Abstract:
Women entrepreneurship plays an important role in the economic development of a
Country. Women entrepreneurs enhance livelihoods within the family and leads to
wealth creation at the national level. Women’s involvement in entrepreneurship is
applauded as a necessary precursor to economic growth of nations. Women in
developed countries have access to capital and the acceptance of women as business
owners has improved. However, women in developing countries do face obstacles
such as lack of access to finance. This study sought to establish factors affecting
access of women enterprise funds by women income generating projects in Nakuru
Town West Sub-County, Kenya. The study focused on the effect of women credit
rating, information asymmetry, spouse and cost of finance on access to women
enterprise funds in Nakuru Town West Sub-County, Kenya. The study was guided by
financial capital theory, joint liability theory, adverse selection model and moral
hazard model. A descriptive survey research design was employed. The study targeted
the chairpersons of women groups operating income generating projects in Nakuru
Town West Sub-County, Kenya. A sample of 79 respondents was selected from a
population of 376 using simple random sampling technique. The study adopted the
use of a questionnaire as the primary data collection instrument that was constructed
on a five point Likert Scale. The data collected was analyzed with the aid of Statistical
Package for Social Sciences (SPSS) version 24. The analysis was in form of both
descriptive and inferential statistics. Results were presented in tables and discussions
there of. The study established that credit rating had a significant effect on access to
women enterprise fund and could account up to 22.5% of the total variance in access
to women enterprise fund. Information asymmetry accounted for 24.8% of the total
variance in access to women enterprise fund and also had a significant effect on
access to women enterprise funds. Family influence was found to have a significant
effect on access to women enterprise and accounted for 20.4% of the total variation in
access to women enterprise fund. Cost of finance was found not to have a significant
effect on access to women enterprise fund. The study concluded that credit rating,
information asymmetry and family influence have a significant effect on access to
women enterprise funds in Nakuru West Sub-county. The study recommended that
group leaders should encourage group members to enhance credit history to raise their
ability to access financing. Further, there should be proper information sharing
between the banking and funding institutions and women groups of initiatives like
women enterprise funds in Nakuru West Sub-county. In addition, the study
recommended that the group members should engage their family members in the
activities of the group so as to enhance their collaboration in the group activities. This
will increase the support of their families and enhance their ability to access women
enterprise funds.
