assets owned by women entrepreneurs was higher for continuing businesses 75

Assets owned by women entrepreneurs was higher for

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assets owned by women entrepreneurs was higher for continuing businesses (75%) than for starting businesses (25%) Table 4.28: Ownership of Collateral Ownership of collateral By women entrepreneurs 15% By Male family members 85% 58 Figure 4.3: Deterrents for Taking Credit Offers 85% % 10 3% 2% 0 % % 10 % 20 30 % 40 % 50 % 60 % 70 % 80 % 90% High interest rates Do not need credit Not ready to take Other reasons
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CHAPTER FIVE SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 5.0 INTRODUCTION The chapter describes the summary of the findings, recommendations, and suggestions for further research. 5.1 SUMMARY OF FINDINGS From the findings it was evident that trained women entrepreneurs had better chances of accessing business credit from MFIs. From the analysis of responses from Managers of MFIs, the reasons that were stated for this is that trained women were better able to keep financial records concerning their businesses develop business plans and project proposal than untrained women. 59
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Approximately 70% of trained women entrepreneurs who applied for credit were able to access credit while 50% of untrained women entrepreneurs accessed credit from MFIs. These findings concur with the findings of Kimuyu (1999) in his research on Enterprise Structure and performance in Kenya. He finds that there is a possible positive correlation between an entrepreneur‘s education level and ability to pursue profitable entrepreneurship, understand and familiarize with the workings of credit/loan arrangements and finally successfully manage loans. In emphasizing this point, International Labour Organization (2006) states that lower education levels puts women entrepreneurs in Kenya at a disadvantage compared to men. While gender gap in primary education in Kenya has decreased in recent years, the gap remains high at secondary and tertiary education levels. Lower education does not emphasize entrepreneurship skills. It decreases the chances that women will have the knowledge needed to excel in business, and thereby contribute to the country‘s overall economic growth. Findings indicate that income levels affect the level of credit that can be advanced to women entrepreneurs. This can be attributed to the measurement of ability to pay using level of income by credit raters, MFIs and other issuers of credit. The findings of Namusonge (2006) address the effect of low income on access to credit by women owned enterprises in Kenya. It states that access to credit has eventually become a detrimental factor to advancing their small scale business enterprises as most businesses owned by the rural poor women are poorly managed, have low income and are mostly deemed not credit worthy by financial institutions. It continues to note that these women who own small business enterprises also are most reluctant to take credit as it is an expensive option to improving their business. They fear taking the risk associated with credits.
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