Microcredit Services and Performance of Women Owned Enterprises in Kilifi County, Kenya
Authors: Julius Saumu Sidi , Rugami Maina 
Published: December 2020

Women owned enterprises play an important role in ensuring the growth of an economy. However, most of these businesses face challenges including limited access to credit facilities and limited skills among women owners. Commercial banks have consistently remained reluctant to advance credit facilities among low income earners who mostly comprise of these women owned enterprises. Majority of the women owned enterprises are still at micro level with limited ability to transact in larger profitable firms because of limited access to financial resources. The main economic activities that the youth and women are engaged in Kilifi County include small scale business/trade, mining industry, bodaboda business, Mnazi tapping, Casuallabour and commercial sex. Despite this, the youth and women are faced with a myriad of challenges which include poor/low pay, exploitation, health Complications, unwanted pregnancies, HIV infections. Some of the ways in which these challenges facing women engaged in business in Kilifi County can be managed include; capacity building/education, government financial support, enforcement of laws of child labour, guidance and counseling and creation of employment. There has been a rise in the number of women owned enterprises in the County with the advent of county government system. The County Government of Kilifi has given opportunities and credit to youth, special needs group and women to start or expand their businesses and also get procurement opportunities. However these women owned enterprises have had challenges with sufficient financing especially from microfinance institutions in the County. The study sought to bridge the gap by establishing the effect of Microfinance Services and performance of women owned enterprises in Kilifi County, Kenya. The study was guided by the following objectives; to establish the effect of loan facilities, saving services, influence of financial literacy and convenience and reputation of credit institutions on performance of women owned enterprises in Kilifi County, Kenya. The study was anchored on the following theories; Resource based view theory and Social Learning theory. The study used descriptive research design. The population of the study was 1281 women owned enterprises. The study applied stratified random sampling technique. The sample size was therefore296 women owners of registered enterprises in Kilifi County. The collected data wasbe qualitative and quantitative in nature. To analyze qualitative data, content analysis was employed. For quantitative data, the researcher employed both descriptive and inferential statistics for analysis that covered means, standard deviations and regression analysis. The study established that microfinance services had a positive effect on the performance of women owned enterprises in Kilifi County. The study concluded that there were significant microfinance services provided by MFIs in Kilifi County for women-owned enterprises in Kilifi County. The study concluded that microfinance services offered by MFIs positively and significantly influenced the performance of women-owned enterprises in Kilifi County. It was concluded further that some of the enterprises were not aware of the microfinance services offered by MFIs in Kilifi County. The study recommends that the women-owned enterprises need to be sensitized on the available microfinance services and how to access them. The study recommends that the enterprises need to improve their saving culture to enhance their capital base and financial performance.