An Assessment Of Accessibility Of Credit By Rural Small And Medium Enterprises (Smes) Within Migori County, Kenya.

Abstract

The research focus on an assessment of accessibility of credit by rural SMEs within Migori County. The study intended to have a significant role to lending facilities, entrepreneur owners, wealth investors, and the county government of Migori to accelerate the formation of various policies regarding credit and also support other scholars on literature review. With the accessibility of credit serving as a dependent variable, the research examined interest rates charged, collaterals, financial institutions and literacy levels as predictor variables. Descriptive research methodology was employed. The population target was 1020 Small and Medium Enterprises operating within Migori County. A stratified Random sampling technique was employed and then followed by simple random sampling to select respondents from the selected strata. From the strata 102 respondents were selected as a sample size. The questionnaires were distributed by means of drop and pick technique. The statistics analysis was done using SPSS to capture both descriptive and inferential statistics. The study however, found that the interest rate, financial institutions had a positive relationship and were all significant while the collateral and literacy levels had a strong relationship but they were all insignificant. Therefore, the study recommends that the policy makers and the government should review the rates of interest and support training SMEs owners to impact the skills and create financial institutions network among the SMEs and also establish a diverse form of security for loans. The study also suggests further research using a larger sample and the research extended to other counties in Kenya.