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Small Business Financing(Entr 431) Question Paper

Small Business Financing(Entr 431)

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2011

TIME : 2 HOURS
INSTRUCTIONS • Answer Question ONE and any Other TWO Questions
Question 1
a) A healthy growth of Financial institutions in Kenya is important because they facilitate intermediation between savers and borrowers as well as providing a payment system. Discuss the financial institutions in Kenya. Highlighting their challenges in lending to small businesses. (20marks)
b) Discuss non-financial services citing reasons why banks offer them to micro and small enterprise in Kenya. (10marks)

Question 2
a) Explain the sources of entrepreneurial finance for starting successful small enterprise in Kenya. (10marks)
b) Analyze the mechanisms and innovations for providing entrepreneurial finance to micro and small enterprises in Kenya. (10marks)

Question 3
a) Distinguish between minimalist and integrated approaches to credit delivery. (10marks)
b) Discuss Grameen bank model of credit delivery in the context of the following: i) Basic features (10marks) ii) Organizational structure (3marks) iii) Replicability (3marks)

Question 4
a) The financial institutions continue to face various constraints in lending to micro and small enterprises (SMEs) inspite of developing various credit models. Explain the constraints towards lending to small scale enterprises. (10marks)
b) What problems do the investors experience while implementing financial programmes for small scale enterprises in Kenya. (10marks)

Question 5
a) the sessional paper No. 1 of 1992 on small enterprise and Jua kali development in Kenya provides interventionist policy frame work for the promotion of small and medium enterprises. In the light of this sessional paper discuss the strategies the government plans to use in solving the problems of lending to small enterprises. (10marks)
b) Briefly discuss any FIVE users of the financial statements in a small scale business. (10marks)

Small Business Financing(Entr 431) Question Paper

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