effect of micro-finance institutions in development of micro -small enterprises in narok town

Abstract

Microfinance emerged as a noble substitute for informal credit and an effective and Powerful instrument for poverty reduction among people, who are economically active, but financially constrained and vulnerable in various countries. The study was carried out to investigate the effects of micro-finance institution on development of micro and small enterprise in Narok Town. The methods used include qualitative and quantitative approaches to collect and analyze data. The research study was specifically based on the following objectives; to analyze the effects of increased capital investiments on development of micro and small enterprises in Narok Town to establish improved saving capacity on how it affects development of micro and small enterprises in Narok Town and to establish the constraints to SMEs access to microfinance services in Narok Town. The accessible population was 200 employees of MFIs and 300 business operators in Narok Town from which a sample of 10% (50respondents) of the total population was obtained for the study. The researcher used simple random sampling to select the sample that represents the whole population. Questionnaires and interview schedules were used during data collection from respondents. Data collected was analyzed both quantitatively and qualitatively. After data collection, editing was done, then coding to facilitate data entry into the computer system to facilitate analysis. Excel spread sheet was used to compute the frequencies and percentages. This enables the generalization of the results. Results were presented using percentages frequencies tables and charts. This study is beneficial to the development of socio economic activities in developing towns like Narok and its contribution to the development of micro and small enterprises. The study is also essential to identify the role of MFIs products and services in small and micro enterprises sector. This will enhance to identify MFIs and their contribution to small and micro enterprise operators in accessing financial services in their business to boost their living standards in a sustainable manner. Also the study is a source of great experience and a contribution to the academic career of the researcher