dc.contributor.author |
Mutinda, Amos K. |
|
dc.contributor.author |
Ombati, Robert M. |
|
dc.contributor.author |
Wamitu, Susan N. |
|
dc.date.accessioned |
2020-12-08T07:23:20Z |
|
dc.date.available |
2020-12-08T07:23:20Z |
|
dc.date.issued |
2019-06 |
|
dc.identifier.citation |
International Journal of Economics, Commerce and Management United Kingdom, Vol. VII, Issue 6 |
en_US |
dc.identifier.issn |
2348-0386 |
|
dc.identifier.uri |
http://ijecm.co.uk/wp-content/uploads/2019/06/7625.pdf |
|
dc.identifier.uri |
http://repository.seku.ac.ke/handle/123456789/6154 |
|
dc.description.abstract |
Small and medium enterprises (SME's) play a critical role in an economy. The objective of the
study was to establish financial factors that affect access to credit among SMEs in Machakos
town sub-county. Specifically, the study sort to find out the influence of collateral requirements,
the effect of cost of credit on access to credit and the effect of financial information asymmetry
among SME’s on access to credit in Machakos Town Sub-county, Kenya. It also sort to
establish the effect of business risk on access to credit among SMEs in Machakos Town SubCounty. The study was guided by relevant theories i.e. Credit rationing theory, Information
asymmetry theory, pecking order theory and trade-off theory. The study employed descriptive
study design. Stratified sampling technique was applied. Data was gathered using
questionnaires with the help of a research assistant. The questionnaires were administered using the drop and pick method. The data was analysed by use of SPSS. The study found out
that cost of credit such as process and insurances fees are key determinant to access to credit
among small and medium enterprises in Kenya. The study also found out that business risk
affect access to credit thus financial institutions would not want to finance such businesses with
high risks. The study found out that it is difficult to avail all financial information required about
the businesses in order to access to credit. The study concluded that the cost of credit is a key
determinant to access to credit while business risk make Kenya financial institutions shy away
from lending to small and medium enterprises in Kenya. The study also concluded that financial
information asymmetry between lenders and borrowers of credit affects access to credit by
access to credit small and medium enterprises in Kenya. |
en_US |
dc.language.iso |
en |
en_US |
dc.publisher |
IJECM Pub UK |
en_US |
dc.subject |
Collateral Requirement |
en_US |
dc.subject |
Cost of Credit |
en_US |
dc.subject |
Financial Information Asymmetry |
en_US |
dc.subject |
Business Risks |
en_US |
dc.subject |
Access to Credit |
en_US |
dc.subject |
SMEs |
en_US |
dc.subject |
Kenya |
en_US |
dc.title |
Financial factors affecting access to credit among small and medium enterprises in Machakos town sub-county, Kenya |
en_US |
dc.type |
Article |
en_US |