Business-financing options’ effects on micro-enterprise performance in the tropics: The case of Kisumu County, Kenya

Onyango, Rael A., Eijdenberg, Emiel L., Masurel, Enno, and Obange, Nelson (2022) Business-financing options’ effects on micro-enterprise performance in the tropics: The case of Kisumu County, Kenya. In: Wood, Jacob, Thirumaran, K., and Wood, Jacob, (eds.) Business, Industry, and Trade in the Tropics. Routledge, Abingdon, Oxon, UK, pp. 1-19.

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Abstract

Micro-enterprises play an important role in one of the world’s most socioeconomically challenged regions: the tropics. Although various business-financing options for micro-enterprises exist, little is known about whether these options affect such enterprises’ performance. This chapter aims to examine various business-financing options’ effects on micro-enterprises’ performance in Kisumu County, Kenya, i.e., this study’s tropical context. Based on a survey of 326 micro-enterprises, the data analyses suggest that limited evidence exists that business-financing options affect micro-enterprises’ performance. With some reservations, it should be noted that a positive relationship exists between personal financing and a firm’s sales growth. The same goes for personal financing of micro-enterprises and the increased amount that the micro-entrepreneur’s household spends on housing. Only with some reservations can it be concluded that a positive relationship exists between the two, respectively. In both situations, personal financing is compared with internal and external financing, respectively. Explanations for this limited evidence concerning various financing options’ effects on micro-enterprise performance are discussed, and future research directions are proposed.

Item ID: 77343
Item Type: Book Chapter (Research - B1)
ISBN: 9781003153580
Copyright Information: © 2022 selection and editorial matter, Jacob Wood, Taha Chaiechi and K Thirumaran; individual chapters, the contributors
Date Deposited: 30 Jan 2023 23:35
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350704 Entrepreneurship @ 100%
SEO Codes: 11 COMMERCIAL SERVICES AND TOURISM > 1101 Environmentally sustainable commercial services and tourism > 110199 Environmentally sustainable commercial services and tourism not elsewhere classified @ 100%
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