Hence, the role of Seems in the development process mutinous to be high on the agendas of policy makers and researchers. However, Iambi is struggling with access to formal financial services for its citizens specially the Seems and the informal sector. Family and friends remain the main source for business loan in the informal and / or micro business sector (Stork, 2010). Many challenges and weaknesses have been identified by policy makers in Iambi within the financial sector (Republic of Iambi, 2012). Seems in Iambi lack access to finance especially during start-up phase (Ramadan, 2010).
Previous studies on Seems in Iambi have focused mainly on the whole financial system; therefore this study aims to analyze the trend of SEEM access to bank finance and investigate the relationship between bank finance and SEEM success. This study proposes to address two specific objectives, the first objective will be to review investment policy of banking sector and trend of SEEM access to bank finance and the second objective will be to determine to what extent bank finance is contributing to success of Seems.
This study proposes to use both qualitative and quantitative methods, o make sure the results are reliable and measures what the researcher desires by striking a balance Beethoven the two methods. Under qualitative method, descriptive research design will be used for reviewing the investment policy of banking sector, whereas under quantitative method the researcher intends to use empirical research design, for analyzing the trend of SEEM access to bank finance and determining to what extent bank finance contributes to success of Seems.
For this purpose Ordinary Least Square (OILS) regression method in simple linear form will be used to analyses cross- sectional data. The target population of this study consists of 7114 Seems registered with the Ministry of Trade and Industry (MIT) in Iambi, seven banks (both commercial banks and other banks) and the Ministry of Trade and Industry (MIT).
The sample will be drawn from the target population using stratified random sampling, which is a probability sampling, in which the population is first divided into sub-groups called strata, expected to contain relatively homogeneous units, and samples are taken independently from each stratum (Friend & Wilson, 1997). Seems will be classified according to year of registration and regions in which they operate. Out of the 13 regions of Iambi three regions will be selected at random and sample units will be drawn from the selected 3 regions.
Using year of registration it will be ensured that each sample unit is at least five years old to have a trend of its performance. Due to the relative small size of the banking sector population, data will be collected from all banks and MAT l. The sample size is set at 120 out of Seems registered with the Ministry of Trade and Industry, using the sample size determination criterion developed by Minimums (as cited in Micro, 2005). Both interview schedule and a questionnaire will be used to collect relevant data.
Face to face interviews will be conducted with the selected managers from the banks and the officials from MIT and questionnaires will be used to collect data from the sample Seems. The questionnaire Will be pre-tested by conducting a pilot survey of 1 0 Seems and will be amended if necessary, based on the feedback from the pilot survey. After collecting data it will be checked for completeness. Qualitative data will be coded to enable interpretation and discussion Of responses.
Data collected in written text form, such as SEEM financing policy of banking sector and sources of financing will be analyses using thematic analysis. In order to achieve the first objective, the study will review the trend of SEEM access to finance by performing trend analysis on secondary data collected from banks and Ministry of Trade and Industry. Whereas for the second objective, Ordinary Least Square (OILS) regression method (Us & Sun, 2011) in simple linear form will be used, for testing the allegations and the influence of bank finance on SEEM success measured as return on assets (ROAR).
The researcher makes assumption that ROAR depends on the following bank finance variables in the linear equation: the amount of bank loan, trade credit including bank overdraft as a dummy variable, financial leverage (ratio of long term debt to total assets) and company age. Data entry and analysis including both trend and regression analysis will be performed using Predictive Analysis Software “PAWS statistics”. To make the presentation easier for readers to understand and conceptualize the findings f the research, presentation tools such as bar charts, line graphs and tables will be used.
Ethical and cultural considerations will be followed, where participants will be informed of the objectives and benefits of the study before administering the questionnaire and interview schedule. The researcher will obtain a written signed consent from participants. Further, participants will be informed of their rights and data will be handled by the researcher himself and information loaded on to computer will be password protected. The research results will be shared with those participants who indicate an interest in the outcomes of the present research.