The Effects of Microcredit Program on the Performance of Women Owned Enterprises in Embu County

Abstract

The key objective of the MTP for the financial sector is to mobilize savings to realize a savings to GDP ratio of 25% - 28 % as envisaged into the macroeconomic framework underpinning the vision 2030. This will have sustained an increase in the ratio of investment to GDP of around 30% - 32% with growing amount of resources channeled to support agriculture, manufacturing and other key sectors identified under vision 2030 including lending to Micro, Small and Medium Enterprises (MSMEs). This will further the government's policy objective under the ERS, which articulates to improve access to financial services for a large number of Kenyans household and small enterprises, greater efficiency in delivery financial services and ensure the chances of financial crisis are kept to minimum. Microcredit has huge impact as proposed by the government on lives of millions of people particularly women. The study investigated importance contributions made by microcredit on the performance women owned enterprises by determining the influence of financial knowledge on the performance of micro women enterprises and evaluating the return on the assets m terms of profit generated after the investment in Embu County. The study describes the need of microcredit activity and investigates the impacts of microcredit to the poor people in the society with the main focus on the women owned enterprises in the Embu County. The research was concised through client's (The poor people who borrow from the Microfinance Institutions) perspectives and build up the research based on questionnaire, survey interviews and field observations. Therefore, the main objective of this study is to show how microcredit works to improve the quality of poor women residence and reduce unemployment level and how it affects the living standards (Income, Saving and Asset ownership) of the poor people especially women in Embu County