ABSTRACT

The study examined women entrepreneurs in small-scale enterprises and their relationship with microfinance institutions in Arid and Semi-arid areas (ASALs) of Kenya. The study was carried out in Central division, Wajir district in North Eastern Province. The objectives of the study were, to find out the roles of micro finance institutions in empowering women enterprises, to examine the constraints facing women enterprises and to find out the ways forward to overcome these constraints. The study utilized sample survey design. The respondents for the study were drawn through stratified sampling, simple random sampling and purposive sampling. The data collected were analyzed using simple frequency distribution tables, percentages, graphs and pie chmis. Descriptive analysis was also given to explain the information. The findings of the study included; the amount of loan given to women by micro-finance institutions were generally small and therefore could not help them start viable business enterprises.Most of the women entrepreneurs in Wajir central division were illiterates. 33.7% left school at primary level. This inturn affected their record keeping skills which led to the mismanagements of the business enterprises. In respect to the above findings these were some of the conclusions drawn, few women got loans ranging from Ksh 30,000 and above while large number of the women (50%) got less than ksh 10,000 and socially women entrepreneurs were considered inferior to their male counter pmis and hence segregated in terms entrepreneurial development. The following were some of the recommendations of the study; the micro-finance institutions should increase the amount of loan offered to women entrepreneurs in order for women to establish a viable business enterprise. The approval of the loan should not take long time as this would delay the activities of the business enterprises. The government actors should provide and maintain the basic infrastructure at reasonable cost to consumers.

TABLE OF CONTENTS PAGES

DecIaration ---------------------------------------------------------------------------------i

AcknowIedgment ------------------------------------------------------------------------ iii

Dedication ---------------------------··----------------------------------------------------- i '

Table of contents ------------------------------------------------------------------------- '

List of tab I e s ------------------------------------------------------------------------------ ' i

List of figures ----------------------------------------------------------------------------- 'Iii

List of abbreviation ----------------------------------------------------------------------'Iii

Abstract ------------------------------------------------------------------------------------ ix

CHAPTER ONE

1.0 Introduction-------------------------------------------------------------------------------1

1.1 Background information ---------------------------------------------------------------1

1.2 Statement of the Problem --------------------------------------------------------------4

1.3 Objectives of the study -----------------------------------------------------------------4

1.4 Research questions ----------------------------------------------------------------------4

1.5 Justification of the study ---------------------------------------------------------------5

1.6 Scope of the study -----------------------------------------------------------------------6

I. 7 limitation of the study--------------------------------------------------------------------6

I. 8 Definition of terms and variables ------------------------------------------------------7

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction---------------------------------------------------------------------------------9

2.1 Roles of microfinance institutions in empowering women enterprise--------------9

2.2 Constraints facing women entrepreneurs-----------------------------------------------11

2.3 ways forward to overcome the challenges faced by women entrepreneurs--------17

CHAPTER THREE: METHODOLOGY

3.0 Introduction-----------------------------------------------------------------------------------2 0

3.1 Research design------------------------------------------------------------------------------2 0

3.2 Population of study--------------------------------------------------------------------------20

3.3 SampIing Procedure--------------------------------------------------------------------------2 0

3.4 Methods of data collection -----------------------------------------------------------------22

3.5 Methods of data analysis --------.------------------------------------------------------------23

CHAPTER FOUR: PRESENTATION, INTERPRETATION AND ANALYSIS OF

FINDINGS

4.0 Introduction ----------------------------------------------------------------------------- 2 4

4.1 Role of micro finance institutions --------------------------------------------------27

4.2 Constraints faced by women entrepreneurs--------------------------------------- 27

4.3 Way forward to overcome these constraints--------------------------------------- 43

CHAPTER FIVE: DISCUSSION, CONCLUSION AND RECOMMENDATION

5 . 0 Discussion-------------------------------------------------------------------------------- 44

5.2 Conclusion ------------------------------------------------------------------------------- 46

5.3 Recommendations ---------------------------------------------------------------------- 4 7

BibIiography ----------- ·-- ----------------------------- ---------------------------------------4 8