Financial Resource as Drivers of Performance in Small and Micro Enterprises in Service Retail Sector: a Case of Eldoret Municipality, Uasin Gishu Country, Kenya

Small and Micro businesses play a key role in economic growth. They are also a major source of innovation in creating new products technologies and services. Despite availability of resources to start or operate men and women owned businesses there exist disparity in performance especially in growth and size, with women registering lower performance compared to men. Research indicates that women owned small businesses continue to lag behind in terms of growth and size compared (Coleman, 2007) to men owned small businesses. The main objective of this study was to examine the effect of the relationship between firms‟ Resources use on performance of women-owned and men-owned SMEs. This research explored the relationship between Gender variation in Financial resources use and performance of SMEs. GJHSS-E Classification : FOR Code: 140207 Financial Resource asDriversofPerformancein Small and MicroEnterprises in Service RetailSectora Case ofEldoret Municipality,Uasin Gishu Country,Kenya Strictly as per the compliance and regulations of: Financial Resource as Drivers of Performance in Small and Micro Enterprises in Service Retail Sector: a Case of Eldoret Municipality, Uasin Gishu Country, Kenya Prof . Margaret White , Prof.Loice Maru σ & Rose J Boit ρ AbstractSmall and Micro businesses play a key role in economic growth. They are also a major source of innovation in creating new products technologies and services. Despite availability of resources to start or operate men and women owned businesses there exist disparity in performance especially in growth and size, with women registering lower performance compared to men. Research indicates that women owned small businesses continue to lag behind in terms of growth and size compared (Coleman, 2007) to men owned small businesses. The main objective of this study was to examine the effect of the relationship between firms‟ Resources use on performance of women-owned and menowned SMEs. This research explored the relationship between Gender variation in Financial resources use and performance of SMEs. The study adopted explanatory survey study design. A sample of 600 was drawn from a target population of 1200 SMEs in the service sector in Eldoret Municipal Council, UasinGishu County. Both women and men business owners were divided in the sample and a simple random technique was employed where a sample of 600 was obtained. The study employed quantitative methods of data collection. Secondary data was collected from Libraries, resource centres, financial institutions and relevant government ministries. Primary data was collected through the use of questionnaire and interview schedule. Data was sorted; coded and analyzed using SPSS packages Version 17. The data obtained were analyzed using inferential statistics namely Analysis of Variance (ANOVA) and Independent sample t test, methods. The whole Cronchbah reliability was 0.935. The study found out financial resource (r=135, p>0.01)) had no significant correlation with firm performance, which showed that all the predictors account for 66.5% variation for performance of SMEs. The study concludes a financial and capital resource is important in the performances of both women and men headed firms. The study recommends the gender men and women should be encouraged to access financial resource and maximize the utilization of this resource adequately. The government of Kenya should integrate and mainstream gender issues on resources use in their policies in order to be adopted by business owners Small and Micro businesses play a key role in economic growth. They are also a major source of innovation in creating new products technologies and services. Despite availability of resources to start or operate men and women owned businesses there exist disparity in performance especially in growth and size, with women registering lower performance compared to men. Research indicates that women owned small businesses continue to lag behind in terms of growth and size compared (Coleman, 2007) to men owned small businesses. The main objective of this study was to examine the effect of the relationship between firms‟ Resources use on performance of women-owned and menowned SMEs. This research explored the relationship between Gender variation in Financial resources use and performance of SMEs. The study adopted explanatory survey study design. A sample of 600 was drawn from a target population of 1200 SMEs in the service sector in Eldoret Municipal Council, UasinGishu County. Both women and men business owners were divided in the sample and a simple random technique was employed where a sample of 600 was obtained. The study employed quantitative methods of data collection. Secondary data was collected from Libraries, resource centres, financial institutions and relevant government ministries. Primary data was collected through the use of questionnaire and interview schedule. Data was sorted; coded and analyzed using SPSS packages Version 17. The data obtained were analyzed using inferential statistics namely Analysis of Variance (ANOVA) and Independent sample t test, methods. The whole Cronchbah reliability was 0.935. The study found out financial resource (r=135, p>0.01)) had no significant correlation with firm performance, which showed that all the predictors account for 66.5% variation for performance of SMEs. The study concludes a financial and capital resource is important in the performances of both women and men headed firms. The study recommends the gender men and women should be encouraged to access financial resource and maximize the utilization of this resource adequately. The government of Kenya should integrate and mainstream gender issues on resources use in their policies in order to be adopted by business owners