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This study has examined the impact of microfinance services on the economic empowerment of women entrepreneurs who have received Micro finance services from KWFT for Micro and Small business operations in Kibera. Many women owning MSEs have received credit from various MFIs to start their businesses but the empirical impact of the MFI services on the economic empowerment remains unavailable.
The overall objective of this study was to investigate the impact of micro finance on economic empowerment of women entrepreneurs in Kibera, Kenya. The specific objectives of the study were: to determine the effect of savings services on economic empowerment of women entrepreneurs in Kibera; to establish the effect of microfinance training services on economic empowerment of women entrepreneurs in Kibera; and to determine the effect of group work requirements on economic empowerment of women entrepreneurs in Kibera.
With these objectives, we sought to answer the following questions: What is the impact of microfinance credit services on economic empowerment of women entrepreneurs in Kibera? What is the impact of savings services on economic empowerment of women entrepreneurs in Kibera? What is the impact of microfinance training services on economic empowerment of women entrepreneurs in Kibera? What is the impact of group work on economic empowerment of women entrepreneurs in Kibera?
Questionnaire was used to collect primary data. Data analysis was done by use of Pearson’s coefficient of correlation and Chi-square test of independence. The population was identified and a sample of 150 was decided of which 94 women responded and their responses analyzed. This analysis included demographic information and factors influencing empowerment.
With the responses in the questionnaire, access to microfinance loans, savings, business group formation and training (independent variables) were found to have an impact on empowerment indicators i.e feeling financially empowered, growth in assets, growth in staff, contributed more in the household and the general family welfare improving. Positive correlation was found to exist and relationships were found using Chi-Square analysis. It was therefore concluded that Microfinance services including savings services, credit services, training, group formation and management should be provided to women entrepreneurs to enhance their empowerment.
It was therefore recommended that funds accessibility by women entrepreneurs be enhanced through adequate information, counseling, easy loaning processes and accommodative credit policy. It was also recommended that women entrepreneurs be encouraged to mobilize more savings for sustainability and their business growth and the government should come up with relevant entrepreneurship policy to support women entrepreneurs, training in business management in general and financial records management in specific, and to help empower the women entrepreneurs through exposure trips, seminars and workshops be arranged frequently by MFIs. |
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