores the need for more country
specific studies in sub-Saharan Africa.
The supply side gaps and opportunities of small & medium enterprises (sm es) ...Alexander Decker
This document summarizes a study on the challenges faced by financial institutions in lending to small and medium enterprises (SMEs) in Bangladesh. The study found that SMEs in Bangladesh are underserved by financial institutions, which lack customer-tailored products and specialized credit risk assessment systems. Providing loans to SMEs also requires a long time for credit clearance. To address these supply-side gaps, the study recommends identifying the risks faced by commercial banks in lending to SMEs and finding solutions to increase credit flows to the important SME sector.
Challenges of Small Scale Entrepreneurs in Dodoma Tanzaniainventionjournals
Small businesses irrefutably remain critical to the development of any nation’s economy as they are an excellent, source of employment creation, help in improvement of local skill, and extend aboriginal entrepreneurs. The small scale entrepreneurs who (either registered, unregistered, service or manufacturing or any other type) and have more than three years experience of entrepreneurship comprised the populace of the study. The method of convenience sampling was employed in arriving at the 100 Small firms. The major challenge could be lack of financial (Capital) resources. In the event funding institutions become flexible in their requirements for loan applications, respondents registered their willing to increase the number of their employees; the number of branches and willingness to accept specialized recommendation. In other ways, the only best way to help Small firm’s right of entry economic resources lies in the hands of funding institutions as acceptable and suggested by the best part of undersized entrepreneurs who submitted that the key determinants for seed resources attainment are: fair and low interest rates.
Effect of market penetration management strategies on performance of Small En...AkashSharma618775
Small businesses in Kenya face a myriad of challenges. Most of the establishments have gone under the
waters due to various reasons including market turbulences. The businesses leave the market as soon as they make
entry. If they stay, they stagnate at the same level they started. The objective of the study was to find out the effect
of market penetration strategies on the performance of small enterprises in Kenya. The study used descriptive
survey design. The study was conducted in Migori County, Kenya. The target population was 4997 which were
businesses registered by the department of Trade of Migori County in 2019. A sample of 481 individuals were
interviewed. This number was derived using Yamane sampling model. Data was collected from business owners
with the help of a structured questionnaire. The researcher used Cronbach’s alpha coeffect to test the reliability of
the study instrument. Data was sorted, sorted and entered using a statistical software program for social sciences
(SPSS). A simple linear regression was used to test the relationship between market penetration management
strategies and performance of small enterprises in Kenya. Pearson Product Moment correlation was employed in
testing the strength of the relationship between market penetration management strategies and growth of small
enterprises in Kenya.
Information and communication adoption in smesfahmi221282
This document provides a literature review on information and communication technologies (ICTs) adoption by small and medium enterprises (SMEs). It finds that ICT adoption is critical for SME competitiveness and accessing international markets. However, SMEs face numerous challenges to adopting ICTs including lack of skills, infrastructure, and financial resources. The review develops a conceptual framework outlining driving forces for ICT adoption, barriers, ICT tools, and benefits. It concludes that while ICTs offer opportunities for SMEs, many lack strategies to overcome adoption challenges.
This document analyzes the relationship between trade openness and income inequality in Africa using data from 38 African countries from 1980 to 2018. It reviews previous literature that has found mixed results on the impact of trade openness on inequality. The literature identifies factors like economic conditions, social factors, and institutions that influence inequality. The document aims to examine the effects of five dimensions of trade openness on income inequality in Africa, using multiple indices of trade openness. Preliminary results from the analysis show that measures of domestic and international trade are associated with higher income inequality. The study contributes new evidence on this topic in Africa.
Small–medium enterprise formation and nigerian economic growthYing wei (Joe) Chou
This document discusses small-medium enterprises (SMEs) and their relationship to economic growth in Nigeria. It provides background on SMEs in Nigeria, noting they account for a large share of employment and output but the country still faces high unemployment, poverty, and low human development. The paper reviews literature on the importance of SMEs in creating jobs, innovation, and knowledge transfer. It also discusses theories of entrepreneurship and entrepreneurial development. The purpose is to empirically examine the link between SME formation, employment, and economic growth in Nigeria using statistical techniques like error correction modeling and cointegration testing.
This document summarizes a study that investigated the impact of networking between small and medium enterprises (SMEs) and officers at SME Corp. Malaysia on the SMEs' ability to access financial government support programs. The study also examined how financial government support influences SMEs' access to other financial resources. The results showed that networking with SME Corp. officers has a significant positive effect on SMEs' ability to gain financial government support. Additionally, receiving financial government support significantly and positively influences SMEs' capability to access financing from other financial institutions in Malaysia.
Effects of the nigerian capital market on the micro, small and medium scale e...Alexander Decker
This document summarizes a research study on the effects of the Nigerian capital market on micro, small, and medium-scale enterprises (MSMEs) in Nigeria. The study aims to analyze the financial incentives available to MSMEs through the capital market. It finds that MSMEs in Nigeria face significant financial constraints, including lack of access to appropriate financing from both money markets and capital markets. Listing requirements in the capital market also present difficulties for MSMEs seeking to raise capital. The research recommends creating a dedicated stock exchange for MSMEs to help address the "missing middle" of financing for these businesses.
The document discusses a study on analyzing the competitiveness of small and medium enterprises (SMEs) in Probolinggo, East Java, Indonesia. It finds that SMEs' ability to build effective and efficient networks is a key determinant of their flexibility and productivity. Effective networks are characterized by operational efficiency through lower transaction costs, improved access to working capital, and a more innovative business climate. The study suggests network expansion is critical for SME policy development.
Effective sources and uses of finance is one of the primary activities for the success of a
business, where imprudent financing practices have been identified as a key constraint for the development
of the SME sector. For instance, the empirical evidence suggests that uncertainties of the SMEs due tolack
of skills and knowledgeable workers, economic fluctuations and financingcosts at firm level constitutes to het
ride from proper access to formal financing
SMEs play a key role in developing economies by providing employment, income, and helping to address problems like poverty and unemployment. However, SMEs in developing countries face many challenges to their growth and performance, such as limited access to financing, lack of infrastructure, operating informally without formal registration, and burdensome regulations and taxes. Addressing these challenges through improved access to capital, development of infrastructure, promotion of formalization, and supportive regulations and tax policies could help SMEs in developing countries enhance their contributions to economic development.
An examination of the effect of funds provided by cooperative thrift and cred...Alexander Decker
This study examined how funding from Cooperative Thrift and Credit Societies (CTCS) has affected the
performance of small-scale businesses in Nigeria. The results showed that CTCS funding had a positive impact on
key performance indicators of small businesses including current liabilities, fixed assets, and current assets. The
study concluded that membership in CTCS by entrepreneurs positively impacted the performance of small-scale
businesses in Nigeria.
Contribution of Skill Development Program on Self-Employment in Nyamagana Dis...AI Publications
This study aimed to investigate the contribution of skill development to self-employment. The study specifically aimed to identify skills development programs required for self-employment among youth. To identify the roles of stakeholders in contributing to skills development programs on self-employment among youth and to examine factors hindering the contribution of skills development programs towards self-employment among youth. Based on the findings through questionnaires and interviews it can be concluded that skills development programs are very important for youth selfemployment in society. That skills development contributes highly to the youth in the determination of entrepreneurship opportunities; it then gives youth time to learn about the management of their enterprises as well as creating a link between one economic sector to another. However, it was established that there are challenges facing skills development programs among youth, which need to be mitigated properly to obtain positive, results about the improvement of youth selfemployment.
Not only in Vietnam’s bond market, but in the world, green bond is considered to be a useful tool for
the businesses to mobilize capital for the benefits of the environment and society. According to opinions from
experts
Entrepreneurship education on women entrepreneurs atAlexander Decker
1. The document discusses entrepreneurship education for women entrepreneurs in Kenya, specifically at the pre-primary and primary levels.
2. It notes that while micro and small enterprises contribute greatly to Kenya's economy and job growth, about 60% fail within the first few years, and lack of entrepreneurship education may be a key reason for this.
3. The study aims to investigate how entrepreneurship education for women at early school levels influences the success and growth of women-owned micro and small businesses in Kenya.
Fifty years ago, when the Pakistani military carried out a massacre against the people of East
Bangle, the freedom-loving people stood up and fought back
Some Aspects of Financial Management Affecting Cost of Operations of Microfin...iosrjce
MFIs play a fundamental role in the Kenyan economy in that they enhance financial deepening by
enabling millions of Kenyans to access financial services particularly credit. MFIs in Kenya have been facing
many challenges. Despite many successful MFIs containing credit risks within desired levels, they still face
greater challenges in the increased volatility of their portfolio. This study sought to analyze the financial factors
affecting the operations of MFIs in Nakuru town, Kenya. The target population constituted 127 MFIs’
employees. A sample of 57 respondents was drawn from the target population using stratified random sampling
method. A self-administered structured questionnaire was used to collect primary data from the sampled
respondents. Both reliability and content validity of the instrument were tested. The collected data were
analyzed with the aid of the Statistical Package for Social Sciences program. Data analyses were both
descriptive and inferential. The findings of the study were presented in tables that captured both descriptive and
inferential statistical results. Access to credit facilities and financial management skills were found to affect
operations of MFIs positively. On the other hand, it was revealed that both cost of operations and credit risk
negatively affect the MFIs’ operations. The study recommends that MFIs should encourage more savings from
their customers in order to minimize reliance on credit facilities from other financial institutions and should
also employ measures of minimizing the costs of operations. Moreover, MFIs are advised to employ measures of
minimizing the costs of operations, in addition to holding training workshops for their staff in order to equip
them with requisite skills in financial management. Lastly, they should enhance the profiling of all their
customers before advancing any credit facility to them
Thinking about developing business leadership for the post covid worldYing wei (Joe) Chou
The document discusses the need to develop business leadership skills for the post-COVID world. It describes a model developed at Sacred Heart University's Center for Nonprofits that may provide students with the skills, attitudes and values required for successful social entrepreneurship. Over 15 years, 925 MBA students have completed 260 consulting projects for 125 nonprofit clients, totaling 65,000 volunteer hours and $60,000 in consulting services to help nonprofits. The model emphasizes developing students' "knowing," "doing," and "being" to prepare them for leadership in a world that demands both business acumen and social purpose.
Society has saluted corporate social responsibility of firms blindly without paying keen interest to the
long-term survival of humanity. This has made firms pay insufficient consideration to the need to produce
ecologically friendly products
Diffusion of innovation through individual and collective entrepreneurship an...Ying wei (Joe) Chou
This document discusses a study that explores the relationship between individual entrepreneurship, collective (team-based) entrepreneurship, and innovation in small and medium enterprises (SMEs). The study develops a theoretical framework and tests relationships using structural equation modeling on survey data from 700 entrepreneurs in SMEs in Pakistan. The results confirm that both individual entrepreneur traits and collective team efforts contribute to innovation in SMEs. Specifically, entrepreneur personality traits directly impact innovation while centralized decision-making does not, and factors like communication and collaboration among team members contribute to collective entrepreneurship and entrepreneurial orientation, which both directly impact innovation. The study aims to provide a more holistic view of entrepreneurship and innovation by considering both individual and collective dimensions.
This document provides a literature review on the topic of whether Nigerian small and medium enterprises (SMEs) can use social media to enhance their marketing strategies. It begins with an introduction to the topic and definitions of key terms. It then discusses the importance of social media and SMEs to economies. Specifically, it notes that social media has become influential in decision making and relationship building. It also outlines that SMEs are important drivers of job creation and economic growth. The document then reviews social media marketing and how platforms like Facebook, Twitter, LinkedIn and YouTube can be leveraged by SMEs facing constraints like limited budgets and marketing knowledge. In closing, it examines the link between social media and marketing theory.
Competitive strategy and business environment influencing performance of smal...Alexander Decker
This document summarizes a study on the competitive strategies and business environment influencing the
performance of small and medium enterprises (SMEs) in the manufacturing sector in Masvingo, Zimbabwe. The
study found that cost leadership, differentiation, and innovation were the key competitive strategies used by SMEs.
However, the business environment was harsh for SMEs due to various legal, political, economic, and social factors.
The study recommends that SMEs form strategic alliances to access multiple markets and that the government
relax regulations on SMEs.
This document summarizes a study that investigated the importance of capacity building and infrastructure development for the entrepreneurial practices of university graduates in Bayelsa State, Nigeria. The study found that 60% of male and 70% of female respondents agreed that capacity building and infrastructure development are important. There was no significant difference between male and female respondents in their views. The study concluded that capacity building and infrastructure development are both important to enhance entrepreneurial practices among university graduates in Bayelsa State.
The Importance of Entrepreneurship and Information Technology for SMEs Strate...ijtsrd
The policy of developing the economic model of a country aims to stimulate all economic sectors to advance and develop into strengths on a regional and national scale. Micro, small and medium enterprises SMEs have become one of the most effective engines in developing economic market patterns in almost all countries and regions of the world. SMEs that contribute to this economic sector are the largest contributors to the pattern of advanced economies that drive competitive economic growth. SMEs actors have become the driving force of the economy and this must be recognized by the State in terms of their participation. The significant role of SMEs in the economies of world countries is very crucial in reviving and stabilizing and nourishing the global economy where their role will be seen in the conditions that SMEs fail or succeed in their journey. Basically, SMEs have little in having the driving capital of their business to develop and generally do not have much technical capability which causes them to be low in all circumstances and lack of access to develop capital for their future investment. In addition, the development of SMEs has become an important mechanism of how to develop economic growth, create jobs, and alleviate poverty from economic types. This article specifically discusses small scale entrepreneurshiphip and increases the use of information technology in the mission of supporting performance and competitive advantage. small business actors. The main purpose of this article is how to contribute positive thoughts to entrepreneurship or entrepreneurship in the use of entrepreneurial orientation, information technology in building strategic planning to support business performance and towards competitive advantage for entrepreneurship, especially SMEs. Lena Ellitan "The Importance of Entrepreneurship and Information Technology for SMEs Strategic Planning" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42479.pdf Paper URL: https://www.ijtsrd.commanagement/new-venture-startup/42479/the-importance-of-entrepreneurship-and-information-technology-for-smes-strategic-planning/lena-ellitan
This document discusses small and medium enterprises (SMEs) and their role in economic development in Nigeria. It provides background on definitions of SMEs, barriers to adoption of e-commerce among Nigerian SMEs such as costs and skills gaps, and government efforts to support SMEs through various programs and funds. The internet and mobile technologies are increasing opportunities for SMEs, but infrastructure and regulatory issues remain barriers. Overall SMEs represent most businesses and employment in Nigeria but have yet to achieve their full potential for economic growth.
Effect of entrepreneurial finance on the growth of small andAlexander Decker
This document discusses a study on the effect of entrepreneurial finance on the growth of small and medium enterprises (SMEs) in Kenya. It provides background on the importance of SMEs to the Kenyan economy and the challenges they face in accessing finance. The study aimed to assess how access to entrepreneurial finance influences the growth of SMEs. A sample of 142 SMEs in Thika district were surveyed using questionnaires. The study found that access to entrepreneurial finance has a positive impact on the growth of SMEs as measured by factors like employment, sales, and profits.
Firm level determinants to small and medium sized enterprises’ access to fina...rrpidani
Firm Level Determinants to Small and Medium-Sized Enterprises’ Access to Financing in Indonesia by Rita Pidani and Ishak Balaka. Academy of Taiwan Business Management Review, April 2013, Volume 9, Number 1, pp. 117-126.
Small–medium enterprise formation and nigerian economic growthYing wei (Joe) Chou
This document discusses small-medium enterprises (SMEs) and their relationship to economic growth in Nigeria. It provides background on SMEs in Nigeria, noting they account for a large share of employment and output but the country still faces high unemployment, poverty, and low human development. The paper reviews literature on the importance of SMEs in creating jobs, innovation, and knowledge transfer. It also discusses theories of entrepreneurship and entrepreneurial development. The purpose is to empirically examine the link between SME formation, employment, and economic growth in Nigeria using statistical techniques like error correction modeling and cointegration testing.
This document summarizes a study that investigated the impact of networking between small and medium enterprises (SMEs) and officers at SME Corp. Malaysia on the SMEs' ability to access financial government support programs. The study also examined how financial government support influences SMEs' access to other financial resources. The results showed that networking with SME Corp. officers has a significant positive effect on SMEs' ability to gain financial government support. Additionally, receiving financial government support significantly and positively influences SMEs' capability to access financing from other financial institutions in Malaysia.
Effects of the nigerian capital market on the micro, small and medium scale e...Alexander Decker
This document summarizes a research study on the effects of the Nigerian capital market on micro, small, and medium-scale enterprises (MSMEs) in Nigeria. The study aims to analyze the financial incentives available to MSMEs through the capital market. It finds that MSMEs in Nigeria face significant financial constraints, including lack of access to appropriate financing from both money markets and capital markets. Listing requirements in the capital market also present difficulties for MSMEs seeking to raise capital. The research recommends creating a dedicated stock exchange for MSMEs to help address the "missing middle" of financing for these businesses.
The document discusses a study on analyzing the competitiveness of small and medium enterprises (SMEs) in Probolinggo, East Java, Indonesia. It finds that SMEs' ability to build effective and efficient networks is a key determinant of their flexibility and productivity. Effective networks are characterized by operational efficiency through lower transaction costs, improved access to working capital, and a more innovative business climate. The study suggests network expansion is critical for SME policy development.
Effective sources and uses of finance is one of the primary activities for the success of a
business, where imprudent financing practices have been identified as a key constraint for the development
of the SME sector. For instance, the empirical evidence suggests that uncertainties of the SMEs due tolack
of skills and knowledgeable workers, economic fluctuations and financingcosts at firm level constitutes to het
ride from proper access to formal financing
SMEs play a key role in developing economies by providing employment, income, and helping to address problems like poverty and unemployment. However, SMEs in developing countries face many challenges to their growth and performance, such as limited access to financing, lack of infrastructure, operating informally without formal registration, and burdensome regulations and taxes. Addressing these challenges through improved access to capital, development of infrastructure, promotion of formalization, and supportive regulations and tax policies could help SMEs in developing countries enhance their contributions to economic development.
An examination of the effect of funds provided by cooperative thrift and cred...Alexander Decker
This study examined how funding from Cooperative Thrift and Credit Societies (CTCS) has affected the
performance of small-scale businesses in Nigeria. The results showed that CTCS funding had a positive impact on
key performance indicators of small businesses including current liabilities, fixed assets, and current assets. The
study concluded that membership in CTCS by entrepreneurs positively impacted the performance of small-scale
businesses in Nigeria.
Contribution of Skill Development Program on Self-Employment in Nyamagana Dis...AI Publications
This study aimed to investigate the contribution of skill development to self-employment. The study specifically aimed to identify skills development programs required for self-employment among youth. To identify the roles of stakeholders in contributing to skills development programs on self-employment among youth and to examine factors hindering the contribution of skills development programs towards self-employment among youth. Based on the findings through questionnaires and interviews it can be concluded that skills development programs are very important for youth selfemployment in society. That skills development contributes highly to the youth in the determination of entrepreneurship opportunities; it then gives youth time to learn about the management of their enterprises as well as creating a link between one economic sector to another. However, it was established that there are challenges facing skills development programs among youth, which need to be mitigated properly to obtain positive, results about the improvement of youth selfemployment.
Not only in Vietnam’s bond market, but in the world, green bond is considered to be a useful tool for
the businesses to mobilize capital for the benefits of the environment and society. According to opinions from
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Entrepreneurship education on women entrepreneurs atAlexander Decker
1. The document discusses entrepreneurship education for women entrepreneurs in Kenya, specifically at the pre-primary and primary levels.
2. It notes that while micro and small enterprises contribute greatly to Kenya's economy and job growth, about 60% fail within the first few years, and lack of entrepreneurship education may be a key reason for this.
3. The study aims to investigate how entrepreneurship education for women at early school levels influences the success and growth of women-owned micro and small businesses in Kenya.
Fifty years ago, when the Pakistani military carried out a massacre against the people of East
Bangle, the freedom-loving people stood up and fought back
Some Aspects of Financial Management Affecting Cost of Operations of Microfin...iosrjce
MFIs play a fundamental role in the Kenyan economy in that they enhance financial deepening by
enabling millions of Kenyans to access financial services particularly credit. MFIs in Kenya have been facing
many challenges. Despite many successful MFIs containing credit risks within desired levels, they still face
greater challenges in the increased volatility of their portfolio. This study sought to analyze the financial factors
affecting the operations of MFIs in Nakuru town, Kenya. The target population constituted 127 MFIs’
employees. A sample of 57 respondents was drawn from the target population using stratified random sampling
method. A self-administered structured questionnaire was used to collect primary data from the sampled
respondents. Both reliability and content validity of the instrument were tested. The collected data were
analyzed with the aid of the Statistical Package for Social Sciences program. Data analyses were both
descriptive and inferential. The findings of the study were presented in tables that captured both descriptive and
inferential statistical results. Access to credit facilities and financial management skills were found to affect
operations of MFIs positively. On the other hand, it was revealed that both cost of operations and credit risk
negatively affect the MFIs’ operations. The study recommends that MFIs should encourage more savings from
their customers in order to minimize reliance on credit facilities from other financial institutions and should
also employ measures of minimizing the costs of operations. Moreover, MFIs are advised to employ measures of
minimizing the costs of operations, in addition to holding training workshops for their staff in order to equip
them with requisite skills in financial management. Lastly, they should enhance the profiling of all their
customers before advancing any credit facility to them
Thinking about developing business leadership for the post covid worldYing wei (Joe) Chou
The document discusses the need to develop business leadership skills for the post-COVID world. It describes a model developed at Sacred Heart University's Center for Nonprofits that may provide students with the skills, attitudes and values required for successful social entrepreneurship. Over 15 years, 925 MBA students have completed 260 consulting projects for 125 nonprofit clients, totaling 65,000 volunteer hours and $60,000 in consulting services to help nonprofits. The model emphasizes developing students' "knowing," "doing," and "being" to prepare them for leadership in a world that demands both business acumen and social purpose.
Society has saluted corporate social responsibility of firms blindly without paying keen interest to the
long-term survival of humanity. This has made firms pay insufficient consideration to the need to produce
ecologically friendly products
Diffusion of innovation through individual and collective entrepreneurship an...Ying wei (Joe) Chou
This document discusses a study that explores the relationship between individual entrepreneurship, collective (team-based) entrepreneurship, and innovation in small and medium enterprises (SMEs). The study develops a theoretical framework and tests relationships using structural equation modeling on survey data from 700 entrepreneurs in SMEs in Pakistan. The results confirm that both individual entrepreneur traits and collective team efforts contribute to innovation in SMEs. Specifically, entrepreneur personality traits directly impact innovation while centralized decision-making does not, and factors like communication and collaboration among team members contribute to collective entrepreneurship and entrepreneurial orientation, which both directly impact innovation. The study aims to provide a more holistic view of entrepreneurship and innovation by considering both individual and collective dimensions.
This document provides a literature review on the topic of whether Nigerian small and medium enterprises (SMEs) can use social media to enhance their marketing strategies. It begins with an introduction to the topic and definitions of key terms. It then discusses the importance of social media and SMEs to economies. Specifically, it notes that social media has become influential in decision making and relationship building. It also outlines that SMEs are important drivers of job creation and economic growth. The document then reviews social media marketing and how platforms like Facebook, Twitter, LinkedIn and YouTube can be leveraged by SMEs facing constraints like limited budgets and marketing knowledge. In closing, it examines the link between social media and marketing theory.
Competitive strategy and business environment influencing performance of smal...Alexander Decker
This document summarizes a study on the competitive strategies and business environment influencing the
performance of small and medium enterprises (SMEs) in the manufacturing sector in Masvingo, Zimbabwe. The
study found that cost leadership, differentiation, and innovation were the key competitive strategies used by SMEs.
However, the business environment was harsh for SMEs due to various legal, political, economic, and social factors.
The study recommends that SMEs form strategic alliances to access multiple markets and that the government
relax regulations on SMEs.
This document summarizes a study that investigated the importance of capacity building and infrastructure development for the entrepreneurial practices of university graduates in Bayelsa State, Nigeria. The study found that 60% of male and 70% of female respondents agreed that capacity building and infrastructure development are important. There was no significant difference between male and female respondents in their views. The study concluded that capacity building and infrastructure development are both important to enhance entrepreneurial practices among university graduates in Bayelsa State.
The Importance of Entrepreneurship and Information Technology for SMEs Strate...ijtsrd
The policy of developing the economic model of a country aims to stimulate all economic sectors to advance and develop into strengths on a regional and national scale. Micro, small and medium enterprises SMEs have become one of the most effective engines in developing economic market patterns in almost all countries and regions of the world. SMEs that contribute to this economic sector are the largest contributors to the pattern of advanced economies that drive competitive economic growth. SMEs actors have become the driving force of the economy and this must be recognized by the State in terms of their participation. The significant role of SMEs in the economies of world countries is very crucial in reviving and stabilizing and nourishing the global economy where their role will be seen in the conditions that SMEs fail or succeed in their journey. Basically, SMEs have little in having the driving capital of their business to develop and generally do not have much technical capability which causes them to be low in all circumstances and lack of access to develop capital for their future investment. In addition, the development of SMEs has become an important mechanism of how to develop economic growth, create jobs, and alleviate poverty from economic types. This article specifically discusses small scale entrepreneurshiphip and increases the use of information technology in the mission of supporting performance and competitive advantage. small business actors. The main purpose of this article is how to contribute positive thoughts to entrepreneurship or entrepreneurship in the use of entrepreneurial orientation, information technology in building strategic planning to support business performance and towards competitive advantage for entrepreneurship, especially SMEs. Lena Ellitan "The Importance of Entrepreneurship and Information Technology for SMEs Strategic Planning" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42479.pdf Paper URL: https://www.ijtsrd.commanagement/new-venture-startup/42479/the-importance-of-entrepreneurship-and-information-technology-for-smes-strategic-planning/lena-ellitan
This document discusses small and medium enterprises (SMEs) and their role in economic development in Nigeria. It provides background on definitions of SMEs, barriers to adoption of e-commerce among Nigerian SMEs such as costs and skills gaps, and government efforts to support SMEs through various programs and funds. The internet and mobile technologies are increasing opportunities for SMEs, but infrastructure and regulatory issues remain barriers. Overall SMEs represent most businesses and employment in Nigeria but have yet to achieve their full potential for economic growth.
Effect of entrepreneurial finance on the growth of small andAlexander Decker
This document discusses a study on the effect of entrepreneurial finance on the growth of small and medium enterprises (SMEs) in Kenya. It provides background on the importance of SMEs to the Kenyan economy and the challenges they face in accessing finance. The study aimed to assess how access to entrepreneurial finance influences the growth of SMEs. A sample of 142 SMEs in Thika district were surveyed using questionnaires. The study found that access to entrepreneurial finance has a positive impact on the growth of SMEs as measured by factors like employment, sales, and profits.
Firm level determinants to small and medium sized enterprises’ access to fina...rrpidani
Firm Level Determinants to Small and Medium-Sized Enterprises’ Access to Financing in Indonesia by Rita Pidani and Ishak Balaka. Academy of Taiwan Business Management Review, April 2013, Volume 9, Number 1, pp. 117-126.
This study empirically evaluates the performance of Nigeria's Small and Medium Enterprises Equity Investment Scheme (SMEEIS) using data from Benue and Nassarawa States from 1993 to 2008. The study found that there was no significant difference in bank loans to SMEs before and after the introduction of SMEEIS, and that the conditions for accessing SMEEIS funds were beyond the reach of most SMEs in Nigeria. This indicates that SMEEIS has not significantly impacted SME growth in Nigeria. The study recommends establishing a credit guarantee scheme with risk-sharing between the government and banks to encourage greater bank lending to SMEs and support their growth, development, and Nigeria's national economic
An Assessment of the role of Financial literacy on Performance of Small and M...World-Academic Journal
This document summarizes a study that assessed the effects of a financial literacy education program on the performance of small and micro enterprises in Njoro District, Kenya. The program was implemented by Equity Group Foundation since 2011. The study found that the program emphasized important skills like budgeting, financial analysis, credit management and bookkeeping. There was a significant improvement in business performance, as measured by increased revenue, for enterprises whose managers participated in the financial literacy training. The training also helped participants better manage loans and minimize interest expenses, which enhanced performance. Budgeting skills played a key role in growing sales, profits and ensuring smooth business operations. Overall, the study concluded that the financial literacy program had a positive impact on business performance.
This document summarizes a study that assessed the effects of a financial literacy education program on the performance of small and micro enterprises in Njoro District, Kenya. The program was implemented by Equity Group Foundation since 2011. The study found that the program emphasized important skills like budgeting, financial analysis, credit management and bookkeeping. There was a significant improvement in business performance, as measured by increased revenue, for enterprises whose managers participated in the program. Credit management and budgeting skills helped businesses acquire financing, manage loans to minimize costs, and ensure smooth operations. The impact provides evidence that mainstreaming financial literacy training can enhance business performance nationwide.
Role of Finance and Organizational Climate on Entrepreneurial Development amo...ijtsrd
Entrepreneurship is a key driver of economic growth and economic development. It is also a medium through which unemployment can be reduced and innovation can be promoted. It is a fact to say that entrepreneurship is a panacea for poverty reduction and eradication which is one of the cardinal eight point agenda of Millennium Development Goals. Entrepreneurship is seen as a key vehicle for employment creation, creation of economic wealth, and an essential means of enhancing the innovation dynamics in the local, regional and national economies Chris 2010 . Entrepreneurship provides a satisfying and rewarding working life, provides a flexible lifestyle and considerable business autonomy. It is becoming an increasingly important career option for unemployed people, secondary school and university graduates. At the national level, entrepreneurial activity contributes to economic growth and economic development Chris 2010 . Many researchers have written extensively on entrepreneurship and its effectiveness to the development of any given economy. Akanni 2008 further opined that the experiences of developed economies in relation to the roles played by entrepreneurship buttresses the fact that the significance of entrepreneurship cannot be overemphasize particularly among developing countries. In order to highlight its importance in relation to the growth and development of a given economy, entrepreneurship has been variously referred to as "source of economic growth". This is because entrepreneurial activities have been found to be capable of making positive impact on the economy of a nation and the quality of life of the people Adejumo, 2000 . Ojo Adeshina Akinwumi | Abifarin Olusola Michael | Dr. Okoklie Emmanuel Azuka "Role of Finance and Organizational Climate on Entrepreneurial Development among Selected Residents" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd30297.pdf Paper Url :https://www.ijtsrd.com/other-scientific-research-area/other/30297/role-of-finance-and-organizational-climate-on-entrepreneurial-development-among-selected-residents/ojo-adeshina-akinwumi
Determinants of relevancy of micro financial services to sm es and clients’ r...Alexander Decker
This document summarizes a research study that investigated factors influencing the relevance of microfinancial services to small and medium enterprises (SMEs) in Tanzania. The study analyzed five factors: the terms and conditions of lending, product development and innovation, responsiveness to client requests, problem handling for clients, and quality of services. Survey data was collected from microfinance institution clients and staff. Correlation analysis found weak relationships between the factors and service relevance. Client responsiveness to relevance was also questionable. The study aims to help improve microfinance strategies and policies to better support SME development in Tanzania.
American Research Journal of Humanities & Social Science (ARJHSS) is a double blind peer reviewed, open access journal published by (ARJHSS).
The main objective of ARJHSS is to provide an intellectual platform for the international scholars. ARJHSS aims to promote interdisciplinary studies in Humanities & Social Science and become the leading journal in Humanities & Social Science in the world.
The effect-of-project-appraisal-on-the-sustainability-of-small-enterprises-a-...oircjournals
Project appraisal analyzes whether a project is worthy in the light of its costs in terms of resource commitments and the projects’ expected benefits. Appraisal is a key element in the decision to assist in deciding as to whether or not to proceed with a project. This study examined the effects of project appraisal on the sustainability of small enterprises in Eldoret Town. The study was based on the Agency Theory with the population consisting of over 400 respondents from Langas Estate. Stratified and simple random technique was used to select a sample of one hundred and twenty nine (129) respondents. Primary data was collected using structured questionnaires. Data was analyzed using descriptive statistics and a regression analysis was done on the variables. Findings were presented in frequency tables and percentages. The multiple regressions between variables showed that there was an inverse relationship between sustainability of small enterprises and project appraisal. Project appraisal had a P value greater than 0.05 level of significance (P>0.05). Results on hypothesis testing also revealed that, there was no significant relationship between project appraisal and sustainability since the P value was (0.338) and was greater than 0.05, (P>0.05). The study concluded that project appraisal by microfinance institutions was not satisfactory. The projects were locked out of financing options simply because they were not convincing in terms of their profitability. Entrepreneurs were therefore denied the chance to expand and grow their businesses. Finally because entrepreneurs are risk takers they should not fear possibilities of projects crumbling but be ready always to invest in any business idea after their project appraisal.
Assessing the effect of liquidity on profitability of commercial banks in kenyaAlexander Decker
This document discusses factors that affect the profitability of commercial banks in Kenya. It provides background on the banking sector in Kenya and reviews various theories on factors that influence bank profitability, including market power theory, efficiency structure theory, and the Modigliani-Miller theorem. The study aimed to determine the effect of internal factors like liquidity on the profitability of commercial banks in Kenya. It found that liquidity has a statistically significant and positive relationship with bank profitability.
Assessing the effect of liquidity on profitability of commercial banks in kenyaAlexander Decker
This document discusses factors that affect the profitability of commercial banks in Kenya. It provides background on the banking sector in Kenya and reviews various theories on factors that influence bank profitability. The study aimed to determine the effect of internal factors like liquidity on the profitability of commercial banks in Kenya. It employed a descriptive research design using secondary data from the annual reports of 43 commercial banks over a 5-year period from 2009 to 2013. The findings showed that liquidity had a statistically significant positive relationship with bank profitability. The document provides context on theories of bank profitability and the motivation and methodology of the study.
This document summarizes a study on the impact of microfinancing on the performance of small and medium enterprises (SMEs) in Ghana. It begins with an introduction to microfinancing and importance of SMEs. It then reviews previous literature that has examined the relationship between microfinancing and SME performance. The methodology section describes how the study used a survey of 100 SMEs in Okaishie market in Ghana. Results found that most SME entrepreneurs were male, in the 36-55 age range, and had received some level of education. Over half of SMEs had benefited from microfinancing products and services.
An evaluation of legal, legislative and financial factors affecting performan...Alexander Decker
This document analyzes legal, legislative, and financial factors affecting the performance of women micro-entrepreneurs in Kenya. It finds that:
1) Legal and legislative factors, such as high licensing fees and a lack of property rights for women, have a strongly negative impact on business performance.
2) Access to financial services from microfinance institutions has a strongly positive impact by providing opportunities for women to start and grow businesses.
3) Women entrepreneurs lack education on their legal rights and face difficulties conforming to complex regulations, adopting new technologies, and perceive taxes and fees as constraints.
The paper assesses the effectiveness of commercial bank loans as sources of funding Small and Medium Enterprises
(SMEs) in Southeast, Nigeria. A cross-sectional survey method wherein structured questionnaire was used to collect
data was adopted. A sample of 500 respondents was randomly selected from the five industrial hubs in the five states
of Southeast, namely Nnewi, Aba, Enugu, Abakiliki, and Owerri. With the aid of pecking order theory
(POT)/hypothesis of Lending, percentage formula, and SPSS version 20.0 tools, the data generated from the
respondents were analysed. Among others, the results of the analysis reveal that SMEs and commercial banks are
highly indifferent to the loans facilities; strict collateral requirements, high interest rates, and the nature of
requirements for guarantors dissuade SMEs from accessing loans; and government interventions provided palliative
measures but failed to address the problems associated with the loans. Therefore, this paper recommends policy
reforms to reduce interest rate, collateral and guarantor requirements. Further research on how to modernise and
harmonise other external sources of SME funding such as „daily contribution‟ and „Isusu‟ systems is required.
This study investigates specifically the impact of Oil and Non-Oil Products on Nigeria Gross Domestic Product
(GDP). Data were collected for period 1981-2016 Descriptive Statistics and Multiple Linear Regression Approach
was used, defining Oil, and Non-Oil Products as independent variables and Gross Domestic Product (GDP) as
dependent variable. From the analysis, Oil, and Non-Oil Products contributes immensely to the Nigeria Gross
Domestic Product (GDP). Contrary, the Oil Product is positively and insignificant on economic growth of Nigeria
(GDP) and the Non-Oil Product has positively and significant on economic growth of Nigeria (GDP). This study
therefore recommends that Nigeria should enhance her export promotion strategies and diversify her economy far
away from Crude oil.
This document introduces a new dataset on small and medium enterprises (SMEs) to fill gaps in cross-country SME data. The summary analyzes the dataset and finds:
1) Global SME lending is estimated to be $10 trillion, with 70% in high-income countries.
2) SME loans average 13% of GDP in developed countries and 3% in developing countries.
3) Differences in SME definitions across countries do not significantly impact cross-country comparisons of SME lending volumes.
This document summarizes a new dataset on small and medium enterprise (SME) lending across countries. It finds that many regulators collect SME financing data, though definitions vary. The estimated global SME lending volume is $10 trillion, with 70% in high-income countries. SME loans average 13% of GDP in developed countries and 3% in developing countries. While definitions differ, these differences do not significantly impact reported SME lending volumes.
Dynamic capabilities and performance in the context of microfinance instituti...hunypink
This document summarizes a research study that will examine how dynamic capabilities affect the performance of microfinance institutions in Kenya. It will focus on 13 licensed microfinance institutions from 2017 to 2018. The study will assess how absorptive capability, adaptive capability, innovative capability, and networking capability impact various performance measures. It will also analyze whether strategic choice and business regulatory environment moderate the relationship between dynamic capabilities and performance. The research will use theories on dynamic capabilities, strategic choice, and institutions to guide the study. It will employ a quantitative research design using surveys and secondary data to collect information on the variables.
Similar to Influence of Debt Equity Financing on Growth of Craft Micro Enterprises in Kenya (20)
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Influence of Debt Equity Financing on Growth of Craft Micro Enterprises in Kenya
1. ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Vol. 4, Issue 1, pp: (48-58), Month: January - March 2017, Available at: www.paperpublications.org
Page | 48
Paper Publications
Influence of Debt Equity Financing on Growth
of Craft Micro Enterprises in Kenya
Steve Ondieki Nyanamba1
, Dr. Florence Sigara Memba2
, Dr. Willy Mwangi Muturi2
,
Electrin Teresa Maswari3
1
Jomo Kenyatta University of Agriculture and Technology (PhD Candidate)
2
Jomo Kenyatta University of Agriculture and Technology (PhD)
3
University of Nairobi (PhD Candidate)
Abstract: Craft industry contributes greatly to the economy of a country for it provides income for not only micro
enterprises but also small and medium enterprises. The main objective of the study was to determine the influence
of debt financing on growth of craft micro enterprises in Kenya, to determine the influence of retained earnings on
growth of craft micro enterprises in Kenya. The study covered the soapstone micro enterprises registered by
Tabaka Town Council and the woodcarving micro enterprises registered by Wote Town Council. This study
adopted descriptive research designs. The target population for the study constituted all the soapstone micro
enterprises in Tabaka Town which are registered by Tabaka Town Council, Kisii County, and all the woodcarving
micro enterprises of Wamunyu Location, Machakos County, which are registered by Wote Town Council. From
this population of 2334 respondents, a sample of 330 respondents was divided proportionately between the two
regions according to the proportion of their craft micro enterprises under study, using stratified random sampling.
The study gathered data using a semi-structured questionnaire, and the data collected were analyzed by use of
descriptive and inferential type of statistics using the Statistical Package for Social Science (SPSS) version 21.The
results were then summarized in tables, charts and graphs. The findings of the study revealed that debt financing
has a significant influence on the growth of craft microenterprises.
Keywords: Debt, Craft, Equity, Financing, Growth, Microenterprise.
1. INTRODUCTION
Unemployment is a major problem in most countries and this has made many people to result into self employment
activities which largely form the micro and small enterprises sector in the country (Stevenson, 2005). Kushnir,
Mirmulstein and Ramalho (2010) define micro enterprises as a business entity which has employed between 1-9
employees, small enterprises as a business entity which has employed between 10-49 employees, and medium enterprises
as a business entity which has employed between 50-245 employees.
A study by Memba (2011) praised Small and Micro Enterprises (SMEs) by disclosing their important contribution to
growth of economy in Kenya as follows: promoting full productive and freely chosen employment, improving access to
income earning opportunities, wealth creation leading to productive and sustainable employment quality, enhancing
SMEs sustainable economic growth and ability to create change with flexibility, increase domestic savings and
investment thus balancing regions and local development. The sector employs around 2.3 million people and generates
around 14% of the country’s Gross Domestic Product (Naserimbe, 2007).
Carpenter and Petersen (2002) as reported in Wanambisi and Bwisa (2013) argue that, firms whose financial needs exceed
their internal resources may be constrained to pursue potential opportunities for growth. A study by Mateev (2010) noted
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that although growth in manufacturing and service SMEs in transition economies is well explained by the traditional firm
characteristics of size and age, there is no empirical evidence concerning what other specific factors may be associated
with SME growth and performance in these countries in Central and Eastern Europe. Heshmati (2001) cited in Mateev
(2010) found out that there existed a positive correlation between indebtedness and sales growth using data on Swedish
micro and small firms. Babajide (2012) reiterated that small business enterprises in Nigeria find it difficult to access
formal financial institutions such as commercial banks for funds and that this inability of the SMEs to meet the standard
of the formal financial institutions for loan consideration provides a platform for informal institutions to attempt to fill the
gap usually based on informal social networks. Evbuomwan, Ikpi, Okoruwa and Akinyosoye’s (2012) study on
preferences of micro, small and medium scale enterprises to financial products in Nigeria revealed that regardless of the
immense contributions of micro enterprises (MEs) to economic growth and development not only in the developing but
also in the developed world, they still face immense challenge of limited access of the investors to long term credit.
Anakoya, Fasanya and Abdulrahman (2013) found out that that loan to small scale entrepreneurs have a positive impact
on the economic performance while interest rate has a negative impact on economic growth in Nigeria. Ekpe, Mat and
Razak (2010) observed that most women entrepreneurs, especially in developing countries, do not have easy access to
microfinance factors for their entrepreneurial activity and as such have low business performance than their men
counterparts, whereas the rate of their participation in the informal sector of the economy is higher than males.
Obwori, Iravo, Munene and Kaburi’s (2012) study on the effects of funding constraints in growth of small scale
enterprises in soapstone industry in Kenya, found out that, collateral, bank accounts and high interest rates for loans
inhibit the entrepreneurs’ access to funds. Mwangi and Birundu (2015) on the effect of capital structure on the financial
performance of Small and Medium Enterprises in Thika Sub-County, Kenya concluded that there was no significant effect
of capital structure, asset turnover and asset tangibility on the financial performance of SMEs.
Mutinda (2014) was interested in assessing the impact of the woodcarving industry on the environment, and the study
revealed that woodcarving is a source of livelihood for many families although the activity was observed to be practiced
to the detriment of the environment. The study suggested the need for woodcarvers to carry out their trade in a sustainable
way and also carry out afforestation and reforestation programmes.
Debt and equity are the two major classes of financing in a business. Debt holders exert lesser control over the company
and earn a fixed rate of return and are protected by contractual obligations (Marcel and Sakwe, 2014). Firms choose
between debt and equity as financing resources based on firm-specific factors namely, profitability, firm size, tangibility,
among others; as well as macroeconomic factors like inflation rate, interest rate, economic growth (Brendea, 2012). A
company’s choice of capital structure determines the allocation of its operating cash flow each period between debt
holders and shareholders (Chowdhury & Chowdhury, 2010). The firm’s capital structure can be made optimum through
among other things; minimizing the use of debt as a means of financing SMEs since often these debts are acquired by the
firm at a cost in the form of interest paid on the debt. As much as the use of debt may increase the return on equity funds,
but it always increases financial risk as well (Nyanamba, Nyangweso & Omari, 2013). Duan et al. (2012) observed that
with the rapid development of modern market economy, in order to safeguard the comprehensive competitiveness,
enterprises adjust their capital structure based on the external and internal environment.
Studies have indicated that craft industry contributes to Kenyan economy through improved infrastructure, employment,
tax revenue to the government and foreign exchange. Besides, it is a major source of income for not only micro
enterprises but also small and medium enterprises and also the local community (Obwori et al., 2012). However, it has
been observed that in spite of their vital contribution to the growth of the economy, their growth has been very slow, if
any. Inadequate capital has been perceived as one of the major reasons why there is stagnated growth among micro
enterprises in various parts of the world (Obwori et al., 2012). It is for this reason that this study was done that is adopting
more superior tools for data analysis so as to fill the gap.
The main objective of the study was to determine the influencing of debt financing on growth of craft micro enterprises in
Kenya. The study will be pegged on Static Trade-Off Theory (TOT) which was derived by Modigliani and Miller in 1963.
The TOT assumes that there are optimal capital structures by trading off the benefits and cost of debt and equity (Chen,
2013). Under the tradeoff theory of capital structure, firms determine their preferred leverage ratio by calculating the tax
advantages, costs of financial distress, mispricing, and incentive effects of debt versus equity (Faulkender & Petersen,
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2006). One of the benefits of the use of debt is the advantage of a debt tax shield which is associated with it. However, the
cost of potential financial distress poses a threat especially when the firm relies on too much debt.
2. DEBT FINANCING
Credit facilities form an integral part of micro enterprise development. It is essential in starting, expanding or improving
the productivity of an enterprise (Odero-Wanga, Mulu-Mutuku & Ali-Olubandwa, 2013). However, the results of
Akingunola (2011) warned that the financial sector has dismally satisfied the financing need of the small and medium
enterprises sub-sector while its micro enterprises counterpart has been completely abandoned. Debt financing refers to
funds that are borrowed and must be repaid, plus interest (Torteska, 2012). There are several sources of debt financing for
businesses and these include; commercial finance companies, hire purchase, share capital, and funds from SACCOs and
credit unions (Scarborough, 2013). Sharma and Gounder (2011) observed that the SMEs were constrained by banks’
interest rates, fees and charges, and collateral requirements thus making it hard for them to secure loan. Biswas (2014)
cited lack of credit from banks as one of the major challenges faced by MSME`S in India. The study observed that on
average, the banks provide on an average 50% total capital employed in fixed assets.
In a study on the impact of micro credit on small business, Akoto (2014) pointed out that, although the main reason
behind loan advance to micro enterprises in the form of micro credit was to eradicate poverty by developing new markets
and by promoting a culture of entrepreneurship, it was also observed that micro credit has minimal state intervention,
thereby shifting the focus of attention away from the society towards individuals. Report by European Commission
(2008) lamented that large financial banks have considerably reduced lending to small scale enterprises thus inhibiting
their potential for growth and financial performance.
Wanjohi (2010) observed that lack of access to credit is almost universally indicated as a key problem for SME’s.
According to the study, this affects technology choice by limiting the number of alternatives that can be considered.
Olutunla and Obamuyi (2008) narrated that the growth of SMEs is not just dependent on accessing bank loan but
accessing the right size of loan at the right time. The results of a study by Abiola (2012) on the effects of microfinance on
micro and small enterprises growth lamented that microfinance banks do not enhance growth and expansion capacity of
micro and small enterprise in Nigeria.
Chowdhury and Chowdhury’s (2010) study tested the influence of debt-equity structure on the value of shares given
different sizes, industries and growth opportunities with the companies incorporated in Dhaka Stock Exchange and
Chittagong Stock Exchange of Bangladesh. The findings of the study revealed that maximizing the wealth of shareholders
requires a perfect combination of debt and equity. Ahmad et al. (2012) sought to investigate the impact of capital structure
on firm performance in Malaysia, and found out that only short-term debt (STD) and total debt (TD) have significant
relationship with ROA while return on equity ROE has significant on each of debt level. Bandyopadhyay’s (2005) study
on the effect of capital structure on manufacturing firms’ product performance in India realized that long-term debt boosts
sales growth of firms belonging to the top 50 and large business houses. However, the study further noted that long term
debt is insequential for growth of sales for smaller group and unaffiliated firms.
Babajide (2012) investigated on the effects of microfinance on micro and small business growth in Nigeria, and the study
revealed that access to microfinance does not enhance growth of micro and small enterprises in Nigeria, because the size
of the loan is too small for any meaningful impact on small firms. Evbuomwanet al.’s (2012) study on preferences of
micro, small and medium scale enterprises to financial products in Nigeria, discovered that majority of the respondents
prefer loan so that they can maintain full control of their businesses. In Ghana, Abor (2005) noted that profitable firms
depend more on debt as their main financing option and that this revealed a significantly positive relation between the
ratio of short-term debt to total assets and ROE.
In South Africa,Clover and Darroch (2005) surveyed 44 small, medium and micro-enterprise agribusinesses in an effort to
identify policies and strategies that can be adopted in order to increase the survival and growth rates of public and private
sector institutions in KwaZulu-Natal (KZN), and documented that funding constraints at start-up and lack of collateral
were some of the constraints that frustrate growth of the enterprises. Sekyewa (2009) analyzed the determinants of
accessibility to long-term finance and its effect on growth of EIB-funded small and medium size enterprises in Uganda’s
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hotel industry. The study recommended that SME management and lending institutions should improve the SMEs’ access
to loan finance by solving the flaws in the factors influencing this access.
A research by Nyanamba et al. (2013) on the factors that determine the capital structure among micro-enterprises, found
out that banks and financial institutions were the most preferred form of debt financing for the micro-enterprises.
3. RESEARCH DESIGN
Njeru (2013) defined research design as the plan showing how the problem under investigation will be solved. This study
adopted descriptive research designs. The target population for the study constituted all the soapstone micro enterprises in
Tabaka Town which are registered by Tabaka Town Council, Kisii County, and all the woodcarving micro enterprises of
Wamunyu Location, Machakos County, which are registered by Wote Town Council. From this population of 2334
respondents, a sample of 330 respondents was divided proportionately between the two regions according to the
proportion of their craft micro enterprises under study, using stratified random sampling. This stratification was done
according to activities which the craft micro enterprise is engaged in (owners of wood species, quarry owners, miners,
carvers, finishers, wholesalers, retailers). The study gathered data using a semi-structured questionnaire, and the data
collected were analyzed by use of descriptive and inferential type of statistics using the statistical package for social
science (SPSS) version 21. The results were then summarized in tables, charts and graphs.
4. FINDNGS AND DISCUSSIONS
4.1 Response Rate:
The study sought to address the objectives by administering and analyzing a questionnaire to the respondents. The study
obtained a response rate of 83.03%. Mugenda and Mugenda (2003) acknowledge a response rate of 50% as being
adequate, 60% and above as good, while 70% and above is rated very good.
4.2 Gender of Respondents:
The study wanted to know the distribution by gender, of the respondents involved in the study. The findings revealed the
following results in figure 1:
Fig. 1: Gender of Respondents
The findings in figure 1 revealed that gender of craft micro entrepreneurs is unfairly skewed in favour of men in the sense
that 83% of the respondents were males while only 77% of the respondents were females. This finding implies that the
industry is dominated by males. This could be due to the fact that traditionally, carving was a male activity and hence
most women see it as a preservative of men to date. Similar findings in gender imbalance had been observed in Obwori et
al. (2012) which found out that, small scale enterprises in soapstone industry were dominated by males who constituted
61% against 39% females; and attributed this to male dominance accompanied by the cultural notion that soapstone
carving was a reserve of men.
Males
83%
Females
17%
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4.3 Respondents’ Age:
The study sought to know the distribution by age, of the respondents involved in the study. The study yielded the results
in table 1.
Table 1: Respondents’ Age
Age Frequency Percentage
Below 18 years 21 7.7
between 18 and 35 years 65 23.7
between 36 and 45 years 149 54.4
between 46 and 55 years 37 13.5
over 55 years 2 0.7
Total 274 100.0
As table 1 summarizes, the study revealed that 7.7% of the respondents were below 18 years old; 23.7% of the
respondents were aged between 18 and 35 years old, 54.4% of the respondents were aged between 36 and 45 years old,
13.5% of the respondents were aged between 46 and 55 years while only 0.7% of the respondents were over 55 years old.
This implies that majority of the respondents are of the age between 18 years and 45 years. The fact that there were few
respondents of the age below 18 years indicates that the profession does not attract under-age persons. It could also be due
to the free primary education that has seen most pupils who would have otherwise dropped out of school continue with
their education. The study also noted a small percentage of respondents who were over 55 years of age probably because
most of the enterprises under study were labour intensive thus the aged could not easily cope.
4.4 Enterprises’ Need for Debt Financing:
The study sought to establish whether the enterprises had borrowed money from financial institutions at some point in
time, and the results were as indicated in figure 2:
Fig. 2: Enterprises’ Need for Debt Financing
From figure 2, the research realized that 87% of the respondents had borrowed from financial institutions at some point
while only 13% of the respondents had not sought for financing from financial institutions at any given time. The reason
why the respondents had sought financing from financial institutions could be due to their inability to raise sufficient
capital from their net income since, as observed by Obwori et al. (2012), the net income from the craft microenterprises
was mainly used to support non-business activities like family upkeep. It could also be because of the need for business
expansion. The finding underscores those of Wanambisi and Bwisa (2013) who stated that only 41.7% of the enterprises
in Kitale Municipality had sought financing.
Yes
87%
No
13%
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4.5 Distribution of Borrowing from Commercial Bank loans:
The distribution of average borrowing from Commercial Bank loans was as indicated from table 2.
Table 2: Average Borrowing from Commercial Bank loans
Amount Frequency Percentage
Less than 20,000 269 98.2
20,001-40,000 3 1.0
40,001-60,000 1 .4
60,001-80,000 1 .4
80,001-100,000 0 .0
Over 100,000 0 .0
Total 274 100.0
The results shown in table 2 show that, only five respondents borrowed over Ksh. 20,000 from Commercial Bank loans
over the span of the three years (2013-2015). This may lead to a conclusion that majority of the respondents in this study
did not get any loan either because they did not have collateral, they feared rejection, they lacked guarantors or they did
not meet the condition for group saving, and this confirms the study by Wanambisi and Bwisa (2013). The majority of the
respondents borrowed between Ksh. 20,001 and Ksh. 40,000. This study is in full support of Kadiri (2009) whose study
concluded that enterprises in Nigeria do not get any financing from commercial banks in Nigeria, Mukiri (2008) who had
observed that only 7.8% of micro entrepreneurs access bank credit annually, and Njuguna (2015) who reported that only
4.6% of entrepreneurs got funds from commercial banks.
4.6 Distribution of Borrowing from SACCOs:
The distribution of average borrowing from SACCOs was as indicated from table 3.
Table 3: Average Borrowing from SACCOs
Amount Frequency Percentage
Less than 20,000 269 97.1
20,001-40,000 3 1.1
40,001-60,000 2 .7
60,001-80,000 3 1.1
80,001-100,000 0 .0
Over 100,000 0 .0
Total 274 100.0
The results in table 3 show that only 8 respondents borrowed from SACCOs over the span of the three years (2013-2015).
Majority of the respondents (98.2%) did not borrow a cent from the SACCOs. This could either signal that the enterprises
are contented with the current capital base; or that they are unable to attract more capital from these sources owing to the
stringent requirements and this could also be as a result of the small number of SACCOs in the County. The low
percentage number of respondents taking loans could also be due to the fact that they do not undertake activities which
guarantee need for external financing. These findings are coherent to those obtained by Lemuel (2009) discovered that
between 1-2% of small businesses in Nigeria borrowed from banks and other financial Institutions, and that of Njuguna
(2015) who reported that only 8.05% of the respondents obtained financing from SACCOs while 4.6% got funds from
commercial banks.
4.7 Reasons for Seeking Debt Financing:
Respondents were asked to indicate the purpose for which debt financing was needed. The findings were as indicated in
figure 3.
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Fig. 3: Need for Debt Financing
Figure 3 shows that 82.8% of the respondents sought debt financing in order to purchase raw material while only 17.2%
of the respondents sought debt funds so as to finance their operations. This finding contravenes that of Eriotis et al.
(2007) who noted that Greek firms rarely use debt financing to offset the financial needs of their business.
4.8 Effect of Debt Financing on Growth of Craft Microenterprises:
The study wanted to know the relationship between debt financing and growth of craft micro enterprises. For this reason,
a regression of debt financing on the growth of craft micro enterprises was done and the findings produced the model
summary shown on table 4. The table indicates that the value of R square for debt financing is 0.181. This means that, in
isolation, debt financing alone accounts for 18.1% of all growth of craft microenterprises, with the remaining 81.9% of
the growth of craft microenterprises being accounted for by other factors. The value of R (0.425) was a clear indication
that there was a positive relationship between debt financing and growth of craft micro enterprises. Although the finding
of this study contradicts that of Babajide (2012) who contended that access to microfinance does not enhance growth of
micro and small enterprises; it supports that of Abor (2005) which contended that short term debts significantly and
positively influenced the performance of a firm.
Table 4: Model Summary for Debt Financing
R R Square Adjusted R Square
.425a
.181 0.086
In order to test the null hypothesis which stated that ‘debt financing has no significant influence on the growth of craft
micro enterprises”, an Analysis of Variance test was used. The findings from the ANOVA were as presented on table 5.
Table 5: ANOVAa
for Influence of Debt Financing on Growth of Craft Micro Enterprise
Sum of Squares df Mean Square F Sig.
Debt financing
Regression 318.85 5 63.77 5.17 .026b
Residuals 3318.01 269 12.33
Total 3636.86 274
a. Dependent variable: Growth of craft micro enterprise
b. Predictors: (Constant), Debt financing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Operations Wage
payment
Purchase of
raw materials
Pay rent
PercentageNumberof
Respondents
Purpose of Financing
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The p-value from table 5 was 0.026 and this was found to be less than the critical value (0.05) and this implied that, at 5%
significance level, debt financing has significant influence on the growth of craft micro enterprises. The study determined
the significance test result for debt financing. The regression equation was to be presented in the form;
Where;
- Coefficient of intercept
-Debt financing
-Error term
Table 6 presents the table of coefficients for the linear regression which led to model (1) below:
…………………………………………(1)
Table 6: Significant Test Results for Debt Financing
Model
Unstandardized
Coefficients
Standardized
Coefficients
Beta t Sig.B Std. Error
(Constant) .218 .126 .141 7.245 .000
DF .193 .072 . 148 8.248 .000
a. Dependent Variable: Growth of Microenterprise
Equation (1) shows that for every 1 unit increase in debt financing, growth of craft micro enterprise is predicted to have
an increase by 0.193 units and that, if no debt financing is used, the enterprise will be having growth of 0.218 units.
The study determined the significance test result for the various constructs of debt financing so as to formulate a
regression model of the form;
Where;
- Coefficient of intercept
- Commercial Bank loans
-SACCO loan
-Error term
The results were as shown on table 7.
Table 7: Significant Test Results for Constructs of Debt Financing
Model
Unstandardized
Coefficients
Standardized
Coefficients
Beta t Sig.B Std. Error
(Constant) .027 .009 3.221 .003
CF .016 .005 .101 5.121 .000
SL .011 .009 .105 3.549 .000
a. Dependent Variable: Growth of Microenterprise
From the results in table 4.7, the following regression model was obtained
…………….(2)
Equation (2) shows that for every 1 unit increase in funding from Commercial Bank loans leads to 0.016 units increase in
growth of the microenterprise; and that one unit increase in use of funds from SACCO loans lead to 0.011 units increase
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in growth of craft micro enterprise. However, if no debt financing is used, the growth rate of the enterprises will be 0.027
units. Since all the two variables had p-values less than 0.05, it led to the conclusion that they were all significant in the
model.
5. CONCLUSION
From the above results, it can be noted that Commercial finance companies and SACCOs are the major sources of debt
financing that had are preferred the craft micro enterprises. This finding contradicts that of Wanambisi and Bwisa (2013)
who lamented that, despite the efforts of microfinance institutions to take microfinance services within the reach of poor
people and MSEs that have not benefited from the conventional formal financial system, growth and expansion of MSEs
sector had not shown any sign of growth and expansion.
6. RECOMMENDATIONS
Based on the above conclusions, the study recommends that financial institutions should lessen their restrictions on the
requirements for one to qualify for a loan, for instance, the need for collateral, because the micro enterprises hardly have
collateral, while this is deemed to be one of the requirements for a business to qualify for a loan. The government should
also sensitize the proprietors in this industry on book keeping, since it was observed that majority of the respondents
under investigation did not have proper records regarding their businesses’ financial progress. This is deemed important in
the sense that some of the financial institutions demand financial records and/or bank statements so as to analyze before
concluding on whether or not to award a loan.
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