Thesis:

Assessment of financial innovation on the growth of women Owned enterprises in Eldoret, Uasin Gishu county, Kenya

The global expansion of financial innovations—encompassing new financial products, platforms, and delivery mechanisms—“has transformed how entrepreneurs access and manage financial services. However, despite these advancements, women-owned enterprises continue to face significant financial exclusion, limiting their potential for growth and sustainable development. This study investigated the effects of financial innovations on the growth of women-owned enterprises in Eldoret Town, Uasin Gishu County, Kenya. Specifically, it examined the roles of mobile banking, digital loans, and table banking in enhancing enterprise performance. The study was anchored in the Pecking Order Theory, which explains financing preferences under conditions of information asymmetry, and Stakeholder Theory, which emphasizes the role of diverse actors in shaping business outcomes. Employing a descriptive research design, the study targeted a population of 1,200 women entrepreneurs operating in the trade and service sectors. Using stratified random sampling, a sample of 102 respondents was selected, and data were collected via structured questionnaires and interview guides. A pilot study was conducted in Trans Nzoia County to assess the reliability and clarity of the research instruments. Validity was ensured through expert reviews, while reliability testing using Cronbach’s alpha yielded an overall reliability coefficient of 0.88, confirming internal consistency. Both descriptive and inferential statistical methods were used to analyze the data. Correlation results revealed strong positive relationships between financial innovations and business growth: mobile banking (r = 0.721, β = 0.387, p < 0.01), digital loans (r = 0.689, β = 0.356, p < 0.01), and table banking (r = 0.654, β = 0.274, p < 0.01). Mobile banking was particularly noted for improving access to financial services, lowering transaction costs, enhancing efficiency, and supporting financial record-keeping. Digital loans were recognized for providing timely capital, enhancing financial planning, and enabling enterprise expansion, despite some concerns around repayment terms. Table banking emerged as a vital mechanism for providing affordable credit and peer support in communities with limited access to formal financial systems. The study concludes that financial innovations significantly enhance the growth and resilience of women-owned enterprises by improving financial access, operational efficiency, and strategic expansion. It recommends that stakeholders—including banks, fintech firms, and government agencies”—strengthen mobile banking security, streamline digital loan application processes, and formalize table banking frameworks. Additionally, the study calls for gender-responsive financial policies and increased investment in digital and financial literacy programs to promote inclusive entrepreneurship and sustainable economic development.