MICROCREDIT AND ITS RELATIONSHIP TO THE GROWTH OF SMALL AND MEDIUM ENTERPRISES IN KONOIN SUBCOUNTY, KENYA

Across the world, a lot of focus has been done on small medium enterprises, especially on its growth. This focus has drawn the attention of microcredit, as a facility towards developing its relationship with the growth of small enterprises. It is from the analysis of various scholars that the study out to establish microcredit and its relationship with small medium enterprise growth in Konoin, Bomet County, this is because SMEs plays a lead role in nation economy. Descriptive research design was used in the study by employing a semi structured questionnaire targeting all the SMEs in Konoin, Bomet County. As a result, researcher targeted 60 retail outlets in the region and out of the total questionnaires issued, only 50 were returned fully filled with minor mistakes and therefore were used for analysis. The study collected data by use of drop and pick method. Moreover, computer software for analysis data called Statistical Package for Social Science version 18 was used. The findings were; SMEs that uses microcredit facility improved their sales for a particular financial year since increase in revenues boosted the profitability hence working capital increased. However, the data showed that there was an improvement in consumer purchasing power for the same financial year attributing to increase in asset base. More people were employed during the financial year in which the business operated due to ability to take microcredit services. Microcredit and its relationship with the growth of SMEs developed a positive approach in SMEs within Konoin, Bomet County, Kenya. Recommendations were; SMEs should be trained on how to use financial management systems in their business for efficiency and effectiveness in tracking financial transactions. SMEs should be encouraged by Banks and other financial institutions to carry out credit appraisal on their business targeting important projects so as to get rid of misappropriation of funds. Financial institutions should take part in mentorship programs where SMEs should be introduced to professional marketers and business development in order to ensure growth of their enterprises.