Impact of Youth Enterprise Development Fund on Performance of Small Scale Improved Indigenous Chicken Enterprises in Siaya County, Kenya
Loading...
Date
2022-06
Authors
Mango, Sarah Laura
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Microfinance entails providing financial services and the management of money
through a range of products and a system of support functions targeting low-income
clients. Their primary objective is to provide an opportunity for their clients to access
finances for investment in income-generating activities especially micro, small, and
medium enterprises, for employment creation. The Youth Enterprise Development
Fund (YEDF) is one of the most significant strategies established by the Kenyan
Government to provide solutions that help create employment opportunities for young
people through enterprise development. Sixty per cent of Kenyan youth are rural-based,
meaning their livelihood and employment opportunities are mainly in agriculture.
Poultry production, which constitutes 30% of the Agricultural Gross Domestic Product
(GDP), is a high potential agribusiness value chain practiced by several youths who are
entrepreneurship enthusiasts and have a drive to create employment for themselves and
other young people. At the onset of the fund’s services in the study area, 16 % of the
beneficiaries invested the YEDF credit in poultry enterprises, but the impacts of the
investment on the performance of the enterprise remains unknown. The aim of this
research was to map out the impact of YEDF use on small scale improved indigenous
chicken (IIC) enterprise performance. The study aimed at determining the factors
influencing the use of YEDF credit by small scale farmers in IIC enterprises, to assess
the level of use of improved management techniques in the improved indigenous
chicken enterprises, and to analyse the impact of YEDF credit use in improved
indigenous chicken enterprise income. A systematic sampling technique was employed
to obtain study participants from all the wards in Gem Sub-County. Semi-structured
questionnaires were used to collect primary data. Descriptive statistics were used to
assess the level of use of management practices in IIC enterprises. The probit regression
model was then employed to investigate factors influencing YEDF credit use in IIC
enterprises. The impact of YEDF credit use on IIC enterprise income was then analysed
using Propensity Score Matching. The outcomes of the analysis revealed that age group;
source of income, farm size (hectares), and role in the enterprise had an influence on
the use of YEDF in IIC enterprise at a 5% level of significance. It also revealed a
significant correlation between use of YEDF and disease control and chick management
practices in IIC enterprises. Farmers were found not to implement the full package of
improved management practices. However, the use of YEDF credit in IIC enterprise
had a statistically significant impact on enterprise income at a 5% level of significance.
The study recommends development of innovative agribusiness credit packages that
take into account the age and cushions risks for young farmers to enhance agribusiness
enterprise development. It also recommends enhanced competence-based skills
development to increase uptake of management practices among young agribusiness
entrepreneurs. The study concludes that credit access has positive significant effect on
agribusiness enterprises in Improved Indigenous chicken value chain
Description
A Thesis Submitted to School of Agriculture and Enterprise Development in Partial Fulfilment of the Requirement for Master of Science Degree in Agribusiness Management and Trade of Kenyatta University, June 2022.
Keywords
Youth Enterprise Development Fund, Small Scale Improved Indigenous Chicken Enterprises, Siaya County, Kenya