Credit Financing and the Performance of Micro and Small Enterprises

The book "Credit Financing and the Performance of Micro and Small Enterprises" examines the impact of credit financing on the performance of micro and small enterprises (MSEs) in a rural-urban context of a developing economy. It is noted that credit financing plays a crucial role in growth, information behavior, and achieving customer value and satisfaction, which serve as indicators of MSE performance. Despite the positive aspects of existing credit models in Kenya, such as low operating costs and high repayment rates, critical issues are identified that could enhance MSE performance. These include the need for favorable repayment periods and prompt processing of loan applications to meet the time demands of entrepreneurs. The book concludes by stating that socioeconomic factors such as education level and training influence the uptake of loans as well as the performance of entrepreneurs and their businesses.