Bank deposits have developed as a disciplining

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bank deposits have developed as a disciplining instrument for bankers. The sight deposits developed in order to limit the predilection of banks towards risk, thus the changes in the offer and demand of this type of bonds will reflect into the financing costs and will oblige banks to adopt a prudential behavior, ensuring that they have enough liquidities and capital resources. 2.3. criticisms of the theories. assume that delegation cost remain constant overtime. They They assume that transactions costs are constant. Assume that all assets of the banks are liquid. 2.4. research objectives. To determine the role of agency banking loans on the number of businesses established by entrepreneurs. To investigate the levels of savings of entrepreneurs from businesses financed by commercial banks agents in the region. To determine the impact of agency banking on the incomes earned by entrepreneurs by commercial banks agents 2.5. conceptual framework. The growth of enterprises in marsabit is determine some factor called independent variables shown below and the growth of the enterprises is the dependent variable influenced them.
THERETICAL FRAMEWORK GROWTH OF SMALL AND MEDIUM SIZE ENTREPRISES DEPENDENT VARIABL Reduced interest interest rate . INDEPENDENT VARIABLES. 3.0. CHAPTER THREE. 3.1. Introduction. This chapter presents methodological approaches that wil be used in data collection and analysis. Specifically, it presents the research design, sources of data, study population/target population, study area, methods, procedures and processes used in data collection and analysis, sampling design, pilot testing and validity of data. 3.2. Study Area. The study will be carried out in the newly created marsabit county, eastern province, Republic of Kenya. Marsabit county is exactly located in northern part of Kenya though it is categorized as among the counties in the Eastern province. Marsabit County is approximately 384 km from Isiolo Township which is the nearest town. The main livelihood in the area of study is pastoralist. It is because of this that the culture of entrepreneurship has not been fully embraced. 3.3. Research Design. The study will adopt a survey design. The purpose of the study will be to investigate the contribution of agency banking to the developments of small and medium size enterprises in Kenya with specific reference to Marsabit County. The survey design is concerned with gathering facts and obtaining pertinent precise information to the extent and impact of emergence of agency banking to the growth of small and medium size enterprises in the county of marsabit, makes recommendations from the facts discovered for action. According to Lokesh(1984), survey research studies are designed to obtain pertinent and precise information concerning the current state of phenomenon and whenever possible valid general conclusion from facts discovered. Therefore descriptive survey was considered to established the nature of existing conditions.

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