Enhancing Small and Medium Enterprises Credit Access and Performance through Technological Integration

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Douglas John & Wasike Jotham

Abstract

Small and Medium Enterprises in Kenya face innumerable challenges that affect their financialperformance. Lack of financiers, market information gaps, and poor financial managementpractices are some of the factors that affect performance of Small and Medium Enterprises,unabated. These challenges can be solved through technological integration of the key market
participants, especially financiers and suppliers. The purpose of this study was to establish atechnological mechanism that brings together SMEs, financiers, and suppliers in a singletechnological platform with a view of improving business access to finance and profitability.
The objective of this study was to establish a technological platform that integrates key market
participants. A desk research was applied whereby online research on technological integrationof market participants and SMEs financing and performance were analyzed. The study foundout that technological integration of SMEs and key market players (creditors and suppliers)would enable the SMEs to access credit easily, provide perfect information on prices of
commodities, promote fair competition, increase profits and minimize opportunity cost.Besides, it will help creditors access credit worthiness of SMEs by reviewing their transactions
and reduce credit default risk. In addition, it will help creditors and suppliers to access a largermarket. The paper recommends development of an application and an online system tailored toSMEs needs, creditors and suppliers in order to harness full benefits of technological
integration.

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