Implication of Microenterprises’ and Entrepreneurs’ Characteristics on Microfinance Credit Demand in Kakamega County, Kenya

The microenterprise (ME) sector is key in Kenya’s development process. In Kakamega County, the employs 30% of labour force and continues to register remarkable growth than agricultural wage-employment sectors. sector, therefore, contributes significantly households’ incomes livelihoods. Despite this, exhibits varied entrepreneurs’ MEs characteristics. Moreover, faced with a myriad problems constraints that affect its development. For instance, inaccessibility credit from mainstream financial institutions has been one major sector. However, address microfinance (MFIs) have developed credit-friendly programmes, preferably for entrepreneurs self-help groups (SHGs). This notwithstanding, there still exist variations MFIs-credit demand utilization levels among entrepreneurs. It however, not clear what extent characteristics vary their role influencing which study sought investigate. Descriptive research design was used this study, sample 267 assisted drawn using stratified proportional random sampling techniques. A semi-structured questionnaire, observations informant interviews were collect data. Data analyzed using: descriptive statistics; chi-square, correlation regression analysis. found out significant differences (P<0.05)) MEs’ even though these factors (P<0.05) influence entrepreneurs, they only explain 24.9% To improve recommends policies will: promote education make less risk averse; encourage diversify sources income; aim business particular, prices markets products services. Keywords: Microenterprises, Entrepreneurs, Microfinance Institutions, Credit Demand Levels. DOI: 10.7176/JPID/62-04 Publication date: July 31 st 2023