Influence ofFinancial Access on Performance ofSMEs ofFish Trading along Lake Victoria Region Kenya

Abstract

Purpose: Examine the effect of access to finance on performance of small and medium enterprise of fish trading along Lake Victoria region Kenya.

Methodology/Approach: The study was anchored on positivism philosophy while credit rationing theory was used as a guide to the study. Mixed design was used. Target population of 4,500 respondents with a sample size 173 of traders was selected using the Yamane formula. Questionnaire as data collection instrument. The study data were analyzed using descriptive and inferential statistics which include mean and mode. Descriptive statistics was computed to summarize data before regression analyses. This was presented using tables.

Findings: Simple linear regression results showed financial access had a significant effect on performance of SMEs of fish trading along Lake Victoria region (Coefficient of correlation 0.403, p=0.000<.005, t=5.499). The study rejected the null hypothesis.

Implications: The study recommends that business owners should seek funding inclusion to enable performance.