Effect of Credit Awareness on the Performance of Micro and Small Enterprises in Isiolo County


  • Bornface Mwenda Kenya Methodist University
  • Susan Kambura Kenya Methodist University
  • Adel Kanyiri Kenya Methodist University


The limited access to informal and formal credit by entrepreneurs has been identified as a major constraint to growth of micro and small enterprises in Isiolo County. The County is also characterized by high level of unemployment, particularly among the youths, nomadic life and low educational levels and all these can be attributed to limited access to credit. The study sought to establish the influence of credit awareness on performance of micro and small enterprises in Isiolo North Sub-County. Descriptive survey research design was adopted. The unit of analysis was 120 micro and small enterprises within Isiolo Town. The unit of observation was owners or managers of the businesses. Data was collected through structured questionnaires. Data was analyzed using descriptive and inferential statistics. The findings revealed that credit awareness had a positive and significant effect on performance of micro and small enterprises. The study concluded credit awareness significantly contributed to the performance of micro and small enterprises. The study recommended the need for financial institutions to strengthen aspects related credit awareness. They should specifically enhance visit to business premises by credit officers, organize seminars and provide timely and accurate information about credit micro and small enterprises’ owners.

Keywords:  Credit awareness, Performance, Micro and Small Enterprises, Isiolo County

Author Biographies

Bornface Mwenda, Kenya Methodist University

Kenya Methodist University

Susan Kambura, Kenya Methodist University

Kenya Methodist University

Adel Kanyiri, Kenya Methodist University

Kenya Methodist University


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How to Cite

Mwenda, B., Kambura, S., & Kanyiri, A. (2021). Effect of Credit Awareness on the Performance of Micro and Small Enterprises in Isiolo County. Journal of Finance and Accounting, 5(1), 70–79. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-accounting/article/view/776