ENTREPRENURIAL FINANCE AND PERFORMANCE OF SMALL AND MEDIUM SIZED ENTERPRISES IN KIAMBU COUNTY, KENYA

Description

Small and Medium Enterprises (SMEs) have contributed greatly to the Kenyan economy. They account for over 90% of all businesses in the country and provide employment opportunities to the majority of the population. Access to finance is a critical determinant to the success and growth of small and medium enterprises. The objective of this study is to assess the effect of access to entrepreneurial finance on the growth of Small and Medium sized Enterprises in Kiambu, Kenya. The target population is the 889 registered Small and Medium sized Enterprises in Kiambu County. The theories looked at in this study are Compensatory Theory of Profits, Traditional Theory of Capital Structures, Pecking Order Theory and Liquidity Preference Theory. The research used the descriptive design and concentrated on registered SMEs in Kiambu County due to their concentration thus a good representation. The target population for this study constitutes of the 889 SMEs in Kiambu County as registered in the Kiambu Business Directory. Using the Yamane sample size formula, a sample size of 276 businesses were selected to represent the target population.