Factors influencing rural women entrepreneurs to access micro credit services in Sirisia Division, Kenya

Abstract

This study was designed to investigate factors influencing rural women entrepreneurs to access micro credit services in Sirisia Division. The study aimed at finding out how infrastructure, education, traditions, collateral requirements and technology influenced rural women entrepreneurs to access micro credit services even in the advent of affordable rates. This study adapted a descriptive survey design as a major method of research where questionnaires were used to collect data from a sample of women entrepreneurs under the study. The instruments of data collection were reliable having been tested through the Test Rest approach. Concerning the validity of the instruments, content validity was applied to ensure that the instruments represented what they were designed to measure. The target population was 488 women entrepreneurs according to locations.

A sample of 220 women entrepreneurs was selected through systematic random sampling. Collected data was then analyzed by use of descriptive statistics constituting frequencies and percentages. Previous studies had shown that microfinance institutions played a vital role in the economic development of many developing countries through the provision of a wide range of financial products and services to the rural poor, low-income households and micro and small enterprise. The study revealed that access to credit facilities by rural women entrepreneurs was greatly influenced by poor infrastructure, low level of education, inadequate collateral requirements and inappropriate technology.

It then concluded that women entrepreneurs needed education and sensitization on business and financial management as well as embracing technology so as to minimize defaulting and exits. The study recommended that the policy makers put into consideration rural road network development and rural electrification so that rural women entrepreneurs enjoy doing businesses in the remote areas where their businesses operate and this will benefit even those outside the division and the society at large. Sensitization on the rights of women on property ownership should be reinforced for them to use valuable assets as security for loans. Rural women entrepreneurs also need technological enlightenment to enable them carry out activities concerning their businesses without relying on those with the knowhow. This will help them save on time and resources.