Microcredit and the growth of small scale businesses in Ayer Sub County, Kole District
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This study set out to examine the role of microcredit in the growth of small scale businesses in Ayer Sub County, Kole district. In order to accomplish this task, four research questions were posed. Question one sought to establish the nature of the microcredit acquired by small scale businesses in Aye Sub-County, question two aimed at finding out whether microcredit raises the stock level of small scale businesses, question three sought to examine whether microcredit improve the level of sales of small scale business and question four aimed at investigating whether microcredit influence the market share of the small scale businesses. The study was conducted through a survey. A stratified random sampling was used to select 57 small scale businesses accessing microcredit from six parishes in Ayer Sub County. The primary data was collected from the field by the researcher from small scale businesses in Ayer sub-county by using sing a self-administered questionnaire. Small scale businesses in Ayer Sub County majorly acquire individual microcredit and mainly acquire a microcredit less than 120000. The studies established that most of the respondents had used microcredit for a period of raging 1 to 4 years and mainly repay their microcredit on a weekly basis. Most of the respondents admitted that microcredit increases stock level. However, as time goes on the stock level starts reducing as a result money put aside to carter for repayment but in most cases does not reduce to the point less than or equal to the original stock level. The study found out that microcredit increases sales. Microcredit leads to increase in the stock level which finally leads to increase in sales. The study findings revealed that microcredit does not increases the market share; most of the respondents admitted that market share remains the same after acquiring microcredit. Therefore, it is recommended that credit programs aimed at providing microcredit to small scale businesses be encouraged. It is recommended that a consistence monitoring of the small scale businesses that acquires microcredit be done by the lending institution.