Effect of micro finance on performance of women owned enterprises, in Kisumu City, kenya

Micro financing is the provision of financial services to low-income clients or solidarity lending groups that lack access to banking and its related services. Traditionally, women based enterprises have not been favoured by the mainstream credit policies of the commercial banks owing to their inability to raise collateral securities to guarantee the loans. The general objective of this study was to determine the effect of micro financing on the performance of women owned enterprises in Kisumu City. Specifically, the study sought to determine the effect of microfinance on productivity, profitability and growth and expansion of women owned enterprises. The study population comprised 3000 registered women businesses. A sample of 341 was drawn. Clustering, simple random and purposive sampling approaches were applied. Primary and secondary data were used. Questionnaire and interview were used to obtain primary data. Quantitative data was analysed by use of both the descriptive and inferential statistics. The results indicated that micro financing in sufficient quantities would have greater effect on profitability, productivity and growth and expansion of women owned enterprises. The outcome of the study would be significant in reformulating women business credit policies, for improving credit services to entrepreneurs.