Financial Services Access and Growth of Small and Medium Enterprises in Mombasa City, Kenya


Authors : Cheror Cheruiyot Haron; Dr. Ambrose Jagongo

Volume/Issue : Volume 8 - 2023, Issue 5 - May

Google Scholar : https://bit.ly/3TmGbDi

Scribd : https://t.ly/9lHA7

DOI : https://doi.org/10.5281/zenodo.7992709

Small scale and medium businesses (SMEs) contribute immensely towards the gross domestic product (GDP) of any nation. They account for a large percentage of the jobs in many countries. In consideration of these, the researchers sought to find out if a change in financial services access brings out a shift in growth of SMEs in Mombasa city, Kenya. The study focused on businesses in existence for five years after inception. Primary data was obtained, from 345 enterprises through a purposive random sample from licensed SMEs in the financial year 2020/2021, in Mombasa County. Except for banc assurance services the study showed a positive correlation between lending services, business training, bancassurance and digital banking with growth of small and medium enterprises. However, it found out a negative association between financial saving and the dependent variable. In consideration of these, the study recommends financial institutions to facilitate good working relationship between their credit departments with SMEs. This, in turn will boost uptake of credit services for realization of growth among small and medium enterprises. Insurance institutions to coordinate their partnership with banks to be able to accelerate uptake of bancassurance services. Governments to establish incentives on ICT firms that innovate products targeting financial services access and SMEs operations integrations. Furthermore, the county governments to fund trainings conducted by financial institutions to encourage them conduct frequent seminars and workshops among the SMEs owners and managers. This willboost knowledge and skill base, that ultimatelyassist businesses owners run their SMEs efficiently and effectively.

Keywords : Bancassurance, business training, digital banking, financial saving, financial services access, growth of small and medium enterprises, lending services.

CALL FOR PAPERS


Paper Submission Last Date
31 - March - 2024

Paper Review Notification
In 1-2 Days

Paper Publishing
In 2-3 Days

Video Explanation for Published paper

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe