Tough times as small traders slow down on credit advances

Three in 10 enterprise owners whose business was reported shut went out for financial assistance from friends and family as they did not intend to accumulate more debt. [iStockphoto]

Lack of working capital is the main reason why small business owners are closing shop, according to a recent survey.

The Central Bank of Kenya (CBK) survey also notes that these traders are slowly becoming reluctant to sell their products on credit, a factor that could be behind the lack of working capital, hence closing shop.