Abstract
The study aimed at assessing the influence of Access to credit as provided by Youth Enterprises Development Fund (YEDF) on the growth of entrepreneurial youth group-based enterprises and moderating effect of group dynamics on the relationship between access to credit and the growth of entrepreneurial youth group-based enterprises. A cross-sectional survey research design was adopted and it used both quantitative and qualitative data. The accessible population comprised group leaders and Youth development Officers. This study employed stratified random sampling on a population of 255 subjects and a sample size was 156 group leaders out of which 121(77%) questionnaires were returned. The statistical package for social sciences (SPSS) version 21 was used to analyze data. YEDF is a government fund initiative with a nationwide presence in Kenya with Nairobi County as the smallest, most populous, has the highest uptake of the YEDF loans amounting to 2.3 billion, and has the highest loan repayment rate of 48%. The analysis of data revealed that access to credit was significant in explaining the growth of entrepreneurial youth group-based enterprises in Nairobi County. Access to credit had an R of 0.222 and contributed only 4.9% to the growth of entrepreneurial youth group-based enterprise. The study established that when group dynamics was introduced the model remained significant and R improved from 0.222 to 0.390. The study concludes that Access to credit significantly influences the growth of Entrepreneurial youth group-based enterprises in Nairobi county while group dynamics have a predictive effect but has no moderating effect.
Highlights
Credit is the capacity to borrow advanced by an institution, or a person to another organization or individual, It takes the form of cash or trade
Age wise majority of the respondents were 30-35 years at 52.9% while those between 25-29 were at 25.4%, 19-24 were at 11.6 % while the least was the bracket of those aged below 18 years at 9 %
Majority got between Ksh50,000 and 250,000 which stood at 68.6%, those who received 250,001 to 450,000 were 8.26%, those who received 450,001 and 650,000 were 4.96% while those who received between 650,001 and 850,000 were 6.61% and those receiving above 850,000 were 11.57% of the respondents The study found out that 66.94% of the loans were given at 0-2.5% interest while 14.05 % accessed the loan at 2.5-5% and those who got at between 5.1- 7.5 % were 12.4% while those who got at above 7.5% were 6.61%
Summary
Credit is the capacity to borrow advanced by an institution, or a person to another organization or individual, It takes the form of cash or trade. Studies have shown that youth enterprises’ growth to be a function of the individual’s entrepreneurial desire and environmental conduciveness to youth entrepreneurship activities (Mwasalwiba & Wakkee, 2012) This implies Youth enterprises growth largely depends on youth’s ability to carry out the necessary entrepreneurial functions and tasks such as funding. Scholars have compared youth enterprises’ growth and environmental relationship with that of a seed-soil relationship, with the seed being the youth enterprises growth and the soil being the environment in which the seed is bred This implies emergence and growth of youth enterprises’ is dependent on the appropriateness of the breeding environment especially the economic environment (Mwasalwiba, Dahles & Wakkee, 2012; Bwisa (2011); UNCTAD (2012); Rengiah, (2016)
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