The Influence Of Access To Banking Services On The Performance Of Business Owned By Women :The Case Of Meru Municipality

Abstract

The goal of banks is to promote economic development by supporting businesses through provision of credit facilities and a culture of savings amongst individuals and businesses. By international standards, the level of penetration of banking services in Kenya is very low. The purpose of this study was to investigate the influence of banking services on business performance of women enterprises in Meru Municipality. This study employed descriptive survey design by use of questionnaires. According to the Ministry of Trade Imenti North District there are approximately 360 women owned businesses within Meru municipality Central Business District (CBD).This research used probability sampling design. Stratified simple random sampling was used to take a sample from the target population. This research used self administered drop and pick questionnaires with closed and open ended questions to ensure consistency and getting the independent respondents view. The researcher edited, coded, classified and tabulated the data. The researcher also used statistical tools in data analysis such as measures of central tendency to reduce the large volume of raw data to an extent to which it can be read easily and used for further analysis. Data collected was analyzed using descriptive statistics. The study found that majority of the women entrepreneurs had borrowed a loan from a commercial bank but also majority of them got capital from loans from micro finance institutions. The study found that majority of the women entrepreneurs used an agent for banking services to get services such as cash withdrawal, mini statements and cash deposits. Also, majority of the women entrepreneurs used mobile banking services weekly. Moreover, majority of the women entrepreneurs used bank account weekly. The study concludes that only a few women had borrowed a loan from a commercial bank. They preferred banking with the agent than in the banking hall due to flexible hours of operation. Agency banking improved the performance of the business to a fair extent. The quality of service offered by mobile banking was high. They were hindered to operate a bank account by lack of information on accounts. Banking had improved the performance of the business to a great extent. The study recommends that financial institutions should encourage women to take loans. This can be done by ensuring there is no discrimination between women and men while giving loans. Mobile banking should be encouraged among women. They need to be told of the benefits and how it eases transactions.