Microfinance Credit-Assisted Microenterprises: Entrepreneurs’ and Businesses’ Characteristics and Their Implication on the Development Needs of Microenterprise-Sector in Kakamega County, Kenya

Abstract

In developing countries, Kenya included, the microenterprise (ME) sector is key in their development process. In Kakamega County, the sector continues to register remarkable growth than other sectors, employing 30% of the labour force and contributing significantly to households’ incomes and livelihoods. The sector is characterized by variations in entrepreneurs’ and MEs’ characteristics, making any stakeholders’ intervention strategies in its development difficult without appropriate data. However, it is not clear the extent to which entrepreneurs’ and MEs’ characteristics vary, which the study sought to investigate. The study established that significant differences exist in entrepreneurs’ and MEs’ characteristics. To improve the sector, the study recommends policies that will: promote education and training of entrepreneurs in critical skills; encourage entrepreneurs to diversify their businesses/products and income sources in order to increase their incomes; provide credit and improve prices and markets for MEs products and services, among others.

Keywords:Microenterprises, Entrepreneurs, Characteristics, Credit demand, Credit Utilization Levels and Business Training Needs

DOI: 10.7176/JAAS/82-04

Publication date:July 31^st 2023