dc.description.abstract | Microfinance has endeavored to develop sustainable enterprises and its innovations have
been replicated all over the world. In East Africa, MFls endeavored to uplift small businesses
throughprovision of affordable capital. The emergence of the micro-finance in Kenya has led
to promotion of SMEs by advancing small loans for business investments. There are existing
studies on MFI contribution to SMEs but no studies have been conducted to determine the
extent of MFI contribution in Ahero therefore it is unknown. Previous studies have
established SME growth but no single study has been carried out in Ahero to establish the
extent of SME growth. Therefore the extent of SME growth in Ahero is not clear. Prior
studiesshow little evidence to suggest any significant associations between MFI contribution
and SME growth but other studies show that MFls that are financially sustainable with high
outreachhave positive relationship with SME growth. No prior studies have been conducted
in Ahero to examine associations between MFI contribution and SME growth. The main
objectiveof this study was to investigate the associations between microfinance contribution
and SME growth in Ahero. Specific objectives were to: establish extent of MFI contribution
in Ahero; establish extent of SME growth in Ahero and examine associations between MFI
contributionand SME growth. The conceptual framework directly relates MFI contribution to
SMEgrowth. Survey research design was adopted. Study population consisted of 319 SMES
and a sample size of 167 SMES was drawn using proportionate stratified sampling with
100%response rate. Pretesting revealed the measure to be reliable at an alpha of 0.72 and had
a good face and content validity. Results for establishing extent of microfinance contribution
in Ahero show a mean of3.63 and standard deviation of 1.07 meaning that the extent ofMFI
contribution in Ahero is low. It is recommended that MFI contribution in Ahero should be
improved. To establish extent of SME growth in Ahero, results report a mean oD.79 and
standard deviation of 0.75 meaning that extent of SME growth in Ahero is high. It is
recommended that the trend of SME growth should be sustained in Ahero. To examine
associationbetween MFI contribution and SME growth in Ahero, results indicate a moderate
correlation at r=0.496(p=0.000) meaning that the association between MFI contribution and
SME growth is highly positively significant. It is recommended that MFI contribution
towards SME growth should be strengthened. This study will be of significance to
entrepreneurs for growth of their enterprises, to government for policy formulation and for
academicpurposes it will be of significance to researchers for further research in this subject
area and to students and lecturers for more information, | en_US |