IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v10y2021i3p357-362.html
   My bibliography  Save this article

Covid-19 financial distancing for MSMEs in Kenya

Author

Listed:
  • Nathan Mwenda Mutwiri

    (Kenyatta University, School of Business, Nairobi, Kenya)

Abstract

The Micro Small and Medium Enterprises (MSMEs) are important for every nation’s economic development. They provide employment and spur the growth of multiple sectors in the economy. The Covid-19 pandemic has negatively affected MSMEs' performance. The study seeks to demonstrate why COVID 19 may lead to the terminal quarantining of MSMEs. The study is anchored on decision usefulness and information asymmetry theories. The study adopted a descriptive research methodology and sampled MSMEs within Nairobi City County. The study used SPSS to analyze data in addition to Microsoft excel. The study found that over 70% of MSMEs had their sales decline by over 65% while 95% of them had their sales decline by over 30%. The study found that about 68% of MSMEs lacked financial management skills. The study recommends that with legal and institutional reforms, the government needs to develop a financing framework for MSMEs. Key Words:Covid 19, Pandemic, Financial Distancing, MSMEs

Suggested Citation

  • Nathan Mwenda Mutwiri, 2021. "Covid-19 financial distancing for MSMEs in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(3), pages 357-362, April.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:3:p:357-362
    DOI: 10.20525/ijrbs.v10i3.1110
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/1110/858
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v10i3.1110
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v10i3.1110?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:kap:iaecre:v:17:y:2011:i:4:p:476-483 is not listed on IDEAS
    2. Jaroslaw Ropega, 2011. "The Reasons and Symptoms of Failure in SME," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(4), pages 476-483, November.
    3. Adele Atkinson, 2017. "Financial Education for MSMEs and Potential Entrepreneurs," OECD Working Papers on Finance, Insurance and Private Pensions 43, OECD Publishing.
    4. Nunoo, Jacob & Andoh, Francis K., 2011. "Sustaining Small and Medium Enterprises through Financial Service Utilization: Does Financial Literacy Matter?," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123418, Agricultural and Applied Economics Association.
    5. Kabiru Isa Dandago, 2013. "Decision Usefulness Approach to Financial Reporting: A Case for Malaysian Inland Revenue Board," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(6), pages 772-784, June.
    6. Beck, Thorsten & Demirguc-Kunt, Asli, 2006. "Small and medium-size enterprises: Access to finance as a growth constraint," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2931-2943, November.
    7. Hezron Mogaka Osano & Hilario Languitone, 2016. "Factors influencing access to finance by SMEs in Mozambique: case of SMEs in Maputo central business district," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-16, 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. Mariana Sedliačiková & Maria Moresová & Josef Drábek & Václav Kupčák, 2021. "The Significance of Controlling in Enterprises in Emerging Economies," Central European Business Review, Prague University of Economics and Business, vol. 2021(5), pages 99-113.
    2. Betgilu Oshora & Goshu Desalegn & Eva Gorgenyi-Hegyes & Maria Fekete-Farkas & Zoltan Zeman, 2021. "Determinants of Financial Inclusion in Small and Medium Enterprises: Evidence from Ethiopia," JRFM, MDPI, vol. 14(7), pages 1-19, June.
    3. Phan, Trang Hoai & Stachuletz, Rainer & Nguyen, Hai Thi Hong, 2022. "Export Decision and Credit Constraints under Institution Obstacles," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 132783, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Trang Hoai Phan & Rainer Stachuletz & Hai Thi Hong Nguyen, 2022. "Export Decision and Credit Constraints under Institution Obstacles," Sustainability, MDPI, vol. 14(9), pages 1-27, May.
    5. Golam Rabbani & S N Rajesh Raj, 2024. "The role of financial constraints in firm transition—Evidence from Indian manufacturing," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(4), pages 2193-2228, May.
    6. Cowling, Marc, 2010. "The role of loan guarantee schemes in alleviating credit rationing in the UK," Journal of Financial Stability, Elsevier, vol. 6(1), pages 36-44, April.
    7. Osei-Tutu, Francis & Weill, Laurent, 2023. "Individualism reduces borrower discouragement," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 370-385.
    8. Oznur Ozdamar & Eleftherios Giovanis & Sahizer Samuk, 2020. "State business relations and the dynamics of job flows in Egypt and Turkey," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 519-558, December.
    9. Knack, Steve & Xu, Lixin Colin, 2017. "Unbundling institutions for external finance: Worldwide firm-level evidence," Journal of Corporate Finance, Elsevier, vol. 44(C), pages 215-232.
    10. Dimelis, Sophia & Giotopoulos, Ioannis & Louri, Helen, 2015. "Can firms grow without credit?: evidence from the Euro Area, 2005-2011: a quantile panel analysis," LSE Research Online Documents on Economics 61157, London School of Economics and Political Science, LSE Library.
    11. kemdong nicodeme TENEKEU, 2020. "Les déterminants de la pérennité des institutions de microfinance au Cameroun," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 11(1), pages 122-138, June.
    12. Cristina Fernández & Roberta García & Paloma Lopez-Garcia & Benedicta Marzinotto & Roberta Serafini & Juuso Vanhala & Ladislav Wintr, 2017. "Firm growth in Europe: An overview based on the COMPNET labour module," BCL working papers 107, Central Bank of Luxembourg.
    13. Florentina Melnic & Daniel Juravle, 2020. "Governance And Access To Finance," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 25, pages 151-168, June.
    14. Howard Bodenhorn, 2016. "Two Centuries of Finance and Growth in the United States, 1790-1980," Working Papers id:11352, eSocialSciences.
    15. Balila Acurio & Alessandro Tomarchio, 2024. "The Effects of Business Credit Support Programs: Evidence from a Regression Discontinuity Design," IHEID Working Papers 20-2024, Economics Section, The Graduate Institute of International Studies.
    16. Shusen Qi & Steven Ongena & Hua Cheng, 2022. "Working with women, do men get all the credit?," Small Business Economics, Springer, vol. 59(4), pages 1427-1447, December.
    17. Dileni Gunewardena & Abdoulaye Seck, 2020. "Heterogeneity in entrepreneurship in developing countries: Risk, credit, and migration and the entrepreneurial propensity of youth and women," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 713-725, August.
    18. Singh, Nirvikar, 2018. "Financial Inclusion: Concepts, Issues and Policies for India," MPRA Paper 91047, University Library of Munich, Germany.
    19. Emmanuel J. Munishi & Pauline N. Songa & Mubarack H. Kirumirah, 2023. "Challenges to Accessing Credit Financing from Financial Institutions by the Urban Based Street Vendors: Experience from Dar Es Salaam – Tanzania," International Journal of Business and Management, Canadian Center of Science and Education, vol. 17(1), pages 1-65, February.
    20. Sebastian Doerr & Thomas Drechsel & Donggyu Lee, 2021. "Income inequality, financial intermediation, and small firms," BIS Working Papers 944, Bank for International Settlements.

    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:rbs:ijbrss:v:10:y:2021:i:3:p:357-362. 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: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    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.