EFFECT OF MICRO-CREDIT ON GROWTH OF SMALL BUSINESS ENTERPRISES: A CASE OF M-SHWARI AT KIBUYE MARKET IN KISUMU COUNTY, KENYA

Abstract

Major focus of this study was to assess the effect of M-Shwari micro-credit on business growth among the Small Business Enterprises (SBEs) at Kibuye market in Kisumu town. Within this scope, the study focused on the M-Shwari customer knowledge, access to microcredit, repayment of microcredit, and micro-credit risks. This was significant in determining the net effect of mobile technology and forward innovations on small scale business. The target population constituted 332 SBE operators at the selected market. Nevertheless, from a sample of 77 participants who were selected by simple random sampling, 68 questionnaires were duly completed and returned, thus representing a response rate of 88%. The instruments for data collection were semi-structured questionnaire which were researcher-administered. Collected data were processed and analyzed using descriptive statistics. The findings were presented using frequency tables and graphs. It was further recommended that core strategic players in the mobile-credit such as phone-service provider, the lender and the regulator needed to up their efforts in enhancing publicity of the designed products so as to demystify any complexities met by consumers in accessing the services. Finally, the regulator needed to work ahead of technological innovations so as to proactively deal with regulatory hindrances that may distort the financial inclusion intents.