A survey of the determinants of access to credit by women entrepreneurs in Toi market, Nairobi county

Abstract

The purpose of this study was to assess the determinants of access to credit by women entrepreneurs in TOI market, Nairobi County. The study was guided by the following research question: what are determinants of access to credit by women entrepreneurs in Nairobi. The research design was descriptive survey study in nature since it focused on more than one woman enterprises and it also focused on the status quo, in addition to describing the level of access by women entrepreneurs in Toi market. The target population of the study was the women entrepreneurs at TOI market. A sample of 40 stalls was selected from the Toi market traders whose stalls are located in section A and B using the random sampling technique. Both qualitative and quantitative data was collected using a questionnaire that consisted of both open ended and close ended questions. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results presented in frequency tables to show how the responses for the various questions posed to the respondents. The data was then analyzed in terms of descriptive statistics like frequencies, means and percentages. Results indicated that several factors determined the access of credit by women entrepreneurs. These factors include age of business, size of business, level of education, capital invested, financial records and risk preference. All factors had a significant effect on access to credit and hence indicated that there was a low level of access to credit. The study concludes that women had low access to credit from the banks. It was also possible to conclude that the access to credit by women and the performance of women SMEs significantly differs from that of men because men are favored than the women. It was also possible to conclude that age of business, size of business, level of education, age and capital invested influence the level of access to credit by women from banks. The study recommended that measures such as finance training, education and ownership of resources such as land and property be emphasized and women encouraged to take the various available opportunities. This is because such measures would increase their level of credit access.