Abstract:
Access to business finance is the backbone of small and medium enterprises’ success.
Women have been involved in economic development in both developed and
developing countries because of engaging in business activities that create
employment and enhance livelihoods. Women in urban and rural obtain credit
services through group formation rather than individual because of the challenges
they face, such as lack of collateral. However, attaining financial inclusion through
group lending has seen many women left out in this process due to the lending models
and approaches utilised by these institutions. Previous studies have demonstrated that
women may access financial credit from micro-finance institutions through a
corresponding growth in women’s enterprises remains unknown. This study,
therefore, sought to establish the relationship between group lending mechanisms and
the growth of women enterprises funded by Kenya Women Finance Trust in Kericho
County. Specifically, the study assessed the relationship between group
characteristics and the growth of women’s enterprises funded by Kenya women’s
finance trust. The study adopted a correlation research design with a target population
is 636 members from 70 women enterprises in Kericho County. A sample of 245
women was selected using a stratified sampling technique. A questionnaire was used
to collect primary data. Validity was determined through piloting, where the
researcher compared the actual outcome against predicted responses. Reliability was
determined using Cronbach’s alpha to examine the reliability, where a coefficient
value of 0.895 was found and thus deemed reliable. Collected data was coded into a
statistical package for social statistics version 23 and analysed through descriptive
statistics and inferential statistical analysis. Data were presented as frequency tables,
pie charts, and graphs. The study established that group characteristics had a
significant effect on the financial growth of women enterprises funded by Kenya
Women Finance Trust in Kericho County. The study concluded that group
mechanisms through group characteristics had a significant effect on the growth of
women. Therefore, the study recommended that the government should increase theamount of grants and loans offered to various business groups to improve access to
credit to the group as well as encourage group loans in Micro-Finances Institutions.
