Credit Financing and the Performance of Micro and Small Enterprises

The book assesses the impact of credit financing on the performance of Micro and Small Enterprises (MSEs) in rural- urban set up of a developing economy. It notes that credit financing has a significant role on their performance, both in terms of growth, information seeking behavior and attainment of customer value and satisfaction as indicators of MSEs¿ performance. Further, it notes that although credit models that are operational in Kenya seem to be working with regard to low cost of sustainability among micro-financiers and high recovery rates from borrowers; they have failed to address critical issues that facilitate improved performance of MSEs. Issues including favorable repayment grace period and quick processing of loans in response to timings of entrepreneurs business opportunities need to be redressed. As for severe constraints among entrepreneurs, inadequate finances, dependence burden and taxation featured prominently. The book concludes that socio-economic factors like educational level and training had an impact on uptake of credit, performance of entrepreneurs and their businesses. Moreover, as more funds are made available for MSEs, there is need for reducing tax