Browsing by Author "Simba, Victor O."

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    The Effect Of Social Economic Profile On Access To Credit Among SMEs In Utawala Ward, Nairobi County
    (KCA University, 2023) Simba, Victor O.
    Thriving SMEs are increasingly being regarded as key drivers toward job creation, economic growth and poverty eradication. If SMEs can have access to affordable credit, the overall entrepreneurial habits of citizens will improve, which will be a major boost in addressing poverty and income disparities. This study aimed at determining the effect of social economic profile on access to credit among SMEs in Utawala Ward, Nairobi County. The objectives were to: (1) Determine the effect of financial literacy on access to credit among SMEs; (2) Analyse the effect of social capital on access to credit among SMEs; and (3) Analyse the effect of income diversification on access to credit among SMEs in Utawala Ward. The study adopted the descriptive research design and stratified sampling technique to find a sample of 303 SMEs (representing a population of 1,279 SMEs). A pilot test was conducted using 30 SMEs from Mihang‟o Ward, which neighbours Utawala. Data collected was analysed using a combination of descriptive and inferential statistics. First, the study found out that social economic profile had a significant effect on access to credit: R=9.5%, p<0.000. Additionally, financial literacy had positive insignificant effect on access to credit by SMEs; β=0.072, p=0.400. Second, it emerged that social capital had positive insignificant effect on access to credit by SMEs; β=0.049, p=0.559. Third, the findings showed that income diversification had positive significant effect on access to credit by SMEs; β=0.049, p<0.000. The study recommends that SMEs need to diversify income as this would enhance credit access. Also, SMEs owners need to be trained on financial training to sharpen their financial skills. Lastly, government should organise trade fairs for SMEs to offer avenues for them to social network.