• Login
    View Item 
    •   Repository Home
    • Research Publications
    • School of Business
    • Department of Business and Entrepreneurship
    • View Item
    •   Repository Home
    • Research Publications
    • School of Business
    • Department of Business and Entrepreneurship
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Effect of Collateral Requirement on Financial Performance of Agribusiness Small and Micro Enterprises in Nyeri Central Sub County Kenya

    Thumbnail
    View/Open
    Full text (902.7Kb)
    Date
    2019
    Author
    Kiai, Richard M.
    Kiragu, David
    Githinji, Caroline Wanja
    Metadata
    Show full item record
    Abstract
    Access to finance is critical to growth as well as development of small and micro enterprises (SMEs) .Most of the SMEs rely on commercial banks for financing of their enterprises. At times collateral requirement could deter some entrepreneurs from acquiring finances which could interrupt business growth as well as development. This study sought to investigate the effect of collateral requirement on financial performance of agribusiness small and micro enterprises in Nyeri Central Sub County. The study was guided by theory of financial intermediation theory. The target population of this study was 950 licensed Agribusiness SMEs. A sample size of 274 licensed SMEs operating in the Nyeri Central Sub County was estimated by the use of the Krejcie and Morgan's criterion. A Cronbach alpha coefficient of 0.7 was used to evaluate the reliability of the semi-structured questionnaire. A response rate of 86.5% was achieved. Inferential statistics was carried out to ascertain the relationship between collateral requirement and the financial performance of agribusiness SMEs in Nyeri Central Sub County. Regression assumptions of independence, linearity and normality were done. Results were interpreted using 5% level of significance. Bivariate regression analysis results indicated that collateral requirement had a negative and statistically insignificant effect on financial performance of Agribusiness SMEs. The study concluded that the collateral requirement by commercial banks affects the SMEs financial performance. The study recommends that Agribusiness SMEs should invest in capital assets which will assist them as collateral in time of accessing credit from commercial banks in order to enhance an sustain their financial performance. Keywords: Collateral Requirements, Financial Performance, Agribusiness Small
    URI
    https://karuspace.karu.ac.ke/handle/20.500.12092/2211
    Collections
    • Department of Business and Entrepreneurship [92]

    Karatina University copyright © 2017-2019  | Powered by DSpace
    Contact Us | Send Feedback | OAI-PMH Compliant
    Theme by Systems Librarian
      

     

    Browse

    All of RepositoryCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    LoginRegister

    Statistics

    View Usage Statistics

    Karatina University copyright © 2017-2019  | Powered by DSpace
    Contact Us | Send Feedback | OAI-PMH Compliant
    Theme by Systems Librarian