An Assessment of the Factors Influencing Constituency Youth Enterprise Fund Programme in Promoting the Growth of Micro and Small Enterprises in Webuye Constituency, Bungoma County
Nabangala, Mukhwana Delephine
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Access to credit has been considered as one of the main problems that MSEs have to deal with in order to survive and keep growing. An appropriate combination of access to credit, credit conditions, and adequate fmancial and operational policies, is the only way to deal with the complex problem of MSEs survival and growth. Provision of efficient financial services, especially by micro fmancial institutions has been noted in developing countries to stimulate productivity and poverty reduction through increase in enterprise productivity, net income and employment. The Constituency Youth Enterprise Fund (CYEF) was introduced in Kenya in 2007 with an aim of improving the productivity of the youth enterprises, raise their level of income and create employment opportunities for MSEs. This was expected to increase the number of the youths employed, level of investments, profit and the enterprise output. However, with most MSEs using C-YEF products, there are still high levels of poverty and unemployment in Webuye Constituency. Many MSEs have closed down even after receiving/benefiting from the Constituency Youth Enterprise Fund. This study therefore, aimed at establishing the factors influencing Constituency Youth Enterprise Fund Programme in promoting the growth ofMSEs in Webuye Constituency, Bungoma, county. This study adopted a descriptive research design. The target population for this study included all the beneficiaries of C-YEF in Webuye Constituency where a questionnaire was used to collect primary data. Available secondary data from books, journals or annual reports was used. The data was analyzed using SPSS whereby both qualitative and quantitative techniques were utilized. Data analysis involved reducing accumulated data to a manageable size, developing summaries, looking for patterns and applying statistical techniques. Both descriptive statistics such as tabulation, frequencies and percentages as well as inferential statistics such as chi-square, ANaVA and Correlation analysis were utilized. The data was presented through the use of frequency distribution tables, percentages, bar charts and pie charts. The study found out that the highest size of the loan ever awarded to most businesses was less than Ksh 50,000 which was relatively low for business expansion. This amount was inadequate hence not sufficient to effectively progress the businesses forward. The study recommends that the government through the concerned ministries to increase theallocation to the youth enterprise fund. This will ensure the amount allocated to the MSEs by the C-YEF is increase to achieve fast business growth.