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Credit and Employment Growth among Small Enterprises in Kenya

Published: 20 June 2013
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Abstract

Policy makers in Kenya expect micro and small enterprises to provide the bulk of new jobs created in the economy yet these enterprises face significant credit constraints. This study applied regression analysis to establish the link between the credit constraint and employment growth of small enterprises in Kenya. The results failed to confirm any important role for the credit constraint in limiting small firm employment growth. However, the credit constraint variable posted significant results when interacted with other variables such as access to workspace, access to technology and formality status of the enterprise. This was interpreted to mean that the marginal effect of the credit constraint on firm growth mainly depended on access to workspace, access to technology and formality status. This leads to the conclusion that the current emphasis on credit alone and the minimalist paradigm need to be re-evaluated.

Published in International Journal of Business and Economics Research (Volume 2, Issue 3)
DOI 10.11648/j.ijber.20130203.14
Page(s) 69-76
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Entrepreneurship, Credit, Economic Growth, Developing Economies

References
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    Eliud Dismas Moyi. (2013). Credit and Employment Growth among Small Enterprises in Kenya. International Journal of Business and Economics Research, 2(3), 69-76. https://doi.org/10.11648/j.ijber.20130203.14

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    Eliud Dismas Moyi. Credit and Employment Growth among Small Enterprises in Kenya. Int. J. Bus. Econ. Res. 2013, 2(3), 69-76. doi: 10.11648/j.ijber.20130203.14

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    AMA Style

    Eliud Dismas Moyi. Credit and Employment Growth among Small Enterprises in Kenya. Int J Bus Econ Res. 2013;2(3):69-76. doi: 10.11648/j.ijber.20130203.14

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  • @article{10.11648/j.ijber.20130203.14,
      author = {Eliud Dismas Moyi},
      title = {Credit and Employment Growth among Small Enterprises in Kenya},
      journal = {International Journal of Business and Economics Research},
      volume = {2},
      number = {3},
      pages = {69-76},
      doi = {10.11648/j.ijber.20130203.14},
      url = {https://doi.org/10.11648/j.ijber.20130203.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20130203.14},
      abstract = {Policy makers in Kenya expect micro and small enterprises to provide the bulk of new jobs created in the economy yet these enterprises face significant credit constraints. This study applied regression analysis to establish the link between the credit constraint and employment growth of small enterprises in Kenya. The results failed to confirm any important role for the credit constraint in limiting small firm employment growth. However, the credit constraint variable posted significant results when interacted with other variables such as access to workspace, access to technology and formality status of the enterprise. This was interpreted to mean that the marginal effect of the credit constraint on firm growth mainly depended on access to workspace, access to technology and formality status. This leads to the conclusion that the current emphasis on credit alone and the minimalist paradigm need to be re-evaluated.},
     year = {2013}
    }
    

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    T1  - Credit and Employment Growth among Small Enterprises in Kenya
    AU  - Eliud Dismas Moyi
    Y1  - 2013/06/20
    PY  - 2013
    N1  - https://doi.org/10.11648/j.ijber.20130203.14
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    T2  - International Journal of Business and Economics Research
    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
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    AB  - Policy makers in Kenya expect micro and small enterprises to provide the bulk of new jobs created in the economy yet these enterprises face significant credit constraints. This study applied regression analysis to establish the link between the credit constraint and employment growth of small enterprises in Kenya. The results failed to confirm any important role for the credit constraint in limiting small firm employment growth. However, the credit constraint variable posted significant results when interacted with other variables such as access to workspace, access to technology and formality status of the enterprise. This was interpreted to mean that the marginal effect of the credit constraint on firm growth mainly depended on access to workspace, access to technology and formality status. This leads to the conclusion that the current emphasis on credit alone and the minimalist paradigm need to be re-evaluated.
    VL  - 2
    IS  - 3
    ER  - 

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Author Information
  • Macroeconomics Division, Kenya Institute for Public Policy Research and Analysis (KIPPRA), Nairobi, Kenya

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