I would agree with Phil that this is not the best way to split a string. I would go one step further and suggest that you have a function called Usp_split_words but it only sort of splits them. You added a bunch of other stuff to it to. If you want to learn how to split strings using t-sql follow the link in my signature about splitting strings.

From the code you posted it looks like all you are trying to do is allow the data to be inserted if there are no spaces. There is no need to split this and there is no need to loop. The following code will do that with little effort:

declare @word varchar(125) = 'The Quick Brown Fox Jumps over a lazy Dog'

if LEN(@word) = LEN(replace(@word, ' ', ''))

Print 'Word inserted will be ' + @word

--Insert into Word_entry values (@word)

else

Print 'sorry you entered blank spaces can not insert record'