EFFECT OF PROACTIVENESS ON THE GROWTH OF MICROFINANCE INSTITUTIONS IN MURANG’A COUNTY, KENYA
EFFECT OF PROACTIVENESS ON THE GROWTH OF MICROFINANCE INSTITUTIONS IN MURANG’A COUNTY, KENYA
Dr. Florence Waitherero Kariuki - School of Business and Economics, Murang’a University of Technology, Kenya
Dr. Ruth Wanjiku Muriithi - School of Business and Economics, Murang’a University of Technology, Kenya
ABSTRACT
Microfinance institutions (MFIs) play a crucial role in fostering financial inclusion and economic development, particularly in emerging economies like Kenya. This study investigates the impact of proactiveness on the growth of MFIs in Murang'a County, Kenya. Proactiveness, characterized by an organization's ability to anticipate and initiate strategic actions, has gained prominence as a key determinant of success in the dynamic financial services sector. Using a mixed-methods research approach, this study examines the extent to which proactiveness influences the growth of MFIs in Murang'a County. The research findings reveal a strong positive correlation between proactiveness and MFI growth. Institutions that proactively introduce new products, enhance service quality, and adapt to market changes experience higher levels of growth in terms of customer base, loan portfolio, and financial performance. Moreover, proactiveness contributes to improved competitiveness and sustainability, enabling MFIs to better serve their target clientele. The study also identifies specific proactive strategies and practices that are associated with MFI growth, shedding light on actionable insights for both practitioners and policymakers. These findings underscore the significance of proactiveness as a strategic tool for enhancing the growth and impact of microfinance institutions in Murang'a County and similar contexts.
