RELATIONSHIP BETWEEN TABLE BANKING AND THE GROWTH OF WOMEN OWNED MICRO AND SMALL ENTERPRISES IN UHURU MARKET, NAIROBI COUNTY
Josephine Mwikali Ngumbau - Master of Business Administration, Kenya Methodist University, Kenya
Dorothy Kirimi - Lecturer, Kenya Methodist University, Kenya
Dr. Thomas A. Senaji - Lecturer, Kenya Methodist University, Kenya
ABSTRACT
Micro and small enterprises contributes a lot to the growth of any country’s economy in the world and have been widely accepted as an engine of economic growth and innovation. Most of these enterprises are owned by women who are the largest poor in society and face difficulties in accessing credit from financial institutions to start or expand their small enterprises due to conditions that they cannot meet. The research study therefore assessed the relationship between table banking and the growth of women owned micro and small enterprises in Uhuru market, focusing on access to credit, professional support, networks and access to information which are made possible through table banking framework. A descriptive approach was used to collect data and the target population comprised of selected women owned micro and small enterprises. The sample was drawn from a population of 400 MSEs. Out of this, 300 owners practice table banking. A simple random sampling was used to select 30% from the 300, which formed a sample size of 90 respondents who participated. Data was analyzed using SPSS and the findings from the study brought the results of the variables that the researcher hypotheses as an existing gap that hinder the growth of women owned MSEs in Uhuru Market, Nairobi County. The study revealed that women who own these MSEs obtained their opening capital from personal savings, friends and relatives. They regularly receive funds from their Group (Chama) through table banking framework. Education and management training was found to be a key factor and technology, financial and management skill are key areas which the women need to be well conversant in order to excel in their businesses. The high cost of developing networks, new business contacts and relationships by women who own MSEs has been a big barrier to the performance of their enterprises and access to business information is important for improved performance, survival and growth. Table banking had positive significant influence on the growth of women owned MSEs. The order of importance from the most to the list in influencing growth was access to information, access to credit, professional support and lastly networking which had a positive but insignificant influence on growth. The study conclude that lack of access to local credit, gaps in the provision of business information on finances, market linkages and other support services constrain the growth of women owned MSEs. Women entrepreneurs should also come together and form business social networks for the purposes of pooling their financial resources together to allow easy access to credit from financial institutions in order to improve the growth of their MSEs. The concept of table banking should be embraced by the government with policies formulated and implemented that address the needs of women who own MSES.
