CHAPTER TWO: LITERATURE REVIEW

This study sets to find out the role of table banking on women’s small business growth. The
literature review chapter starts with a theoretical review followed by empirical literature. It
provides an in-depth analysis into the objectives of the study, and reviews studies on the table
banking and how women’s small businesses are growing. The chapter concludes by highlighting
the research gaps and developing a conceptual framework for the study. According to Polonsky
(2005) literature review is theoretical reviews that examine the various theories that have been
put forward and an argument to which is most relevant or it suggest there is more general
background review of literature which will give insight into the issues being examined. The main
purpose of literature review is to form the framework within which the research findings are to
be interpreted.

2.1 Theoretical framework

The study on the role of table banking on women’s small business growth, will be guided by two
theories: social capital theory and symbolic interaction theory (Max Weber, 1864-1920).
Mmmm points out that an important role of the researcher is to build theories based on facts,
rather than on naïve beliefs and subjective impressions about the world. This theory building
process involves thinking actively and intentionally about the phenomenon at hand.

2.1.1 Social capital theory

Social capital theory which states that social relationships are resources. In this study this theory

explains the need of social connections, in order to solve problems, improve wellbeing, pursue

shared objectives and take collective action. This theory is relevant to the study in that, when

women come together and collectively save money for loan allocation to its members this helps

the women to grow their small businesses. Sustainability of table banking is dependent on the

trust, of each member in order to achieve a common purpose (Coleman, 2007).

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2.1.2 Symbolic Interaction Theory (Max Weber, 1864 – 1920)

This theory deals with explaining how individuals relate with one another. It also shows how

people rely on the opinions of others, especially while in a group setting. More so when a

situation is highly uncertain and no objective evidence is readily available (Kombo & Tromp,

2006). This is a theoretic orientation containing, assumptions proposing that the social world is

made up of symbols, which human beings use as a means of interaction. This theory matches

table banking concept, as individuals come together to join hands to be able to lift one another

financially also with ideas (Kombo & Tromp 2006).

2.2 Empirical literature review

This chapter presents reviews of existing literature to clarify the relationship between table

banking variables given in the conceptual framework, explaining the role of table banking on

women’s small business growth, , organizational learning and networking power on

empowerment of women. The review has been conducted on works across the world and Africa

relating to theories, concepts and principles about table banking practice targeting the

empowerment of women. This section concludes with the conceptual framework of the study.

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All literature review for the study subject is done on the basis of the sub topics or specific

objectives. This sub heading is a review of literature of the specific variable of the manipulated

independent variable and their engagements. The specific variables or specific study objectives

will compose the sub headings of this section. Look for big academic debates on the subject

matter. The literature review should be analytical and should either support or refute an argument

presented by a particular author based on the researchers’ study topic and its purpose.

2.2.1 Micro finance

Access to credit from Micro Finance Institutions (MFI) is good. It is savings that enhance
household cash-flow management and are a better fit for women’s small business growth.There
are many studies that have been conducted with regard to the various aspects of table banking
that has made it successful to its participants. For examples studies carried out by Conner (2010)
and Barry (2008) indicated that table banking and Micro-finance(MF) in general increased
financial access among people in general through savings mobilization and extension of
affordable credit. They found out that these two aspects were important and critical to the
success of their activities which helped them to further make and accumulate savings overtime.
With this they were able to accumulate personal wealth, house hold income and therefore leading
to an improvement in their personal well-being.

2.2.2 Training

Majority of the respondents in table banking indicated that they required to be put in financial
and entrepreneurial training before being handed the loans, because most of the money they had
gotten was mismanaged.Entrepreneurship education and training involves the development of
personal skills and behavior change. It refers to skills, knowledge and mental capability of
entrepreneurs. Training modifies the behavior of entrepreneurs while at the same time adding
skills and experience to entrepreneurs. This helps them to effectively perform their duties and
responsibilities. Skills help owners of business to gain competitive edge over other businesses.

3
 Inaccessibility to training facilities among women entrepreneurs limits their ability to manage
business activities (Roomi, 2009).
2.2.3 Market

2.2.4 Transportation

2.2.5 Table banking on women’s small business growth

2.3 Research gap

Majority of women adopt table banking concept due to; lack of property rights, gender
discrimination, credit from banks requiring collateral, low income, mobility constraints and
illiteracy (Shane & Venkataraman, 2015). This study will investigate the inability to access
affordable credit in Kasarani, which hinders many women’s small businesses from either starting
their own or expanding existing businesses and capital base. The emergence of table banking
groups attempts to fill the existing credit gap, by offering affordable easy credit with no
collateral and low interest rates. Table banking concept was conceived with the idea of filling the
gap left by formal financial institutions in extending affordable and sustainable credit to women.
All these with an aim to improved livelihood of the women and their families.

2.4 Conceptual framework

The conceptual framework in this research study outlines the theoretical model of how the
logical sense is achieved of the relationships among the several factors that have been identified
with the dependent and independent variables of the problem that is under study. The aim of the
study is to examine the variables that enhance the effectiveness of table banking in their
contribution on women’s small business growth.

Independent variables dependent variables

Micro finance

Access to capital

Saving Culture 4
 Table banking on women’s small
Training business growth

Skills acquisition Improved access to credit

Access to information Improved living standards

Improved source of income

Market

Consumer satisfaction

Available market
opportunities

Transportation

Good infrastructure
F
Cheap means of transport

figure 2.1: Conceptual model. Source: Author (2018)

2.5 Summary

This chapter provided an overview of other studies, by giving the general literature review, a
theoretical review, which is an extension of theories that relates most to this study and finally a
conceptual framework, which is a diagram representation of the study.

5
REFERENCES

Coleman, S., (2007). The Role of Human and Financial Capital in the Profitability and Growth
of Women-Owned Small Firms. Journal of Small Business Management.
Kombo, D.K. and Tromp, D.L.A. (2006). Proposal and Thesis Writing - An Introduction.
Paulines Africa Publishers; Nairobi.

Polonsky, M.J; Waller. (2005).Designing and Management a Research Project. Printed by Sage

Publication.

Shane, S. & Venkataraman, S. (2015). The Promise of Entrepreneurship as a Field of

Research. The Academy of Management Review.

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 CHAPTER THREE: RESEARCH METHODOLOGY

Methodology is a body of practices, procedures and rules used in studies. Method is a simple

procedure for making an article or solving disputes. The basic research methodology paradigms

are to define the population, draw a representative sample from the population, to do research

with the sample and to infer the results to the population. Define the research variables and

expound briefly on what will be covered. Concisely state the objectives of the study or the study

questions.

3.1 Research design

According to Kothari (2004) a research design is the arrangement of conditions for collection

and analysis of data in a manner that aims to combine relevance to the research purpose with

economy in procedure, which constitutes the blue print for collection, measurement and analysis

of data.

According to Mugenda and Mugenda (2003) a research design is referred to as a blue print that

shows the method to be used in collecting and analyzing data or a component of a proposal

which briefly points out why the chosen design is appropriate for the proposed study.

In this study, the researcher will use descriptive design because it is appropriate to describe the

event and group of people in, to acquire complete and accurate information through interaction

of both the researcher and respondents through the questionnaires. Hence this technique is useful

in displaying a situation or a group fully.

3.2 Study site

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Introduce the sub heading according to scholarly literature. The study site is the geographical

location of the research. What value does the research site add to the significance, limitations,

scope and the assumptions of the study? Include a map of the study site in the appendices and

refer to it here.

3.3 Target population

Introduce the sub heading according to scholarly literature by defining what a study population

is. The basic research paradigm or purpose is to define the target population which is the

“whole” population that has the characteristics you want to study. Narrow to the study

population which is more refined in the study attributes. This is the population from which the

study sample will be drawn. Draw a representative sample from it using a research sampling

technique. This will help generalize the results from the sample to the population when the work

is complete and statements are made, they will apply to the population.

3.3.1 Sample size determination

Introduce the sub heading according to scholarly literature. A sample is a small portion of the

population that is used for a research investigation. It is a proportion of the population that

possesses the same characteristics as the population that you are investigating. The larger the

sample, the more likely it is that it’s mean and standard deviation are representative of the mean

and standard deviation of the larger population.

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Availability of resources and time are some of the factors to be considered when deciding on the

sample size. However, every efforts should be made to ensure the methodology used to calculate

the study sample has no bias and that the sample is a true representative of the larger population

within the set limits (usually 95% level of confidence).

Larger samples are necessary when groups must be broken into sub groups, when results indicate

there could be a bias or destruction of data may be expected, when the target population is very

heterogeneous, and when there is political instability in the study site. Ensure there are enough

participants for the study and they are a representation of the population.

Provide a Table of population and the sample, explaining how you obtained your sample size

from the population.

3.4 Sampling procedure

Show the target population in numbers and explain how the study sample group will be chosen

from the target population. You can use statistical formulas and include all the required details.

Appropriate sampling procedure ensures that there is no bias in selecting the study sample.

Random sampling (simple random sampling, systematic random sampling, etc.) ensures removal

of any bias in sample selection.

3.5 Data collection methods

The study used primary data only. The primary data was collected directly from the respondents

using questionnaires. According to Toulliatos & Compton (2008), questionnaires are best used in

9
studies concerned with variables that cannot be directly observed as it involves views or opinions

and perspectives. Structured questionnaires were used as research instruments consisting of a set

of questions to which respondents were expected to react to in ticking the appropriate boxes. For

respondents who did not understand English and were unable to respond in writing, the

researcher interrogated them on record. The recorded conversation was transcribed verbatim by

the researcher or the research assistant. Questionnaires were administered in person and through

research assistants

3.5.1 Pilot testing

Explain how the research instruments will be/were field tested on a smaller level to ensure

instrument validity and reliability. Pilot testing must be done on a group in the population with

the same characteristics as the study sample but are not part of the study sample.

3.5.2 Instruments reliability

Instrument reliability is a measure of the degree to which a study instrument yields consistent

results or data after repeated trials. Determining reliability in a study is concerned with

measuring if the instrument will give the same results if offered on a repeat basis to the same

individuals. There should be consistency of results obtained. Methods used include “test-retest”,

“split-halves” or “alternative form method.”

3.5.3 Instruments validity

Validity is the extent to which an instrument measure that which it is intended to measure and

can be accurately interpreted and generalized i.e. is the accuracy and meaningfulness of

inferences based on the findings. Does the tool for the study measure what was intended as per

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the study questions and hypothesis (es). Determining content validity, construct validity and

criterion validity is very important. The answers should be subjected to statistical analysis to

determine the level of validity.

3.6 Data analysis and presentation

Some information is collected through collection of categorical data, other information may

require open ended tools. This data is later organized for analysis as per the study questions or

specific objectives. In some studies, a rating scale is more useful when behaviour needs to

evaluated on a continuum as Likert Scale that changes the quality to numerical measurements

(ordinal)

An appropriate method of data processing should be put in place. Describe that here. The types

of research questions will guide the choice of data analysis techniques and how this data will be

presented either in graphs, charts, tables, etc. for ease of interpretation.

Descriptive statistics will give characteristics and profile of the study sample. Additional analysis

could show similarities and differences between groups but may show levels of significance

unless that data is interrogated further.

Use of inferential statistics determine associations between variables, e.g. when correlation tests

are used. This may show positive or negative relationships between variables. Regression

determine how one or more independent variable predict the value of a dependent variable.

11
The study is not complete without testing the set hypothesis. To accept or reject the study null

hypothesis the study will be guided by statistics based on the level of significance and is a basis

for discussing the findings in the subsequent chapters.

3.7 Ethical consideration

Informed consent must be obtained from respondents in any research by explaining the purpose

of the study and the confidentiality of the information guaranteed. The major ethical issue of

concern by the respondents was privacy and confidentiality of the respondents, anonymity of the

respondents and researcher responsibility.The researcher maintained high level of confidentiality

in order not to infringe on the privacy and confidentiality of the respondents. Furthermore, the

respondents were offered the freedom to ignore items that they did not wish to respond to.

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References

List in alphabetical order, ensure all the citations in the text are referenced here in APA style 6 th

Edition. Indent the second line and subsequent lines of the referenced material.

For example:

Bateman, S. and Joshua, H. (2013). Maritime Challenges and Priorities in Asia:

Implications for Regional Security. Routledge Publishers.

Beall, J.C. and Restall, G. (2014). Logical Consequences. The Stanford Encyclopedia of
Philosophy.
Creswell, J. W. & Plano Clark, V. L. (2011). Designing and Conducting Mixed Methods
Research. (2nd ed.). Thousand Oaks, CA: Sage.
Gillham, B. (2008). Developing a Questionnaire (2nd ed.). London, UK: Continuum
International Publishing Group Ltd.
Kombo, D.K. and Tromp, D.L.A. (2011). Proposal and Thesis Writing - An
Introduction. Paulines Africa Publishers; Nairobi.

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APPENDICES

Appendix 1 APPENDIX: 1
Questionnaire Cover Letter

10/11/2022.

Dear Respondent,

REF: QUESTIONNAIRE

Iam a student at St Paul’s University undertaking Degree in Community Delopment. As part of

academic requirement lam undertaking a research on the role of table banking on women’s

small business growth Kasarani, Nairobi County.

In the above regard, I have selected out of many to provide information that is needed to meet

the objectives of this study. I would kindly request you to provide the information by completing

the attached questionnaire.

Please note that the information obtained from questionnaire will be used for research purpose

only and will be accorded the required confidentiality.

Yours Sincerely,

JOAN MUCHIRI

BACDDIST381116

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Appendix 2: Questionnaire
Develop questionnaire based on the specific objectives or study questions.

15
16
Appendix 3: Work plan
The proposed work plan for the research is as tabulated (Use Gantt Chart)

17
Appendix 4: Budget

The proposed budget for the research is as tabulated.

S/No. Item description Quantity Unit cost Amount

1.
2.
3.
4.
5.

Total 000,000

Appendix 5: Map of the study area

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Insert a map of the study area with clear legends and the true North. Also include the source of

your map.

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20
21
22
8. Theoretical Framework

Symbolic Interaction Theory( Max Weber, 1864-1920)

This theory deals with explaining how individuals relate with one another(Kombo & Tromp,
2006). This is a theoretic orientation containing, assumptions proposing that the social world
is made up of symbols, which human beings use as a means of interaction.This theory matches
table banking concept, as individuals come together to join hands to be able to lift one another
financially.

23
24