INFLUENCE OF ACCESS TO CREDIT ON THE FINANCIAL SUSTAINABILITY OF WOMEN-OWNED AND OPERATED MICRO AND SMALL ENTERPRISES IN VIHIGA COUNTY, KENYA

Purpose of the Study: This study examined the influence of access to credit on the financial sustainability of women-owned and operated micro and small enterprises in Vihiga County, Kenya. It sought to determine whether improved access to financial resources enhances business sustainability by supporting enterprise growth, operational stability, and long-term financial performance among women entrepreneurs. Methodology: The study adopted a descriptive research design targeting 1,000 women-owned and operated micro and small enterprises in Vihiga County. A sample of 100 respondents was selected through stratified random sampling. Primary data were collected using structured questionnaires and analyzed using descriptive statistics, Pearson correlation, and simple linear regression with SPSS. Findings: The findings revealed that access to credit had a positive and statistically significant influence on the financial sustainability of women-owned and operated micro and small enterprises. Correlation analysis established a strong positive relationship between access to credit and financial sustainability (r = 0.693, p < 0.001). Regression analysis showed that access to credit explained 55.4% of the variation in financial sustainability (R² = 0.554), with the regression model being statistically significant (F = 58.213, p < 0.001). Furthermore, access to credit positively predicted financial sustainability (β = 0.152, p = 0.023), confirming its significant contribution to enterprise sustainability. These findings indicate that improved credit accessibility enhances business stability, profitability, growth potential, and long-term operational resilience among women entrepreneurs. Conclusion: The study concludes that access to credit is a significant determinant of the financial sustainability of women-owned and operated micro and small enterprises in Vihiga County. Expanding affordable and accessible credit, strengthening financial inclusion initiatives, and improving entrepreneurs' financial literacy can significantly enhance business sustainability and long-term enterprise growth.