IMPACT OF FINANCIAL SERVICES ASSOCIATION OF RONGO ON SMALL-SCALE ENTERPRISE PERFORMANCE IN RONGO, RONGO DISTRICT, KENYA

DECLARATION .................................................................................................................... i

APPROVAL ............................................................................................................................ ii

DEDICATION ........................................................................................................................ iii

ACKNOWLEDGEMENT .................................................................................................... iv

TABLE OF CONTENTS ....................................................................................................... v

LIST OF TABLES ............................................................................................................... viii

LIST OF FIGURES ............................................................................................................... ix

DEFINITION OF TERMS ..................................................................................................... x

ACRONYMS .......................................................................................................................... xi

ABSTRACT ........................................................................................................................... xii

CHAPTER ONE .................................................................................................................... I

INTRODUCTION ................................................................................................................. l

1.2 PROBLEM STATEMENT ............................................................................................ 2

1.3 PURPOSE OF THE STUDY ......................................................................................... 3

1.4 OBJECTIVES OF THE STUDY ................................................................................... 3

1.5 RESEARCH HYPOTHESIS (NULL-HYPOTHESIS) ............................................... 3

1.6 SCOPE OF THE STUDY ................................................................................................ 3

1.7 SIGNIFICANCE OF THE STUDY .............................................................................. A

CHAPTER TWO .................................................................................................................. 5

REVIEW OF THE RELATED LITERATURE ............................................................ 5

2.0 INTRODUCTON ............................................................................................................. 5

2.1 GROWTH OF NGOS, THEIR ROLES AND STRATEGIES IN THE PROMOTION OF SSEs .................................................................... 5

2.2 ROLES PLAYED BY NGOS IN ENTERPRISE DEVELOPMENT ....................... 7

2.3 PROBLEMS/CONSTRAINTS FACING SMALL SCALE ENTREPRENEURS WHO ARE CLIENTS OF NON-GOVERNMENTAL MICRO-FINANCIAL INSTITUTIONS AND OTHER FINANCIAL SECTORS ............................................. 10

2.4 FACTORS THAT LEAD TO SUCCESS IN BUSINESS PERFORMANCE ..... l4

CHAPTER THREE ............................................................................................................ I6

RESEARCH METHODOLOGY .................................................................................... 16

3.1. RESEARCH DESIGN .................................................................................................. 16

3.2 POPULATION AND SAMPLE SIZE DETERMINATION .................................. 16

3.3 INSTRUMENTATION ................................................................................................ 17

3.4 DATA COLLECTION PROCEDURE ...................................................................... 18

3.5 TECHNIQUE FOR DATA ANALYSIS .................................................................... I9

3.6 LIMITATIONS ............................................................................................................... 20

CHAPTER FOUR ............................................................................................................... 21

DATA ANALYSIS, DISCUSSION AND INTERPRETATION .............................. 21

4.0 INTRODUCTION ......................................................................................................... 2I

4.1 START UP CAPITAL ACQUISITION AND ACCESS TO LOAN FACILITY ............ 21

4.2 LOAN FACILITY UTILIZATION BY FSAR CLIENTS ...................................... 23

4.3 SERVICES OFFERED BY FSAR TO SMALL SCALE ENTREPRENEURS .... 24

4.4 PROBLEMS FSAR EXPERIENCE WITH CLIENTS WHO TAKE LOANS .... 27

4.5 AVERAGE SMALL-SCALE ENTRPRISE PERFORMANCE IN RONGO IN THE LAST THREE YEARS ................................................... 29

4.6 DETERMINATION OF H0 USING CHI SQUARE ................................................ 30

CHAPTER FIVE ................................................................................................................. 32

FINDINGS, CONCLUSION AND RECOMMENDATIONS .................................. 32

5.0. INTRODUCTION ........................................................................................................ 32

5.1. SUMMARY OF FINDINGS ....................................................................................... 32

5.2 CONCLUSION .............................................................................................................. 33

5.3 RECOMMENDATIONS .............................................................................................. 33

REFERENCES ...................................................................................................................... 35

APPENDICES ....................................................................................................................... 37

APPENDIX A: RESEARCH INSTRUMENTS .............................................................. 37

APPENDIX B: INTERVIEW SCHEDULE ..................................................................... 40

APPENDIX C: PLAN FOR DATA PRESENTATION .................................................. 44

APPENDIX D: CRITICAL VALUE OF CHI-SQUARE .............................................. .47 

ABSTRACT 

This research report is about Impact of financial services association of Rongo on small-scale enterprise performance in Rongo town, Rongo district of Kenya. The investigation was guided by objectives that did seek to identity different types of services the NGO offer to its clients, FSR loan disbursement, loan recovery trends. Problems faced by FSAR and clients due to the loan facility and effects of FSAR financial assistance to selected small scale entrepreneurs. The investigation revealed that many SSEs have accessed FSAR loan facility which has helped them realize positive growth in their business performance. A part from financial assistance in the form of loans. The institute has also offered services such as savings, trainings and counselling for her clients.