The effect of women enterprise fund on the financial performance of female owned enterprises in Mombasa region

Abstract

This study sought to identify the impact of the Government initiated Women Enterprise Fund in enhancing profitability for Female entrepreneurs in Kenya particularly in the Mombasa Region. With the introduction of various sources of leverage for the modern day Kenyan businesswomen, it is not clear whether the Government initiative to offer cheaper source of Fund through the Women Enterprise Fund has borne fruit. The study adopted an events study design of a selected sample in Mombasa. Both primary and secondary data sources were used. Primary data was collected using questionnaires, some which were administered through interviews. The study was targeted towards female run enterprises in Mombasa who had received funding from the Women Enterprise Fund through the appointed financial intermediaries. The researcher preferred the business owners who were in a position to make financial decisions for their companies and offer quality information. Secondary data was collected through documented journals, previous MBA research projects, newspaper articles and Government Session papers. Data was analyzed using quantitative approach and financial performance was the key parameter of performance to determine business growth The study recommends that the Women Enterprise Fund be made accessible to more women through reduction of stringent measures which are currently in place as prequalifications for the loan in most of the intermediaries. It also found that the amounts of loan being offered were not adequate to meet business capital needs and this needs to be increased so as to be effective.