Influence of Information Availability on the Choice of Source of Entrepreneurial Finance
Njeru, A. W.
Nyangaresi, Wycliffe M.
Waithaka, G. N.
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This study examines the influence of information availability on the choice of source of entrepreneurial finance for small and medium sized enterprises in Thika district of Kenya. This study adopted a mixed methods empirical survey design. The population of interest was composed of all SMEs in Thika District. Stratified random sampling method was used and 259 SMEs were selected out of the target population of 800 small- and medium-sized enterprises. The questionnaire was addressed to the owners or finance managers. Analysis of the data was done using descriptive and inferential statistics. The study rejected the null hypothesis, HO since choice of source of financing showed a statistically significant association with information availability, in form of newspapers and magazines, shows and exhibitions and personal contacts. The study found it necessary that entrepreneurs should adopt medium of communication that would lower the perceived risk in financial transactions especially that perceived in assuming debt capital. Mainly, the forms of communication were: personal selling, shows and exhibitions, where a certain level of interaction between borrower and lender is possible.