Regulatory Modularity And Access To Capital Market Bysmall And Medium Sized Enterprisesin Kenya


For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

ABSTRACT

The general objective of this study was to investigate the contribution of regulatory modularity on small medium sized enterprises’ access to capital markets in Kenya. Specifically, the study sought to: to investigate the contribution of capital on access to capital markets by small medium sized enterprises in Kenya, to examine the influence of information on access to capital markets by small medium sized enterprises in Kenya, to explore the influence of legal and regulatory requirement on access to capital markets by small medium sized enterprises in Kenya and to investigate the influence of cost of listing on access capital markets by small medium sized enterprises in Kenya. This study was guided by, Pecking Order Theory, Agency cost theory, Credit Rationing Theory and Life Cycle Theory. The target population was 100 SMEs owners. The sample size was 96 SMEs owners. The study used questionnaires, containing both open ended and closed ended questions to obtain primary data. The research instrument was pretested with a sample of the respondents. The reliability of the instrument was estimated using Cronbach’s Alpha coefficient. The research instrument was subjected to content validity test and a pilot test to ensure that the questionnaire was reliable to answer the research questions. This ensured that all facets under the study were covered. For research data analysis and presentation, data was collected, edited and coded to ensure consistence. Descriptive statistics including the means and standard deviations was used to analyze the data and capture the characteristics of the variables under the study. Inferential statistics was used to test the nature and magnitude of the relationship between dependent and independent variables. The correlation results of the study revealed that capital contribution and information sharing are positively related with access to capital market. Results further showed that legal requirements and cost listing are negatively related with access to capital market. Capital contribution, information, legal requirements and cost listing were found to be significant variables in explaining access to capital market. This is supported by coefficient of determination also known as the R square of 48.4%. Regression of coefficients results showed that capital contribution and information sharing are positively and significantly related with access to capital market. Regression results further indicated that legal requirement and access to capital marketare negatively and significantly related. Based on the findings the study concluded that capital contribution, information, legal requirements and cost listing influence access to capital markets. The study recommends that SMEs in Kenya broadens its capital base to increase its competitive advantage in the market. They should also ensure information flow regarding operations within the NSEs. The study recommends that SMEs firms ensure that they meet basic requirements of the Nairobi Securities exchange to qualify listing. NSE should ensure that their legal requirements for SMEs firms are not that tight as those of big firms

Regulatory Modularity And Access To Capital Market Bysmall And Medium Sized Enterprisesin Kenya
For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

Share This

500
Leave a comment...

    Related Works

    ABSTRACT In Kenya, Small and Medium Enterprises (SMEs) have continued to face a mountain of challenges and struggle to achieve significant growth despite their importance to the Kenyan Economy. Imprudent working capital decisions have been highlighted in literature as some of the principal causes of their stagnation and decline in growth.... Continue Reading
    (A CASE STUDY OF NIGERIAN STOCK EXCHANGE)   ABSTRACT The Nigerian Capital Market is indeed a tool for economic growth and development. Many researchers are of the opinion that the market has done well, especially in terms of return on... Continue Reading
    ABSTRACT The Nigerian Capital Market is indeed a tool for economic growth and development. Many researchers are of the opinion that the market has done well, especially in terms of return on investments. If this is true, the impact is supposed to be shown on the economy of the nation. The aim of the research is therefore to evaluate the impact of... Continue Reading
    ABSTRACT The Nigerian Capital Market is indeed a tool for economic growth and development. Many researchers are of the opinion that the market has done well, especially in terms of return on investments. If this is true, the impact is supposed to be shown on the economy of the nation. The aim of the research is therefore to evaluate the impact of... Continue Reading
    ABSTRACT Small and Medium sized enterprises (SMEs) are considered important in both developed and developing countries. Due to increased level of unemployment in Kenya, many individuals have engaged in Small and Medium Enterprises as source of employment. Given the status of the business environment where the competition is intense, SMEs need... Continue Reading
    ABSTRACT Globalization in today’s era of information and technology has significantly affected the business environment. Firms, therefore, must take planned measures in order to grow and maintain their businesses and also make the necessary changes and adjustments to gain competitive advantage. Small and Medium Enterprises-sized (SMEs) in Kenya... Continue Reading
    ABSTRACT The advent of 20th century has seen many organisations embrace the use of technology to enhance performance. Research has indicated that ICT is a driver for any firm to achieve its goals. ICT has been on the forefront in enhancing globalisation of services and organisation’s functions. Various inventions have been made in the ICT field... Continue Reading
    Small to medium-sized enterprises (SMEs) is regarded as the main employment source, technological advancements, and competitive advantages for both developed and developing countries. As a result of competitive pressure and the need for growth in line with increasing its profits margins, these businesses are increasingly employing Information... Continue Reading
    ABSTRACT Small and medium enterprises (SMEs) sector has continued to play an important role in the economy both globally and regionally. The Kenyan government has therefore encouraged the commercial banks to provide credit facilities to this important sector of economy. However, reports have indicated that there is low accessibility of credit... Continue Reading
    ABSTRACT This study, the role of small and medium sized enterprises for economic growth, was undertaken to find out how SME sub-sector in Nigeria has performed and its impact on the economic growth of the country. Small and Medium Scale Enterprises (SMEs) is accepted globally as a tool for empowering the citizenry and economic growth. It has been... Continue Reading
    Call Us Get this work