Browsing by Author "Kiplagat, Denis Kiprop"

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    The Firm Characteristics and Financial Performance of Businesses Funded By Youth Enterprise Development Fund in Baringo Constituency, Baringo County, Kenya
    (Kenyatta University, 2025-11) Kiplagat, Denis Kiprop
    Unemployment continues to be a major challenge at global, regional, and local levels, prompting governments and development organizations to implement interventions aimed at creating income-generating opportunities. One such intervention in Kenya is the Youth Enterprise Development Fund, which was established to provide financial resources to young entrepreneurs at affordable terms and to encourage them to create employment rather than remain job seekers. Despite these efforts, the performance of youth-owned small and medium-sized enterprises remains below expectations, with many businesses struggling to sustain operations and generate profits. Baringo Constituency in Baringo County is one of the areas where young entrepreneurs access this fund to establish and expand their businesses. This study sought to investigate the impact of firm characteristics on the financial performance of youth-funded enterprises in Baringo Constituency. Specifically, the study examined how firm age, ownership structure, source of finance, firm size, and business sector influence financial outcomes. The study was guided by financial management theory, agency theory, capital structure theory, and pecking order theory, which explain how resource allocation, ownership control, and financing decisions affect business profitability and sustainability. A descriptive research design was adopted, while a random sampling technique was used to select a sample of 83 respondents from a target population of 104 youth entrepreneurs. Primary data were collected using self-administered questionnaires, which were tested for validity and reliability using Cronbach’s alpha and validity ratios. Data diagnostics included normality, linearity, multivariate assumptions, heteroscedasticity, and autocorrelation tests. Data analysis was conducted using descriptive and inferential statistics, with results presented through tables and graphs. The findings revealed a positive relationship between financial resources, firm age, ownership structure, firm size, and business sector, and the financial performance of youth enterprises in Baringo Constituency. Financial resources and effective ownership structures had the most significant influence on performance, highlighting the importance of adequate funding and structured management in achieving profitability. Firm age showed a moderate positive effect, while firm size and business sector had significant but less pronounced effects. These results suggest that youth entrepreneurs should prioritize financial planning, adopt optimal ownership structures, and focus on operational efficiency to improve performance. The study recommends that further research should explore the impact of firm characteristics on financial performance across other constituencies in Baringo County and in similar local contexts, to provide broader insights into the sustainability of youth-funded enterprises.