Effect of Usage of Finance on Performance of Small and Medium Enterprises of Fish Trading Along Lake Victoria Region Kenya

Abstract

Purpose: The purpose of the study was to examine the effect of usage of finance on performance of small and medium enterprise of fish trading along Lake Victoria region Kenya. The study was anchored on positivism philosophy while credit rationing theory was used as a guide to the study.

Methodology/Approach: Mixed research design was adopted in the study. Target population of 4,500 respondents with a sample size 173 of traders was selected using the Yamane formula. Questionnaire and interview schedules were used 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 and describe the demographic characteristics of the respondents. Data was presented using tables.

Findings: Simple linear regression results showed that usage of finance had a positive significant effect on performance of Small and Medium Enterprises of fish trading along Lake Victoria region (coefficient of correlation 0.698, p=0.000<.005, t=12.166).

Implications: The study findings have shown that usage of finance is significant hence available funds should be utilized to enable performance maximization.