Are we formal yet? The evolving role of informal lending mechanisms to support entrepreneurship and poverty alleviation in central Kenya Online publication date: Sat, 25-May-2013
by Ashley Francis; Abdalla Nassar; Khanjan Mehta
International Journal of Social Entrepreneurship and Innovation (IJSEI), Vol. 2, No. 2, 2013
Abstract: Entrepreneurship has substantially contributed to the economic growth of Kenya. However, multitudes of the country's poor have yet to experience the benefits of this growth due to limited access to capital. Microfinance institutions exist in central Kenya but serve the needs of only a handful of entrepreneurs that want to engage in small businesses. Consequently, many Kenyans turn to various informal lending mechanisms to pursue their entrepreneurial dreams and bolster their livelihoods. This paper examines how adults in and around the town of Nyeri, Kenya access capital from a wide variety of formal and informal sources. Several modes of borrowing are identified and reasons for choosing lenders are analysed. Collectively, this data suggests the gradual expansion and formalisation of informal lending mechanisms. This paper provides insights to entrepreneurs, lending institutions and development agencies to help develop effective business and partnership strategies that can empower enterprising individuals in impoverished communities.
Online publication date: Sat, 25-May-2013
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Social Entrepreneurship and Innovation (IJSEI):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org