Financial Accessibility Challenges and Sustainability of Women-Owned Enterprises in Kisii Township, Kenya

Abstract

The study examines the challenges of financial accessibility and its impact on the sustainability of women-owned enterprises in Kisii Township, Kenya. Despite the crucial role of women entrepreneurs in the economy, they encounter significant obstacles in accessing finance, which hampers the growth and long-term viability of their businesses. This study adopted a positivist approach and a descriptive research design, focusing on 1,134 legally registered female entrepreneurs in Kisii township. A sample of 114 female entrepreneurs was selected using multistage sampling techniques. Primary data were collected using questionnaires with closed-ended questions, and the data were analyzed using regression analysis. The findings identified the main barriers to accessing finance as lack of collateral, domestic responsibilities, the age of the enterprise, lower risk propensity, women's risk-averse nature, individual owner characteristics, concentration in low-value sectors, and lower growth prospects. Additionally, the study found that women entrepreneurs seek advice on attracting new customers, supplier reputation, access to growth financing, and establishing appropriate business structures to address undercapitalization challenges. The regression analysis showed a strong positive correlation between financial accessibility and the sustainability of women-owned enterprises. The study concludes that addressing gender-related obstacles and barriers to accessing finance is essential for the growth and expansion of female-led enterprises. Recommendations include encouraging adequate capitalization, breaking into high-value markets, conducting surveys to assess women's financial needs, and promoting gender sensitization in financial institutions. Governments, social partners, and civil society organizations should coordinate their efforts to enhance the business environment for female entrepreneurs.