Abstract:
The purpose of this study was to analyze the factors influencing access to credit services by women
entrepreneurs in Kenya; a case of Isiolo town. Entrepreneurship has been regarded as a major contributing
factor to the economic growth and poverty alleviation both in urban and rural areas. Organizations for
Economic Co-operation and Development (OECD) reports indicate growing phenomena of women
entrepreneurship both in developed and developing countries. In some countries, women-owned businesses are
increasing at a very rapid pace in terms of both numbers and turnover. The scope of the study was selected
from financial lending institutions in Isiolo County and women entrepreneurs targeting those who are members
or have accounts in these financial institutions. There are 6 registered FIs operating within the Isiolo town
which has a total of 18 management employees and 20 registered women entrepreneurs. The researcher
conducted a census on the FIs managers and as well as women entrepreneurs in Isiolo town from the target
population. To analyze the data, the researcher applied the chi-square testing the hypothesis of the study. The
study recommends that the financial institutions should establish lending procedures which will attract women
entrepreneurs and accommodate them in access of credit. It also recommended that the financial institutions
should encourage the use of affordable collaterals that will ensure that women entrepreneurs are able to
access credit. Lack of affordability collateral was one of the challenges that was highlighted as
hindrances to women accessing credit. The financial institutions should ensure that they train women
entrepreneurs on investment opportunities in order to increase purposes of credit for women entrepreneurs. This
will ensure women entrepreneurs will always have a purpose to do with credit advanced to them by financial
institutions.
