IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i2p1326-1340.html
   My bibliography  Save this article

Influence of Government Sponsored Enterprise Funds-Credit Services on the Growth of Group-Based Micro and Small Enterprises in Kenya

Author

Listed:
  • Catherine W. Gathitu

    (PhD student, Kirinyaga University)

  • Dr David Kabata

    (School of Business and Education, Department of Business Studies, Kirinyaga University)

  • Dr Grace Kiiru

    (School of Business and Education, Department of Business Studies, Kirinyaga University)

Abstract

The purpose of this study was to analyse the influence of Government Sponsored Enterprise credit services on the growth of group-based Micro and Small Enterprises in Kenya. The study was anchored on Resource based theory and Entrepreneurial orientation theory. A concurrent triangulation mixed methodology design was adopted for this study. The target population comprised of 51 officers from Government Sponsored Enterprise Funds and 600 group leaders of group based Micro and small Enterprises who are beneficiaries of Youth Enterprise Development Fund, Women Enterprise Funds and Uwezo Fund in Nairobi County since 2013. The study used proportionate stratified random sampling for the group based enterprises and census for Government Sponsored Enterprise Funds officers. The study Sample size of 240 leaders of group based enterprises was calculated using Yamanes formula and a census of 51 officers of Government Sponsored Enterprise Funds. The study collected primary data using questionnaires and interviews. The study used both qualitative and quantitative statistics. Qualitative data was analyzed thematically along the study objectives and presented in narrative and verbatim form while quantitative data was analyzed using descriptive and inferential statistics. The descriptive analysis included mean, frequencies, percentages and standard deviation while the inferential analysis undertaken was simple linear regression to establish the relationship between credit services and the growth of Micro Small Enterprises. It also assessed the mediating role of group characteristics on the relationship between credit services and the growth of Micro and Small Enterprises in Kenya. Quantitative data was presented using tables. The study found that credit services have a significant influence on the growth of group-based MSEs in Nairobi County, Kenya. Group characteristics partially mediate the relationship between credit services and MSE growth. The study recommends increasing funding limits, empowering group leaders, aligning fund requirements with group-owned enterprises, and developing policies that recognize their unique needs.

Suggested Citation

  • Catherine W. Gathitu & Dr David Kabata & Dr Grace Kiiru, 2024. "Influence of Government Sponsored Enterprise Funds-Credit Services on the Growth of Group-Based Micro and Small Enterprises in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 1326-1340, February.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:2:p:1326-1340
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-2/1326-1340.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/influence-of-government-sponsored-enterprise-funds-credit-services-on-the-growth-of-group-based-micro-and-small-enterprises-in-kenya/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ademola Abimbola O & Ben-Caleb Egbide & Adegboyegun Adekunle E & Eluyela Damilola F & Falaye Adebanjo J & Ajayi Abiodun S, 2020. "Rotating and Savings Credit Association (ROSCAs): A Veritable Tool for Enhancing the Performance of Micro and Small Enterprises in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(2), pages 189-199.
    2. Muhammad Farhan Jalil & Azlan Bin Ali & Zeeshan Ahmed, 2022. "Microfinance services and MSE growth in Pakistan: The mediating perspective of social and psychological capital," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(1), pages 93-130.
    3. Oluwayemisi Adebola Abisuga-Oyekunle & Swapan Kumar Patra & Mammo Muchie, 2020. "SMEs in sustainable development: Their role in poverty reduction and employment generation in sub-Saharan Africa," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 12(4), pages 405-419, June.
    4. M. Wright & S. Marlow, 2012. "Entrepreneurial Activity in the Venture Creation and Development Process," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/799, Ghent University, Faculty of Economics and Business Administration.
    5. Md. Humayun Kabir & S.S.M. Sadrul Huda & Omar Faruq, 2020. "Mobile Financial Services In The Context Of Bangladesh," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 9(3), pages 83-98.
    6. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    7. Lukeš, Martin & Longo, Maria Cristina & Zouhar, Jan, 2019. "Do business incubators really enhance entrepreneurial growth? Evidence from a large sample of innovative Italian start-ups," Technovation, Elsevier, vol. 82, pages 25-34.
    8. Anne Kimari & San Lio & Agnes Ogada, 2022. "The effect of ease of access on financial prosperity of micro and small entrepreneurs in Nairobi County, Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 314-323, September.
    9. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    10. Lea Mergemeier & Jessica Moser & Tessa Christina Flatten, 2018. "The influence of multiple constraints along the venture creation process and on start-up intention in nascent entrepreneurship," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 30(7-8), pages 848-876, August.
    11. Beza Muche Teka, 2022. "Determinants of the sustainability and growth of micro and small enterprises (MSEs) in Ethiopia: literature review," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-16, December.
    12. Ademola Abimbola. O & Ben-Caleb Egbide & Adegboyegun Adekunle. E & Eluyela Damilola. F & Falaye Adebanjo. J & Ajayi Abiodun. S., 2020. "Rotating and Savings Credit Association (ROSCAs): A Veritable Tool for Enhancing the Performance of Micro and Small Enterprises in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(2), pages 189-199, February.
    13. Chao Hung Wang, 2020. "An environmental perspective extends market orientation: Green innovation sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3123-3134, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. André de Abreu Saraiva Monteiro Alves & Fernando Manuel Pereira de Oliveira Carvalho, 2022. "How Dynamic Managerial Capabilities, Entrepreneurial Orientation, and Operational Capabilities Impact Microenterprises’ Global Performance," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    2. Michael Sheppard, 2020. "The relationship between discretionary slack and growth in small firms," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 195-219, March.
    3. Francis Lwesya & Adam Beni Swebe Mwakalobo, 2023. "Frontiers in microfinance research for small and medium enterprises (SMEs) and microfinance institutions (MFIs): a bibliometric analysis," Future Business Journal, Springer, vol. 9(1), pages 1-18, December.
    4. Taiwo Hussainat Idiaro & Ibikunle Afeez Kayode & Samuel Oluwatumise Olatunbosun & Bello Taofik Abidemi & Iliyasu Shiyanbade Najeemdeen, 2019. "The Relationship between Entrepreneur Orientation and Performance," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(1), pages 31-35, March.
    5. Esthela Galván-Vela & Eduardo Arango Herrera & Deisy Milena Sorzano Rodríguez & Rafael Ravina-Ripoll, 2021. "State-of-the-Art Analysis of Intrapreneurship: A Review of the Theoretical Construct and Its Bibliometrics," JRFM, MDPI, vol. 14(4), pages 1-16, April.
    6. Ta-Kai Yang & Min-Ren Yan, 2019. "Exploring the Enablers of Strategic Orientation for Technology-Driven Business Innovation Ecosystems," Sustainability, MDPI, vol. 11(20), pages 1-19, October.
    7. Akim Tafadzwa Lukwa & Feyisayo Odunitan-Wayas & Estelle Victoria Lambert & Olufunke A. Alaba & on behalf of the “Savings for Health” IDRC Collaborators, 2022. "Can Informal Savings Groups Promote Food Security and Social, Economic and Health Transformations, Especially among Women in Urban Sub-Saharan Africa: A Narrative Systematic Review," Sustainability, MDPI, vol. 14(6), pages 1-26, March.
    8. Jelle Schepers & Wim Voordeckers & Tensie Steijvers & Eddy Laveren, 2020. "Long-Term Orientation as a Resource for Entrepreneurial Orientation in Private Family Firms: The Need for Participative Decision Making," Sustainability, MDPI, vol. 12(13), pages 1-22, July.
    9. James J. Chrisman & Alan Bauerschmidt & Charles W. Hofer, 1998. "The Determinants of New Venture Performance: An Extended Model," Entrepreneurship Theory and Practice, , vol. 23(1), pages 5-29, October.
    10. Chonnatcha Kungwansupaphan & Jibon Kumar Sharma Leihaothabam, 2019. "Entrepreneurial Orientation, Performance And The Moderating Role Of Institutional Capital: A Case Study Of Female Entrepreneurs In Thailand," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-20, June.
    11. Navarro-García, Antonio & Ledesma-Chaves, Pablo & Gil-Cordero, Eloy & De-Juan-Vigaray, María Dolores, 2024. "Intangible resources, static and dynamic capabilities and perceived competitive advantage in exporting firms. A PLS-SEM/fsQCA approach," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    12. Silvia Ayuso & Francisco Ernesto Navarrete‐Báez, 2018. "How Does Entrepreneurial and International Orientation Influence SMEs' Commitment to Sustainable Development? Empirical Evidence from Spain and Mexico," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(1), pages 80-94, January.
    13. van Rijnsoever, Frank J. & Eveleens, Chris P., 2021. "Money Don't matter? How incubation experience affects start-up entrepreneurs' resource valuation," Technovation, Elsevier, vol. 106(C).
    14. Hanna Rydehell & Anders Isaksson & Hans Löfsten, 2019. "Effects Of Internal And External Resource Dimensions On The Business Performance Of New Technology-Based Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-29, January.
    15. Kudakwashe Joshua Chipunza & Ashenafi Beyene Fanta, 2024. "Asset accumulation, financial inclusion and subjective well‐being: The role of financial formality in South Africa's households," Review of Development Economics, Wiley Blackwell, vol. 28(1), pages 128-150, February.
    16. Jorge A. Durán-Encalada & Juan M. San Martin-Reyna & Héctor Montiel-Campos, 2012. "A Research Proposal to Examine Entrepreneurship in Family Business," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 8(3), pages 58-77.
    17. Patrick Behr & Jorge Jacob, 2024. "Neighbourhood social capital, account usage and savings behaviour in low‐income countries: Field experimental evidence from Senegal," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(1), pages 84-108, January.
    18. Rouma Bucktowar & Akin Kocak & Kesseven Padachi, 2015. "Entrepreneurial Orientation, Market Orientation And Networking: Impact On Innovation And Firm Performance," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-22, December.
    19. Yalin Jiang & Wei Cai & Yu Wang, 2024. "Change starts within: does managerial ability matter to green innovation?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    20. Muhammad Imran, Hassan Mujtaba Nawaz Saleem, Jawad Iqbal, S. M. Tariq Rafi, 2020. "Entrepreneurial Orientation and Firm's Export Performance: Evidence from Surgical Industry," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 7(1), pages 47-63, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:2:p:1326-1340. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.