Access to Finance and Performance of SMEs in Lodwar Municipality

Purpose: To establish the effect of access to finance on performance of SMES in Lodwar Municipality Methodology: The research adopted a descriptive design. The target population for this study comprised of SMEs owners/managers. The study relied on primary data, which was obtained directly from respondents. Data collection was conducted through the use of structured questionnaires, specifically tailored to capture information relevant to the study variables from SMEs in Lodwar Municipality. Questionnaires were selected as the preferred tool due to their efficiency in collecting uniform responses from a relatively large sample. Findings: The findings indicate a strong positive correlation between access to financing and the performance of small and medium-sized enterprises (SMEs). This implies that as SMEs gain better access to financial resources, their overall performance improves significantly Unique Contribution to Theory, Practice and Policy: Policymakers, financial institutions, and development partners should therefore prioritize interventions that lower borrowing barriers, provide affordable credit and strengthen financial literacy among entrepreneurs. By addressing the financing gap, such efforts would not only boost the productivity and profitability of SMEs but also contribute to broader economic development through increased employment, innovation, and income generation.