(Journal of Finance, 2021-05) Mwenda, Bornface; Kambura, Susan; Kanyiri, Adel
The limited access to informal and formal credit by entrepreneurs has been identified as a
major constraint to growth of micro and small enterprises in Isiolo County. The County is
also characterized by high level of unemployment, particularly among the youths, nomadic
life and low educational levels and all these can be attributed to limited access to credit. The
study sought to establish the influence of credit awareness on performance of micro and small
enterprises in Isiolo North Sub-County. Descriptive survey research design was adopted. The
unit of analysis was 120 micro and small enterprises within Isiolo Town. The unit of
observation was owners or managers of the businesses. Data was collected through structured
questionnaires. Data was analyzed using descriptive and inferential statistics. The findings
revealed that credit awareness had a positive and significant effect on performance of micro
and small enterprises. The study concluded credit awareness significantly contributed to the
performance of micro and small enterprises. The study recommended the need for financial
institutions to strengthen aspects related credit awareness. They should specifically enhance
visit to business premises by credit officers, organize seminars and provide timely and
accurate information about credit micro and small enterprises’ owners.
