Abstract:
Small and Medium Enterprises in Kenya face innumerable challenges that affect their
financial performance. Lack of financiers, market information gaps, and poor
financial management practices are some of the factors that are likely to affect
performance of Small and Medium Enterprises. These challenges can be solved
through technological integration of the key market participants especially financiers
and suppliers. The purpose of this study was to establish a technological mechanism
to bring together SMEs, financiers, suppliers in a single technological platform with a
view of improving business access to finance and profitability. A desktop research
was applied whereby online papers on the theme of technological integration of
market participants and SMEs financing and performance were analyzed. Results
showed that technological integration of SMEs and Key market players (Creditors
and suppliers) would enable the SMEs to access credit easily, provide perfect
information on prices of commodities, promote fair competition, increase profits and
minimize opportunity costs. Besides, it would help creditors to assess credit
worthiness of SMEs by reviewing their transactions, reduce credit default risk and
help creditors and suppliers to access a larger market. We recommend development
of an application and an online system tailored to the needs of SMEs, creditors and
suppliers in order to harness full benefits of technological integration.
