The study determined the influence of credit counselling, household debt, and socio-demographic factors on the psychological well-being of the beneficiaries of Women Enterprise Fund (WEF) in Njoro sub-county of Nakuru county in Kenya. The study employed an ex-post-facto research design. The target population was 380 women in Njoro Sub-County who had received WEF loans. A stratified random sample of 190 respondents was selected, 95 women who were current in their loan repayment and 95 who were unable to repay their loans. Data were collected by the use of a structured questionnaire, the 42 item version of Ryff’s Psychological Well-Being Scales (Ryff, 1989) clustered in six dimensions: autonomy, environmental mastery, purpose in life, positive relations, personal growth, and self-acceptance was included. Descriptive and inferential statistics were used to analyse the data at 95% level of confidence. The psychological wellbeing for the women entrepreneurs was found to be (M = 3.91, SD = 0.72) on a scale of 1 to 6. Psychological wellbeing of WEF beneficiaries was positively influenced by credit counselling (β = 0.714, t = 15.08, p < 0.001) and age of household head (β = 0.174, t = 1.94, p < 0.050). Negative statistical significant influences were found between household debts (β = -0.391, t = -2.66, p = 0.008) and psychological wellbeing. Inclusion of credit counselling services in the WEF loaning procedures was recommended.
References
[1]
Abbott, R. A., Ploubidis, G. B., Huppert, F. A., Kuh, D., & Croudace, T. J. (2010). An Evaluation of the Precision Measurement of Ryff’s Psychological Well-Being Scales in a Population Sample. Social Indicators Research, 97, 357-373. https://doi.org/10.1007/s11205-009-9506-x
[2]
Abbott, R. A., Ploubidis, G. B., Huppert, F. A., Kuh, D., Wadsworth, M. E., & Croudace, T. J. (2006). Psychometric Evaluation and Predictive Validity of Ryff’s Psychological Wellbeing Items in a UK Birth Cohort Sample of Women. Health and Quality of Life Outcomes, 4, 76. https://doi.org/10.1186/1477-7525-4-76
[3]
ADB-OECD (2014). Study on Enhancing Financial Accessibility for SMEs Lessons from Recent Crises. Manila: Asian Development Bank.
[4]
Anigbogu, T. U., Onugu, C. U., Onyeugbo, B. N., & Okoli, M. I. (2014). Determinants of Loan Repayment among Cooperative Farmers in Awka North L.G.A of Anambra State, Nigeria. European Scientific Journal, 10, 168-190.
[5]
Bold, M., & Lee, C. (2015). Financial Accessibility and Economic Growth. East Asian Economic Review, 19, 143-166. https://doi.org/10.11644/KIEP.JEAI.2015.19.2.294
[6]
Chaudhuri, B. R. (2010). Credit and Women Empowerment: Is the Relationship Positive. New Delhi: Indian Institute of Foreign Trade.
[7]
Choi, L. (2009). Financial Stress and Its Physical Effects on Individuals and Communities. Community Development Investment Review, 5, 120-122.
[8]
Diener, E., Ng, W., Harter, J., & Arora, R. (2010). Wealth and Happiness across the World: Material Prosperity Predicts Life Evaluation, Whereas Psychosocial Prosperity Predicts Positive Feeling. Journal of Personality and Social Psychology, 99, 52-61. https://doi.org/10.1037/a0018066
[9]
Diener, E., Wirtz, D., Tov, W., Kim-Prieto, C., Choi, D., Oishi, S., & Biswas-Diener, R. (2009). New Measures of Well-Being: Flourishing and Positive and Negative Feelings. In E. Diener (Ed.), Assessing Well-Being: The Collected Works of Ed Diener (pp. 247-266). Social Indicators Research Series 39, Berlin: Springer Science and Business Media B.V. https://doi.org/10.1007/978-90-481-2354-4_12
[10]
Dobbie, W., & Song, J. (2015). Debt Relief and Debtor Outcomes: Measuring the Effects of Consumer Bankruptcy Protection. American Economic Review, 105, 1272-1311. https://doi.org/10.1257/aer.20130612
[11]
Dolan, P., Peasgood, T., & White, M. (2008). Do We Really Know What Makes Us Happy? A Review of the Economic Literature on the Factors Associated with Subjective Wellbeing. Journal of Economic Psychology, 29, 94-122. https://doi.org/10.1016/j.joep.2007.09.001
[12]
Dupas, P., Keats, A., & Robinson, J. (2019). Expanding Banking Access to the Rural Poor in Kenya: Challenges and Opportunities. New Haven, CT: Innovations for Poverty Action (IPA) Poverty-action.org.
[13]
Huppert, F. A. (2009). Psychological Well-Being: Evidence Regarding Its Causes and Consequences. Applied Psychology, Health and Wellbeing, 1, 137-164. https://doi.org/10.1111/j.1758-0854.2009.01008.x
[14]
Ijaza, A. K., Mwangi, S. W., & Ng’etich, K. A. (2014). Challenges Faced by the Women Enterprise Fund in Kenya: A Survey of Hamisi Constituency, Vihiga County-Kenya. Research Journal of Finance and Accounting, 4, 20-28.
[15]
Kahneman, D., & Deaton, A. (2010). High Income Improves Evaluation of Life but Not Emotional Well-Being. PNAS Proceedings of the National Academy of Sciences of the United States of America, 107, 16489-16493. https://doi.org/10.1073/pnas.1011492107
[16]
Kiraka, R. N., Kobia, M., & Katwalo, A. M. (2013). Micro, Small and Medium Enterprise Growth and Innovation in Kenya: A Case Study on the Women Enterprise Fund. ICBE-RF Research Report No. 47/13, Dakar: Trust Africa/IDRC.
[17]
Mazzucchelli, T. G., & Purcell, E. (2015). Psychological and Environmental Correlates of Well-Being among Undergraduate University Students. Psychology of Well-Being, 5, Article No. 6. https://doi.org/10.1186/s13612-015-0033-z
[18]
Mgbebu, E. S., & Achike, I. A. (2017). Analysis of Loan Acquisition and Repayment among Small Scale Rice Farmers in Ebonyi State, Nigeria: The Implication for Effective Credit Delivery. IOSR Journal of Economics and Finance (IOSR-JEF), 8, 20-26. https://doi.org/10.9790/5933-0803012026
[19]
Mole, S. A., & Namusonge, G. S. (2016). Factors Affecting Access to Credit by Small and Medium Enterprises: A Case of Kitale Town. The International Journal of Social Sciences and Humanities Invention, 3, 2904-2917. https://doi.org/10.18535/ijsshi/v3i10.12
[20]
Mwobobia, F. M. (2012). The Challenges Facing Small-Scale Women Entrepreneurs: A Case of Kenya. International Journal of Business Administration, 3, 112-121. https://doi.org/10.5430/ijba.v3n2p112
[21]
Nmadu, J. N., Bako, A. N., & Baba, K. M. (2013). Micro-Credit Requirement, Acquisition and Repayment by Vegetable Farmers in Niger State, Nigeria. IJTEMTII, 6, 34-39. http://www.ijtemt.org
[22]
Nwafor, G. O., Agu, A. F., Anigbogu, T., & Umebali, E. E. (2018). Loan Repayment Behaviour among the Member of Farmers’ Multipurpose Cooperatives Societies in Anambra State. International Journal of Community and Cooperative Studies, 6, 28-49.
[23]
Oishi, S., & Schimmack, U. (2010). Culture and Well-Being: A New Inquiry into the Psychological Wealth of Nations. Perspectives on Psychological Science, 5, 463-471. https://doi.org/10.1177/1745691610375561
[24]
Rathiranee, Y. (2017). Microfinance Interventions and Empowerment of Women Entrepreneurs in Sri Lanka. International Journal of Social Science and Technology, 2, 51-66.
[25]
Ryff, C. D. (1989). Happiness Is Everything, or Is It? Explorations on the Meaning of Psychological Well-Being. Journal of Personality and Social Psychology, 57, 1069-1081. https://doi.org/10.1037/0022-3514.57.6.1069
[26]
Ryff, C. D., & Singer, B. (1996). Psychological Well-Being: Meaning, Measurement, and Implications for Psychotherapy Research. Psychotherapy and Psychosomatics, 65, 14-23. https://doi.org/10.1159/000289026
[27]
Ryff, C. D., & Singer, B. H. (2006). Best News Yet on the Six-Factor Model of Well-Being. Social Science Research, 35, 1103-1119. https://doi.org/10.1016/j.ssresearch.2006.01.002
[28]
Sambu, C. C. (2013). Impact of Women Participation in Self-Help Groups on Self Economic Empowerment in Nakuru County. Interdisciplinary Journal of Contemporary Research in Business, 5, 382-405.
[29]
Siekei, J., Wagoki, J., & Kalio, A. (2013). An Assessment of the Role of Financial Literacy on the Performance of Small and Micro Enterprises: Case of Equity Group Foundation Training Program on SMEs in Njoro District, Kenya. Business & Applied Sciences, 1, 250-271.
[30]
Springer, K. W., & Hauser, R. M. (2006). An Assessment of the Construct Validity of Ryff’s Scales of Psychological Well-Being: The Method, Mode, and Measurement Effects. Social Science Research, 35, 1080-1102. https://doi.org/10.1016/j.ssresearch.2005.07.004
[31]
Steel, P., Schmidt, J., & Shultz, J. (2008). Refining the Relationship between Personality and Subjective Well-Being. Psychological Bulletin, 134, 138-161. https://doi.org/10.1037/0033-2909.134.1.138
[32]
The Republic of Kenya (2007). Kenya Vision 2030: Economic, Social and Political Pillars. Nairobi: The National Economic and Social Council of Kenya (NESC), Office of the President.
[33]
WEF Women Enterprise Fund (2011). Women Enterprise Fund Recruits More Financial Intermediary Partners. Nairobi: WEF.
[34]
WEF Women Enterprise Fund (2015). Public Accountability Statement. Nairobi: WEF.
[35]
WEF Women Enterprise Fund (2016). WEF Financial Report, Njoro. Njoro: WEF.
[36]
World Bank (2008). The World Bank Annual Report 2008: Year in Review. Washington DC: World Bank. https://doi.org/10.1596/978-0-8213-7675-1
[37]
World Bank (2009). Financial Access 2009. Measuring Access to Financial Services around the World. Consultative Group to Assist the Poor/Washington DC: The World Bank.
[38]
World Health Organization (WHO) (2001). The World Health Report-Mental Health: New Understanding, New Hope. Geneva: World Health Organization.
[39]
Xiang, Z., Tan, S., Kang, Q., Zhang, B., & Zhu, L. (2019). Longitudinal Effects of Examination Stress on Psychological Wellbeing and a Possible Mediating Role of Self-Esteem in Chinese High School Students. Journal of Happiness Studies, 20, 283-305. https://doi.org/10.1007/s10902-017-9948-9
