17 431 distribution of respondents in respects to the cost of acquiring credit

17 431 distribution of respondents in respects to the

This preview shows page 27 - 30 out of 41 pages.

17
Image of page 27
4.3.1; distribution of respondents in respects to the cost of acquiring credit from MFIs Figure 4.3.1 below indicates the respondents’ opinion about their accessibility to MFIs loans and the question; is it expensive to acquire the credit? Was asked. Table 3.1 6 distribution of respondents in respect to cost Frequency percentage Strongly agree 27 46 Agree 20 31 Neutral 7 11 Disagree 5 8 Strongly disagree 6 9 Total 65 100 Source: Research Findings From the findings above 56.7 percent of the respondents acknowledge that acquiring funding from MFIs is expensive while only 20 percent alludes that acquiring funding from MFIs is not expensive. 4.3.1 SMEs Accessibility to MFIs Loans In Figure 1, to determine SMEs accessibility to MFIs loans, and the result depicts that 30 of the respondents which represents 46% claim they have an access to MFIs, and 35 respondents which represents 54%, a minute and insignificant number of the respondents disclosed that they have no access to MFIs loans. What this implies is that the National government of Kenya’s efforts through its central banks (CBK) in 2015 to issue a microfinance policy i.e. the Regulatory and supervisory Framework, whereby licenses of operation were issued out to over eight hundred microfinance banks was a right decision. Moreover, most of the credit union banks which used to operate only within their local environment were required to raise their capital base and operate as microfinance within their states and interstate, thereby given them the opportunity to reach 18
Image of page 28
more SMEs. Also, many SMEs were able to approach MFIs for finance because MFIs do not request collateral before they issue out loans to the SMEs.Number of Respondents in Percentage 2 Percentage Level of SMEs Goals Achievement Using MFIs Loans To measure the percentage level of SMEs goals achievement using MFIs loans, Figure 2 presents the assertion of the 65 respondents which 11% of them claim that they record 80-100 percent goal achievement using loans granted them by MFIs. 54% which represents more than half of the respondents believe they achieve more than half of their goals, which are 50-69 percent using MFIs loans. 35% of the respondents believe they only met 10-49 percent of their targeted goals. This implies that some SMEs could not effectively meet their goals virtually because the loans given to them by MFIs were not sufficient enough to achieve the targeted results. 4.4 MFIs and competition For SMEs to survive in Kenya there is a need to achieve a substantial market share. Moreover, for them to gain a portion of the market, competitions have to take place between them and other companies. Figures 4.4 below indicate respondents’ opinion about MFIs loans impact on SMEs ability to compete and secure market share Contributed high contributed low No contribution Number of Respondents 24 34 7 Percentage 37% 52% 11% Table 3.1 7 mfis contributions towards smes capital base In Figure 4, which indicate MFIs contributions towards SMEs increase in capital, what was the aggregate capital for your business? All the respondents agree that MFIs loans contribute to the increase in capital for their business.
Image of page 29
Image of page 30

You've reached the end of your free preview.

Want to read all 41 pages?

  • Fall '15
  • Dr.Peach
  • MFI

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture