Introduction
The growth of the Small and Medium Enterprises ar due to the influences of the competition in the domain of the local anesthetic markets. The actions of the entrepreneurs in the issues of growth and expansion ar divided into cardinal opposing views. Many of the entrepreneurs argon challenged in the different situations and the others be in the state of anxiety that definitely creates an regard on their businesses.
Background of the Study and Problem Statement
The small and medium size enterprises clearly played an important role in the economies of their country. The SMEs are considered as one of the important sectors that drive in the stinting growth. Therefore, many policy makers and economists set strong foundations of efficient electronic network of the SMEs in their aim for the industrialization. The entrepreneurs and their behavior in managing their respective firms are expected to be resilient in providing the answers against the tint of the spheric economic uncertainties.
Based on the background of the study, there are two problems identified.
·        What are the sources of fund of SMEs aside from the banks?
·        What is the impact of these sources in the profitability of the businesses?
Research Aims and Objectives
The aim of the study is to investigate the impact of non banking sources in the profitability of small and medium enterprises in Kenya. In order to administer the investigation of the study; there are objectives wherein the researcher/s can be focused on. original is to recognize the sources of funds of SMEs in Kenya. Second is to determine the entrepreneurial behaviors in the decision making, planning, and the control of the SMEs. Third is to determine the impact of these sources in the growth of SME in the country. And fourth is to give recommendations in order to strengthen the SMEs in Kenya.
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