Factors affecting loan repayment by women entrepreneurs: a case of kisii county, Kenya

Abstract

Women entrepreneurs play an important role in the economic development of the Country. The research focused on the Women Entrepreneurs who belong to groups seeking for financial access. According to Central Bank of Kenya report of 2010 the default rate experienced by financial institutions had continued increasing and stood at 8%. Thus the study main objective was to establish the factors affecting loan repayment by women entrepreneurs. The research model developed predicted that marketing knowledge, training, group membership and financial availability affected loan repayment. Stratified random sampling as a sampling method was used by the research after having established the sampling frame of women groups accessing funds from financial institutions in Kisii town, Kenya. The researcher made use of a structured questionnaire that was administered to the target respondents The study established that loan repayment by women entrepreneurs is affected to a high level through adherence of members to group by- laws and regulations. The study found that that carrying out the business for a long period enables them to be in a position to repay the loans acquired without any difficult. The study recommends that the microfinance institutions management should have an effective loan management plan