Financial Management Skills and Utilization of Youth Enterprise Development Fund among Youth Groups in Baringo South Constituency, Kenya
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Date
2023
Authors
Cheburet, Alex
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta university
Abstract
The Youth Enterprise Development Fund (YEDF) was established by an Act of
Parliament in 2006 as a strategy to broaden economic opportunities and promote
youth participation in building the nation. The effective utilization of the fund is vital
if its objective of empowering young people through entrepreneurship. This study
aimed to evaluate the relationship between financial management skills and the
utilization of business development funding among youth enterprises in Baringo
South Constituency. The study specifically sought to determine the relationship
between investment decision making process, financial record management, saving
behavior and cash flow management and the utilization pf the YEDF in Baringo South
Constituency, Baringo County, Kenya. Financial self-efficacy theory, goal setting
theory, contingency theory and information asymmetry theory formed theoretical
basis for this research. Researched entities was 22 YEDF-funded MSEs in Baringo
South Constituency's. The study’s sample size was made up of 88 group officials, four
fund managers and three youth fund officials. Questionnaires were used in the
collection of primary data. Prior to the study, a pilot was conducted in Koibatek to test
data gathering devices. Research data was collected qualitatively and quantitatively.
Data was presented using tables and charts. The data analysis was conducted using the
Statistical Package for the Social Sciences (SPSS). The measures of central tendency
were done by finding the means and standard deviation the data sets. The study used
correlational and regression analysis to compute the correlation between the study
variables. The study established a positive and significant relationship between the
three independent variables: investment decision making, financial record
management and saving behavior, and YEDF utilization among youth groups in
Baringo South Constituency, Kenya. It also found a weak positive and significant
relationship between cash flow management and YEDF utilization among youth
groups in Baringo South Constituency, Kenya. The study recommended that
entrepreneurial training for youth enterprises, and distinct saving accounts to assist
youth groups organize their finances. It also emphasized on the importance of cash
flow statements to help investors and shareholders understand how much money
group is producing and spending. The study suggested that further studies should be
conducted on financial management skills and use of government financial kits such
Uwezo funds, Women Enterprise Development funds should be conducted.
Description
A Research Project Submitted to the School of Business,
Kenyatta University in Partial Fulfilment for the Award
Of Degree in Master of Business Administration (Finance
Option) of Kenyatta University
Keywords
Financial Management, Youth Enterprise Development Fund, Youth Groups, Baringo South Constituency, Kenya