| dc.description.abstract | Most of the MSEs are stagnating, retrogressing to micro status or closing after few years of operation. Therefore the ability of MSEs to grow depends highly on their potential to invest in restructuring and innovation; all these investments require capital and access to finance. Various studies have been done in Kenya on MSEs and how they are influenced by microfinance services; the small businesses are experiencing an average decline of 4% points while medium enterprises are experiencing an average turnover increase of 7% points. Despite the fact that MSEs have maintained the increase in use of Chama and Mobile Money as well as sharp decline in Banks as a source of finance. The purpose of the study was to assess the influence business networks on the relationship between microfinance services and performance of micro and small enterprises in Kisumu county Kenya. The specific objectives for this study was to find out the influence of microfinance saving services on the performance of MSEs in Kisumu county Kenya; determine the influence of microfinance credit service on the performance of MSEs in Kisumu county Kenya; determine the influence of microfinance training services on the Performance of MSEs in Kisumu county Kenya; determine the influence of business network on the performance of micro and small enterprises in Kisumu county Kenya, and to assess the moderating influence business networks on the relationship between microfinance services and performance of micro and small enterprises in Kisumu county Kenya. Government and other policy making bodies may use the study findings in formulating policies and inform the general public on the available of microfinance products and how the products compare to other products offered in other countries. The findings of this study will provide a useful source of reference for other researchers and offer useful and lacking literature on the influence of MFI’s on Kenyan MSE’s in the process fill an existing literature gap. This study adopted a descriptive survey research design. The study was guided Grameen model, microfinance credit theory and joint liability theory. The study targeted 171 MSEs operating at Kisumu County. Results of the reliability test showed that all the variables had reliability alpha greater than 0.70 and therefore all were found to be reliable. The items included in the variables were consistent. Study sample size of 120 MSEs was used. Both primary and secondary data were used. Data analysis was done using descriptive statistics and inferential statistics. The findings revealed that regressors (saving services, credit facilities ,training services and MSE’s networks) account for 83.4% of the variation in performance of MSE’s in Kisumu bus park enterprises while 16.6% of the variation remain unexplained(R=0.913; R= 0.834; F=622.286; p < 0.05). In the regression analysis when MSE’s Networks was not factoredthe regressors (saving services, credit facilities, training services) indicate a strongcorrelation of 0.8052 is 0.648 (the variation of dependent variable is accountedfor up to 64.8%); its F value is highest at 62.497, p<0.05 indicating when Businessnetworks moderate microfinance services and MSE’s performance the results are betterand statistically significant. Based on the findings the study concludes that icrofinanceservices positively influence performance of MSEs and the performance is better whenthe Business Networks of traders is involves as it has a statistically significant influenceon the performance of MSE’s operating at Kisumu County.a2 and its R | en_US |
