| dc.description.abstract | Savings is a vital source of investment funds especially for developing economies like Kenya. Unfortunately, domestic savings in these countries have remained very low, thus posing a significant development challenge. Kenya has recorded low saving rates in the recent past, a situation that possess a big threat to its development agenda. Therefore, there is need to increase savings rate by all sectors in the economy. Since every country would like to have higher rate of savings, it is necessary to identify determinants of savings and in particular determinants of low savings. Small scale entrepreneurs constitute almost 60% of the informal sector which contributes about 70% of national savings. The purpose of the study was to investigate the effect of socio-economic factors on saving among small scale entrepreneurs in Kisii town. Specific objectives of the study were to determine the effect of socio-economic factors namely; age, household size, education level and income on savings among small scale entrepreneurs in Kisii town Kenya. The study used Permanent Income theory since it entails both the social and economic aspect of an individual. The study adopted correlational research design. The target population was 640 small scale entrepreneurs doing business in Kisii town out of which sample of 246 entrepreneurs was obtained from the sampling frame using a formula by Yamane; n= N/ 1+N (e)2where, n=sample size=population size and e=level of precision. This study, used primary data which was collected using structured questionnaires. Validity and reliability measures were tested using Pearson‟s correlation coefficient. Ordinary Least squares method was used to estimate the cross-sectional primary data whose results indicated that age was insignificant (β =-0.095;p =.260> 0.05), but household size was significant (standardized beta = .264, p = .000), education level was significant(standardized beta = .421, p = .000) and income was also significant standardized beta = .414, p = .000).The results indicate that when an entrepreneur grows older by one year, savings increase by0.095units and with an addition of one member to the household, saving will increase by 0.264 units. When income increases by one shilling, savings will increase by 0.414 units and with an addition of one year of learning, saving will increase by0.421units. It is therefore recommended that small scale business entrepreneurs should increase their education level in entrepreneurship, learn on how they can increase their incomes and adopt family planning methods to reduce number of children who can consume part of the income that can be saved. | en_US |
