YOUTH ENTERPRISE DEVELOPMENT FUND LOANS AND GROWTH OF YOUTH OWNED ENTERPRISES IN MUMIAS WEST SUB COUNTY, KAKAMEGA COUNTY, KENYA
Abstract
Mumias West Sub County has been recording the lowest revenue growth among youth enterprises in the sub counties of Kakamega County since 2017. The Youth Enterprise Development Fund (YEDF) was initiated with a view of enabling 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. 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.
Key Words: Youth Funding, Bid Bond Financing, Local Service Order, Business Loans, Agribusiness Loans
CITATION: Adoli, E., & Koori, J. (2023). Youth enterprise development fund loans and growth of youth owned enterprises in Mumias West Sub County, Kakamega County, Kenya. The Strategic Journal of Business & Change Management, 10 (2), 1171 – 1188.
Full Text:
PDFReferences
Abor, J., & Quartey, P. (2010). Issues in SME Development in Ghana and South Africa. International Research Journal of Finance and Ethics, 7(12), 45-52.
Akwalu, P. (2014). Factors influencing performance of youth owned small and medium enterprises. A case of Maara sub-county; Tharaka-nithi county; Kenya. Retrieved from Retrieved from http://hdl.handle.net/11295/73951
Asetto, F. (2014). Effect of table banking on investment decisions of small and mediumenterprises in. University of Nairobi, MBA.
Fleisig, H. W., Safavian, M., & Pena, N. (2006). Reforming Collateral Laws to Expand Access to finance. Washinton DC.: World Bank.
Hussein, M. H. (2017). The Relationship Between Credit Accessibility and Growth of Small and Micro Enterprises in Langata Constituency. Nairobi.
Irungu, J., & Kamau, R. (2015). Effect of Youth Enterprise Development Fund on Growth of New Enterprises in Kenya: A Survey of Selected Youth Enterprises in Mathioya District. European Journal of Business and Management, 55-64.
Kaburi, S. N., Mobegi, V. O., Kombo, A., Omari, A., & Sewe, T. (2012). Entrepreneurship Challenges in Developing Economies: a case of Kenyan Economy. International Journal of Arts and Commerce 1 (4), 264-274.
Kakamega County. (2020). Kakamega County Revenue. Kakamega: Kakamega County Revenue Agency.
Kilele, A. K., Nduruhu, D., & Kimani, M. (2015, October). Determinants of group loans uptake at the youth enterprise development fund. A survey of Nakuru West constituency, Kenya. International Journal of Economics, Commerce and Management, III (10), 820-835.
Kimando, L. N., Njogu, G. W., & Kihoro, J. M. (2012, June). Factors Affecting the Success of Youth Enterprise Development Funded Projects in Kenya; A Survey of Kigumo District Muranga County. International Journal of Business and Commerce, 1(10), 61-81. Retrieved from www.ijbcnet.com
Kimathi, J. (2017). Asset-based financing solutions and the growth of manufacturing (SME) in Nairobi County, Kenya. Nairobi.
Kinyua, A. (2014). Factors Affecting the Performance of Small and Medium Enterprises in the Jua Kali Sector in Nakuru Town, Kenya. Journal of Business and Management, 16, (1), 80-93.
KNBS (a). (2019). Kenya Population and Housing Census (Vols. Volume IV: Distribution of Population by Socio-Economic Characteristics). Nairobi: Kenya National Bureau of Statistics.
KNBS (b). (2019). 2019 Kenya population and housing Census (Vol. Volume III: Distribution of Pupulation by Age and Sex). Nairobi: Kenya National Bureau of Statistics.
KNBS. (2016). The 2016 National Micro, Small and Medium Establishment (MSME) Survey. Nairobi: Kenya National Bureau of Statistics.
KNBS. (2020). Kenya National Bureau of Statistics Economic Survey. Nairobi, Kenya: Kenya National Bureau of Statistics.
Kombo, D. K., & Tromp, D. L. (2011). Proposal and thesis writing: An Introduction. Nairobi: Paulines Africa.
Maritim, J. D. (2019). Effectiveness of Youth Enterprise Development Fund implementation on youth programmes in Nairobi County. Unpublished research dissertation, Strathmore University.
Mirmahdi, D., & Wan, K. W. (2012, November 23). Advanced Manufacturing Technology Adoption in SMEs: An Integrative Model. Journal of Technology Management & Innovation, 7(4). Retrieved from http://www.jotmi.org
Mumin, A. A. (2018). Factors affecting SME's access to finance from commercial banks in Kenya: A case of Nairobi County. Nairobi: United States International University – Africa.
Musera, A. D. (2015). Factors affecting the success of Kenya Youth Enterprise Development funded projects in Kenya: A survey of Langata constituency, Nairobi County. Nairobi: Unpublished research project, United States International University Africa.
Myers, C. S., & Majluf, S. N. (1984). Corporate Financing and investment decsions when firms have information the investors do not have. NBER Working Paper No. 1396, National Bureau of Economic Research, Cambridge, MA 02138.
Ndigah, P. G., Thlaine, K., & Lyria, R. K. (2015). Influence of startup loans from youth enterprise development fund on growth of youth enterprises in Maara constituency, Kenya. International Journal of Economics, Commerce and Management, 816-829.
Ober, H. (2012). Guidance for designing monitoring and evaluation peace building projects. Using theories of change.
Oke, A. E., Adeyemo, O. O., & Toriola, G. E. (2016). EFFECT OF RISKS ASSOCIATED WITH BONDS AND GUARANTEES ON CONSTRUCTION PROJECTS. Infrastructure as a driver for economic growth and integration in African: what is the way forward? 278-286.
Oke, A. E., Ogunsemi, D. R., Aje, I. O., & Ogundimu, A. F. (2013). EFFECT OF BID BOND ON CONSTRUCTION PROJECT PERFORMANCE IN NIGERIA. WEST AFRICA BUILT ENVIRONMENT RESEARCH (WABER) CONFERENCE (pp. 407-418). British Council, Accra, Ghana: WEST AFRICA BUILT ENVIRONMENT RESEARCH (WABER) CONFERENCE.
Opiyo, S. A., Kivuva, J., & Onyancha, D. (2015, June 27). The contribution of youth enterprise development fund on youth empowerment in Kangundo constituency, Machakos county. The Strategic Journal of Business & Change Management, 2(55), 192-249.
Osoro, K., & Muturi, W. (2016). The role of micro financial institutions on the growth of SMEs in Kenya: A case study of micro financial institutions in Kisi Town. IOSR Journal of Humanities and Social Science (IOSR-JHSS), 16(Issue 1 (Sep.-Oct.2013)). Retrieved from www.iosrjournals.org/ccount/click.php?id=7779!smes
Pandula, G. (2011). An empirical investigation of small and medium enterprises’ access to bank finance: The case of an emerging economy. ASBBS Annual Conference, 18(1), (p. 18).
Quianoo, K. T. (2011). Examining the impact of loans on SMEs in Ghana. Kwame Nkurumah University of Science and Technology., Institute of Distance Learning. Retrieved from dspace.knust.edu.gh:8080/jspui/bitstream/---/TRISHA%20 Quianoo.pdf!
Rori, A., Bunei, J., & Mwenzwa, E. (2011). Revitalizing youth entrepreneurship in Kenya: A Deliberate Training Curriculum. International Journal of current research 3 (10), 121-125.
Sambo, W. (2016). Factors affecting youth entrepreneurship development in Kibera district, Kenya. South Africa: Problems and Perspectives in Management.
Saunders, M., Lewis, P., & Thornhill, A. (2012). Research Methods for Business Students (6 ed.). Harlow: Pearson Education.
Vo, T. T., Tran, V. D., & Trinh, D. C. (2011). Small and medium enterprises access to finance in Vietnam. small and medium enterprises (SMEs) access to finance in selected East Asian Economies, 151-192.
DOI: http://dx.doi.org/10.61426/sjbcm.v10i2.2661
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.