Training and Credit Intervention on Performance of Women Operated Enterprises in Nakuru, Kenya

Abstract

In the traditional society, women were confined to the four walls of houses, performing household activities. However, in the modern society, they have come out of the four walls to participate in business activities including obtaining loans from financial institutions and investing in business. The purpose of this study was to determine the effect of training and credit offered by Small and Micro Enterprise Program SMEP on performance of enterprises owned and operated by women entrepreneurs in Nakuru Municipality. Specifically, it aimed at determining whether credit and training in budgeting and bookkeeping, marketing techniques and risk management offered by SMEP have led to a significant influence on the performance of women-owned enterprises in Nakuru Municipality. The study used survey research design targeting 2064 women enterpreneurs who had received credit from SMEP between January 2008 and December 2012. A random sample of 336 was selected for the study. Data was analyzed using both descriptive and inferential statistics. Based on the Z-test analysis, findings revealed that all the variables in the study individually were statistically significant to the performance of the women owned businesses in Nakuru Municipality (z > 1.960; α<.05; df = 309; p = 0.000). It was established that the marketing techniques of the women entrepreneurs significantly improved after receiving training and credit. Findings also showed that credit and training had significantly reduced the underperfomance of the women owned businesses in the area and, therefore, it is recommended that training frequency need to be increased by SMEP, with more coverage in marketing techniques and risk management; and that credit should be packaged together with training.