Youth Enterprise Development Fund Loans and Growth of Youth Owned Enterprises in Mumias West Sub County, Kakamega County, Kenya
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Date
2023
Authors
Adoli, Emmanuel
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Mumias West Sub County has been recording the lowest revenue growth among youth
enterprises in the sub counties of Kakamega County since 2017. Slow growth of youth
enterprises led to the formation of The Youth Enterprise Development Fund (YEDF), to
enable growth of enterprises owned by youth. This study, sought to determine the extent
to which YEDF loans have affected youth enterprises in Mumias West Sub county. The
general objective of this study was to establish the effect of the YEDF loans and growth of
youth owned enterprises in Mumias West sub county, Kenya. Specifically, the study
focused on the effect of provision of bid bond financing, Local Service Order/Local
Purchase Order (LSO/LPO) financing, Business expansion loans and agribusiness loans
provided by the YEDF; and the growth of youth owned enterprises in Mumias West Sub
County. The target population were the 612 youth enterprises in Mumias West Sub County.
The sample size were 242 youth enterprises obtained using simple random sampling
through the Yamane formula. The study relied on the imperfect information theory and the
pecking order theory. Primary data was collected using questionnaires. Secondary data was
obtained by analysing government records, public records and business journals.
Qualitative and quantitative data analysis was accomplished by inferential and descriptive
statistics. SPSS was used to analyze the data. Ethical considerations were factored in the
study. The researcher conducted an Analysis of Variance (ANOVA). Data analyzed was
presented using tables and figures. From the analysis of findings, the coefficient of
determination as measured by the adjusted R-square showed that the predictor variables
explain sixty nine point six percent of the total variation in the growth of youth owned
enterprises in Mumias West Sub County. The study concluded that bid bond financing,
LPO/LSO financing, business expansion loans and agribusiness loans have a significant
effect on the growth of youth owned enterprises in Mumias West Sub County. Access to
credit is a major obstacle to young entrepreneurs who lack collateral. YEDF lending has
an influence on the performance of Youth-run Businesses. The study recommended that
the Youth Enterprise Fund management should come up with structures to ensure training
that incorporates technical, as well as entrepreneurial skills. To augment this study, it is
recommended that other studies be conducted to establish more factors that affect the
growth of small and medium enterprises in other counties.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Award of Degree in Master of Business Administration (Finance) of Kenyatta University, June 2023.
Keywords
Youth Enterprise Development Fund Loans, Growth of Youth Owned Enterprises, Mumias West Sub County, Kakamega County, Kenya