Assessing the Effect of Microfinance Services on Growth of Women Entrepreneurship Provided by Kreamorn Investment

Abstract

Women entrepreneurs play a significant role in the Zimbabwean economy, especially in terms of employment creation, economic growth and performance, and poverty alleviation. The participation of women in entrepreneurial businesses has benefited financial support from various sources including micro finance institutions. The main purpose of this study was to assess the effect of microfinance services offered by Kreamorn Investments on growth of women entrepreneurship in Mutare. The study was guided by four objectives; to determine the influence of microcredit accessibility on growth of women entrepreneurial businesses in Mutare, to establish the influence of ability to save by women entrepreneurs on growth of their businesses, to explore the influence training and advisory services on growth women entrepreneurial businesses and to assess the influence of social capital on growth of women entrepreneurial businesses in Mutare. The study adopted a descriptive research design where the effects of microfinance services on the growth of women entrepreneurs were viewed as a real-life physical process. The study used a pragmatist research approach which allowed for the use of mixed research methods in investigating the factors affecting accessibility to credit, training, social capital, savings and advisory services for women entrepreneurs from Kreamorn Investments. The study population comprised of 1295 women entrepreneurs in Mutare who were clients of Kreamorn Investments. Purposive sampling technique was used to select 100 women entrepreneurs from the study population of 1295. The study utilised questionnaires to gather data from the respondents. IBM SPSS version 21 was used to assist in the data analysis. Multiple linear regression analysis was conducted to test the significance of influence each microfinance service has on Sales Turnover of women entrepreneurship business in Mutare. The study used descriptive statistics in presenting the study findings. The study findings revealed that accessibility to credit, training and advisory services from Kreamorn Investments significantly contributed towards growth of women entrepreneurship. The findings of the study also showed that women entrepreneurs lacked the ability to save and that has negatively impacted upon growth of their businesses. The findings revealed that social capital has an insignificantly influence growth of women entrepreneurs. The study recommended that the MFIs in Mutare should; train entrepreneurs on loan management, intensify business training programmes & advisory services and follow-up be made on their progress, facilitate formation of business oriented Social networks and should encourage the culture of Savings.