Influence of Business Risks on Credit Access by Small Business Producer Groups in Trans Nzoia County, Kenya

Abstract

This study general objective was to examine the influence of business risks in accessing of credit by small business producer group in Trans Nzoia County. The study specifically aimed at investigating the effect of business risk identification on access of credit by small business groups in Trans Zoia County, to investigate if business risk influences access of credit and to establish the effect of business risk monitoring on access of credit by small business groups in Trans Zoia County, Kenya The research used cross sectional design while data were collected through in-depth personal interviews administered through open-ended interview guides (Appendix I) to 54 chairpersons from 54 SBPGs and content analysis used to analyze data collected from the interviews. The study found that credit access is largely influenced by business risk and specifically the following risks; financial, strategy, operations, compliance and reputations. The study concludes that it is of general realization that SBPGs face business risk challenges in accessing the credit to develop their businesses. The research recommended the government, MFIs and social investors to come in to support the small businesses through trainings and capacity building.