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
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Date
2013-08-24
Authors
Nabangala, Mukhwana Delephine
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Abstract
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.
Description
HD 2346 .K4M810