Influence of Business Training and Financial Literacy on Loan Repayment in Devolved Fund Programmes among Women Entrepreneurs in Homabay County, Kenya
Abstract
Women entrepreneurs immensely contribute to economic development in developing nations. In Kenya, women constitute over 70 percent of new business startups. However, women entrepreneurs face several challenges, including discrimination in access to finance. To overcome these challenges, the national government of Kenya came up with initiatives, including the Women's Enterprise Fund and Uwezo Fund, among others. Women access these funds through groups or as individuals. Despite these interventions, women entrepreneurs in Kenya, particularly in Homabay County, still register a high level of loan defaults in these devolved funds. This study examined the influence of business training and financial literacy on loan repayment in devolved fund programmes among women entrepreneurs in Homabay County in Kenya using a structured questionnaire with a sample of 397 women entrepreneurs. Based on Cronbach's Alpha values above 0.7 for all the study variables, the data were considered reliable. From the descriptive analysis, the majority of the women entrepreneurs participating in devolved funds in Homabay County were financially literate, had a moderate level of business training, and were aware of loan repayment benefits. There was a high positive correlation between business training and loan repayment, as well as between financial literacy and loan repayment. Regression results also reported a significant positive influence of business training and financial literacy on loan repayment. To improve loan repayment, the fund managers should collaborate with training institutions to develop and implement tailor-made training programmes for women entrepreneurs to enhance their business and financial skills
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