The Financing Perspective of Small- and Medium-Sized Manufacturing Enterprises in Kenya

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Periodical article

Title:	The Financing Perspective of Small- and Medium-Sized Manufacturing Enterprises in Kenya
Author:	Migiro, Stephen O.
Year:	2005
Periodical:	Africanus
Volume:	35
Issue:	2
Pages:	3-17
Language:	English
Geographic term:	Kenya
Subjects:	small enterprises business financing credit Development and Technology Economics and Trade
Abstract:	The growth and competitiveness of small and medium-sized enterprises (SMEs) is constrained by the high cost of credit resulting in a lack of access to financing. This condition is highlighted in the theoretical and conceptual framework for SME finance. This article presents existing empirical evidence on SME finance and the current situation in the use of alternative modes in their development and growth using literature review, desk research, content analysis and survey research methodology to identify financing alternatives, and to suggest possible ways of financing manufacturing SMEs in Kenya. The primary objective is to establish the extent to which small and medium enterprises experience selected problems in gaining access to external finance. The secondary objective is to investigate whether relationships exist between the problems identified and small business access to external finance. The result obtained from the empirical survey reveals that SMEs face several constraints on access to external finance. One of the most severe is that most of the SME operators are ignorant of existing financing sources. Bibliogr., sum. [Journal abstract]