Youth Enterprise Development Fund Research Articles

Influence of Government Sponsored Enterprise Funds-Credit Services on the Growth of Group-Based Micro and Small Enterprises in Kenya

The purpose of this study was to analyse the influence of Government Sponsored Enterprise credit services on the growth of group-based Micro and Small Enterprises in Kenya. The study was anchored on Resource based theory and Entrepreneurial orientation theory. A concurrent triangulation mixed methodology design was adopted for this study. The target population comprised of 51 officers from Government Sponsored Enterprise Funds and 600 group leaders of group based Micro and small Enterprises who are beneficiaries of Youth Enterprise Development Fund, Women Enterprise Funds and Uwezo Fund in Nairobi County since 2013. The study used proportionate stratified random sampling for the group based enterprises and census for Government Sponsored Enterprise Funds officers. The study Sample size of 240 leaders of group based enterprises was calculated using Yamanes formula and a census of 51 officers of Government Sponsored Enterprise Funds. The study collected primary data using questionnaires and interviews. The study used both qualitative and quantitative statistics. Qualitative data was analyzed thematically along the study objectives and presented in narrative and verbatim form while quantitative data was analyzed using descriptive and inferential statistics. The descriptive analysis included mean, frequencies, percentages and standard deviation while the inferential analysis undertaken was simple linear regression to establish the relationship between credit services and the growth of Micro Small Enterprises. It also assessed the mediating role of group characteristics on the relationship between credit services and the growth of Micro and Small Enterprises in Kenya. Quantitative data was presented using tables. The study found that credit services have a significant influence on the growth of group-based MSEs in Nairobi County, Kenya. Group characteristics partially mediate the relationship between credit services and MSE growth. The study recommends increasing funding limits, empowering group leaders, aligning fund requirements with group-owned enterprises, and developing policies that recognize their unique needs.

Factors Affecting Utilization of the Youth Enterprise Development Fund and the Performance of Micro and Small Enterprises in Belgut Constituency, Kenya

Factors Affecting Utilization of the Youth Enterprise Development Fund and the Performance of Micro and Small Enterprises in Belgut Constituency, Kenya

Factors Affecting Utilization of the Youth Enterprise Development Fund and the Performance of Micro and Small Enterprises in Belgut Constituency, Kenya

Factors Affecting Utilization of the Youth Enterprise Development Fund and the Performance of Micro and Small Enterprises in Belgut Constituency, Kenya

Assessing Association between Youth Enterprise Development Fund (YEDF) Initiative and Alcohol Abuse among Youth in Murang’a County, Kenya

Introduction: Alcohol abuse and its associated disorders have been a public health challenge, especially among youth resulting in serious psycho-social- economic problems worldwide. The objective of this study was to assess the association between the Youth Enterprise Development Fund initiative and alcohol abuse among youth in Murang’a County, Kenya.
 Method and Materials: This was a comparative cross-sectional study design with the application of both quantitative and qualitative data collection methods carried out in 2019. A sample size of 141 YEDF beneficiaries and 141 non-beneficiaries was determined. The systematic sampling method was applied in selecting YEDF beneficiaries with a random start. YEDF beneficiary participants identified non-beneficiaries using non-relative matching peers. The Alcohol Use Disorders Identification Test (AUDIT) was administered through a questionnaire while Focus Group Discussions (FGDs) and In-Depth Interviews were applied in qualitative data collection. Quantitative data analysis was carried out using IBM SPSS version 22 and a p-value of < 0.05 was considered significant while Manual thematic analysis was applied to the analysis of qualitative data.
 Results: The prevalence of alcohol use was 21.3% while the prevalence of alcohol abuse among study participants was 7.4% with a significantly higher percentage in YEDF beneficiaries (10.6%) compared to non-YEDF beneficiaries (4.2%), (p=0.041). Among those who were consuming alcohol, 34.9% of YEDF beneficiaries and35.3%of YEDF nonbeneficiaries were alcohol abusers (p=0.976) with no statistically significant difference. Qualitatively, the study indicated that alcohol abuse among youth has significantly decreased since the YEDF initiative was introduced among the youth.
 Conclusion: The study concludes that alcohol abuse among youth has significantly dropped since the YEDF initiative. According to the participants, the small-scale enterprises put up by the funds beneficiaries have contributed to this decrease. For a better outcome, there is an urgent need to step up awareness and sensitization of the YEDF initiative since most youths within the lower age bracket were not aware of the loan funds as well as more input in training the youth in matters regarding business planning and management.

Financial Management Skills and Utilization of Youth Enterprise Development Fund among Youth Groups in Baringo South Constituency, Kenya

The Youth Enterprise Development Fund (YEDF) was introduced in 2006 as a strategy to broaden economic opportunities and promote youth participation in nation building. The effective utilization of the fund is vital if its objective of empowering young people through entrepreneurship. This study aimed to evaluate the correlation between financial management skills and the utilization of business development fund among youth groups 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 of 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 Statistical Package for the Social Sciences (SPSS) was used in the quantitative statistical analysis. The mean, standard deviation, frequencies, and percentages are used in descriptive. 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. The study 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. Keywords: Financial management skills, investment decision, financial records, saving behavior, cash flow, fund utilization.

Effect of the Structure & Implementation Framework of Youth Enterprise Development Fund on it’s Uptake among the Youth in Bungoma County

Youth unemployment remains a pressing global issue, with young people finding it difficult to access formal labor markets. ILO reports indicate that an estimated 75 million youths aged 15 to 24 actively seek work but cannot find it. This study aimed to examine the determinants of the uptake of the Youth Enterprise Development Fund among youth groups in Bungoma County. The explanatory and explorative research design was employed with a target of 133,000 youths in Bungoma County. The research employed a targeted sampling method, and 290 respondents were selected to participate. Data collection was through questionnaires and focus group discussions, while secondary data was obtained from officers at the YEDF and books. Both qualitative and quantitative data were collected and subjected to descriptive and inferential statistical analysis. Data was presented and interpreted using tables and charts according to the set research objectives. Despite the fund being poised as a great policy initiative to address perennial youth unemployment, lack of clear eligibility criteria, long waiting time and application process, lack of stakeholder support, low levels of organizational development, corruption, lack of awareness, and insufficient training have caused low uptake of Youth Enterprise Development Fund.

Influence of Strategy Formulation on Performance of Youth Enterprise Development Fund in Nairobi County

The study sought to establish the influence of strategy formulation on the performance of youth enterprise funds in Nairobi County. The study was a descriptive survey. The population of the study was 114 officers at the organization’s headquarters in Nairobi. Census sampling was applied. The study collected data using a questionnaire that was administered physically, through drop and pick method. Data collected was analyzed through descriptive and inferential analysis. Descriptive statistics included mean, frequency, percentage, and standard deviation whereas inferential analysis was through simple linear regression analysis. The findings of the study revealed a positive and significant relationship between strategy formulation and the performance of youth enterprise development fund (β= 0.775, p-value= 0.001<0.05). The study recommended that leadership formulate clear vision and mission statements that can be understood and are aligned with overall organizational strategy to enhance performance.

Effect of Economic Factors on Access to Youth Enterprise Development Fund by Youth Groups in Migori County, Kenya

Purpose: The purpose of this study was to investigate the effect of economic factors on access to YEDF on access to youth enterprise development fund (YEDF) by youth groups in Migori County, Kenya.
 Methodology: This study used descriptive research design. It targeted all the 293 registered youth groups and 8 representatives of Youth Enterprise Development Fund in Migori County. The 293 respondents were sampled to 169 youth groups using Yamane formula. The 8 representatives of Youth Enterprise Development Fund were not sampled. This gave rise to 177 respondents (169 youth group leaders and 8 representatives of Youth Enterprise Development Fund. Questionnaire and interview schedule assisted in gathering primary data. Secondary data on YEDF disbursed to successful applicants were collected by a data collection form.
 Results: The results revealed that economic factors (income status and business support services) and access to Youth Entreprise Development funds have a positive and significant association (r=0.625**, p=0.000). The study made the conclusion that there is a significant relationship between economic factors and access to YEDF in Migori County.
 Unique contributions to theory, policy and practice: The YEDF should identify the risk factors connected with each loan transaction. Proper loan conditions should be put in place to control risk associated with the loans advanced to the youth. Therefore, by strengthening the loan risk by availing the information, the YEDF will empower the youth towards better decision-making ability towards the amount, the purpose and the repayment methods/time of the loans.

Impact of Public, Private and Non-Governmental Organisations’ Financial Interventions on Youth Livelihood Outcomes in Kenya

This study investigated the impact of public, private and Non-Governmental Organisations’ financial interventions on youth livelihood outcomes (YLO) in Kenya. A survey of 201 respondents randomly sampled from registered Youth Self-Help Groups in Nairobi County was conducted. Results showed that males constituted 74% and females made up 26% of the sample. The ages of the respondents ranged from 18 to 35 years. The results for livelihood outcomes indicated that 52% of the youth were at a survival level, 18% were at the security level and 30% were at the growth level of youth livelihood outcomes. Hypothesis test results further revealed that there was a relationship between the financial interventions and youth livelihood outcomes (χ2= 18.70; d.f. =7; p<0.05). Further regression results revealed three significant predictors of YLO in rank order as the public devolved funds comprised of Youth Enterprise Development Fund and Uwezo Fund (β= 0.761; p=0.009), followed by private micro-finance institutions (β=1.003; p=0.010) and finally, informal loans provided to members of Youth Self-Help Groups (β=1.037; p=0.018. The variables that were not significant predictors of YLO were Non-Profit Organisations, Faith-Based Organisations and Community-Based Organisations’ financial interventions. These findings implied that government-sponsored devolved funds had the greatest impact on youth livelihood outcomes, followed by funding by private micro-finance institutions and finally informal loans provided by the youth self-help groups to their members. This study has established that the public, private and the youth self-help groups’ financial interventions had the most significant positive impacts on youth livelihood outcomes. It was recommended that there was a need to provide more youth-targeted financial interventions by both the public and the private sectors in order to enhance youth livelihood outcomes. Furthermore, active participation by the youth in their development process is paramount for sustainable livelihoods to be achieved.

Influence of Technology Innovation Intensity on Firm Performance

The aim of this paper is to assess the effects of technology innovation intensity on firm performance. A sample of 297 businesses funded by the Youth Enterprise Development Fund in Kenya was used as study framework. Correlation and a regression model were used for content analysis. The findings show that technology innovation intensity contributes positively to firm performance, but the entrepreneur characteristic affects the firms' innovation level. Further, the results show low profitability and expansion level among micro and small enterprises. The findings provide information necessary for competitive advantages and recommends the empowerment of entrepreneurs in technology innovation trends for their firm performance. The study endeavors to discover and advance enterprise innovative strategies that are ideally anchored in the technological, organizational, and environmental frameworks. The value of this study is on the approaches of entrepreneur capability in handling technology innovation intensity within a competitive business environment to improve firm performance.

Business Support Services and Growth of Youth Owned Enterprises Benefiting From Uwezo Fund in Kitui County, Kenya

The study sought to examine the influence of business support services on growth of youth owned enterprises benefiting from Uwezo Fund in the larger Kitui County. Business growth through business support services like entrepreneurial skills and financial services has been lauded by many studies as an engine which can tap well the practical and creative business approaches affecting the youth and other disadvantaged groups. In an effort to reduce the ever-increasing high levels of unemployment and poverty amongst the youth, the Government of Kenya has since independence established many affirmative action funds like the Youth Enterprise Development Fund in order to accelerate the growth of youth owned enterprises. However, a large number of youth is still languishing in poverty and unemployment. Youth who venture into their own businesses mostly face the challenge of inadequate skills like the skill of identifying an appropriate business line of investment, poor access to credit and market access. This has become the main reason for high enterprise failure rates with up to 80 percent of new businesses collapsing within their first three years of operation. Uwezo Fund was established in the year 2013 to offer various business support services amongst the vulnerable groups and encourage enterprise growth through the provision of effective business support services like; interest free lending services, business development services, business mentorship services, market and marketing skills and Access to Government Procurement Opportunities (AGPO). The study sought to examine the influence of Uwezo Fund business support services particularly its lending services, business development services and market access on the growth of youth owned enterprises. The study was anchored on the theory of stages of development by Churchill & Lewis. The study adopted a descriptive research design. A sample of beneficiaries’ enterprises at the County level formed a study’s sample size of 100 groups, a 20% of the total 501 funded youth groups by 2016/2017 financial year, from which one enterprise in each group was selected for study. Stratified random sampling method was used in selecting the respondents. Primary data was collected using questionnaires that were self-administered. The content validity of the research instruments was checked using opinions from the experts while construct validity through consistency in both the conceptual and theoretical reviews during the questionnaire preparation. Reliability of collected data was achieved through a pilot study and a Cronbach’s Alpha, with 0.7 ranges. Descriptive and quantitative methods of study were used in data collection, data presentation and data analysis. Quantitative data was analyzed using frequency tables and percentages while qualitative data interpreted through the use of linear regressions. From the findings, all independent variables except market access through AGPO had a significant linear relationship with the dependent variable. Based on the study’s findings, the study recommends that Uwezo Fund should strengthen its business support services especially market access through AGPO and scope of business in order to positively influence the growth of youth owned enterprises. The study also recommends for a further research on the causes of ineffectiveness in market access amongst the youth enterprises. The study finally recommends for a further research on Uwezo Fund business support services which are not offered by the fund like infrastructural services, transaction processing, merging the fund with other existing business support service providers and similar studies in other counties since findings from one County is not wide enough to generalize on the influence of Uwezo Fund support services on the growth of youth owned enterprises in the whole Country.
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Does Kenya’s Youth Enterprise Development Fund Serve Young People?

This article analyses issues surrounding a state-supported self‑employment and entrepreneurship programme in Kenya, the Youth Enterprise Development Fund (YEDF). Analysis of secondary data in addition to youth interviews suggest that although the YEDF generated employment and income for some young people, the frameworks are narrow and lack supportive implementation structures. In particular, YEDF projects are marred by mismanagement of funds, corruption, and ambiguous eligibility criteria. Moreover, young people lack social networks, entrepreneurial skills and mentorship that would allow them to effectively participate in the YEDF. Inadequate support structures exclude young people from the YEDF. Future policies and programmes must consider flexible and transparent eligibility criteria, stringent accountability mechanisms to curb corruption, and development of business skills and mentorship.

An Assessment of the Motivation Component of Entrepreneurship Policy in the Youth, Women, and Uwezo Funds in Kenya

Entrepreneurship has been recognized as a prime catalyst for job creation, and there is evidence of a strong upward trend line between entrepreneurship and employment growth. In Kenya, this led to the establishment of funds aimed at financing small enterprises with a major aim of creating employment. Among these funds are Youth Enterprise Development Fund, Women Enterprise Fund, and Uwezo Fund. However research shows that these funds have not lived to fulfill the purpose for which they were created as the unemployment levels still remain high in Kenya. The question that begs for an answer is whether these funds are founded on an entrepreneurial policy. The objective of this study was to assess the motivation component of entrepreneurship policy foundations in the funds. The study adopted an exploratory case study research design. Out of the eight items on motivation component under consideration, the funds scored 16.675% which is below average. The study concluded that the policy objectives and measures of the funds have not taken into consideration the motivation component of the entrepreneurship policy foundations. As a result, they are highly unlikely to foster a culture of entrepreneurship in the country.

An Assessment of the Opportunity Component of Entrepreneurship Policy in the Youth, Women, and Uwezo Funds in Kenya

Following the recognition of self-employment in small enterprises as a partial solution to unemployment in Kenya, a number of government funds aimed at generating sustainable employment creating growth firms (otherwise called gazelles in economic jargon) have been established. They include Youth Enterprise Development Fund (YEDF), Women Enterprise Fund, and Uwezo Fund. However, the unemployment levels still remain high, and this could be a clear indication that these institutions have had very little or no effect on the unemployment situation in Kenya. The major concern then is whether the funds are founded on an entrepreneurship policy. This study sought to assess the opportunity component of entrepreneurship policy in the funds and adopted an exploratory case study research design. Out of the eight items on opportunity component under consideration, the funds scored 58.375% which is slightly above average. The study concluded that there are policy objectives and measures in the funds that are geared towards addressing the opportunity component of entrepreneurship policy. As a result, there may be higher chances of survival given the right support but the motivation and skills components need to be addressed too.

THE ROLE OF COMMUNICATION IN THE DISBURSEMENT OF YOUTH ENTERPRISE DEVELOPMENT FUND: A CASE STUDY OF NYERI TOWN CONSTITUENCY YOUTH ENTERPRISE SCHEME (C-YES).

Purpose: The study was an assessment of the role of communication in effective disbursement of Youth Enterprise Development Fund.Nyeri Town Constituency Youth Enterprise Scheme(C-YES) was used as a case study with a view to drawing generalizations on the effectiveness or otherwise of disbursement of funds to the youth from the National Youth Enterprise Development Fund kitty.Methodology: A descriptive survey research design was used. A questionnaire was used to collect data. A majority of the questions were closed ended and a few were open-ended. A population of 260 respondents was chosen, consisting of 200 youth groups and 60 CDAs. A sample size of 50% was chosen. The sample was 130 individuals divided into 100 youth groups and 30 CDAs. The data was analyzed using descriptive statistics. The tool for analysis was S.P.S.S; a Windows based statistical Package for social science. Presentation of the findings was done in tabulated and graphical formats. Results: Findings indicate that that there are different preferred channels of communication for the youth’s groups and the community development assistants.Findings also indicate that the feedback mechanisms between youth groups and CDAs are not effective and this may have a bearing on the successful disbursement of youth funds. Findings indicated that the various communication gaps existed in youth groups as well as in CDA offices. Findings indicate that access and disbursement of youth enterprise development fund has not been successful. This might have been caused by poor communication channels used to deliver information about the availability of the funds.Policy recommendation: The study recommends that future studies on this area should focus on the communication audit of the communication mechanisms that are being used by CDAs and the youth. In addition, further studies should consider the determinants of effective communication. Such as study would address the gap left out in this study of determining whether group characteristics such as size of youth group, legal status of youth group, gender and education level of youth leaders influence communication effectiveness

Strategy Dimension in Repayment of Financial Credit: Youth Enterprise Development Fund in Kipkelion West, Kenya

Strategy Dimension in Repayment of Financial Credit: Youth Enterprise Development Fund in Kipkelion West, Kenya

Strategy Dimension in Repayment of Financial Credit: Youth Enterprise Development Fund in Kipkelion West, Kenya

Strategy Dimension in Repayment of Financial Credit: Youth Enterprise Development Fund in Kipkelion West, Kenya

Factors affecting youth entrepreneurship development in Kibera district, Kenya

Entrepreneurship and business creation are a growing alternative for young people in different economies whose age group often faces a labor market with double digit unemployment rates. Due to low economic growth, traditional career paths and opportunities are disappearing rapidly. In response to these challenges, the government introduced the National Youth Policy (NYP), amongst others, to deal with the challenges facing youth in Kenya. It was through the NYP that the Youth Enterprise Development Fund (YEDF) was transformed to a state corporation in 2007 as a strategic move toward arresting unemployment among youth in Kenya. This study sought to report on the factors affecting youth entrepreneurship development in Kibera, a district of Kenya. Kibera is a low income, informal settlement in southwest Nairobi (Kenya) with an estimated population of one million housed on less than 2% of the total municipal residential land (or 3,000 people per hectare). A sample of three hundred entrepreneurs (aged 18-35) within the Kibera district, Kenya was drawn to participate in this study. Structured survey questionnaires were used to collect data from young business owners in Kibera. Findings revealed that government policy (NYP) and access to credit have a moderate to strong positive relationship in the development of youth entrepreneurship. Though the positive relationship shows that the Kenyan government is supporting youth entrepreneurship in Kibera, there have been differing views as to whether the programs to support youth are yielding positive results or not. Keywords: youth entrepreneurship, Kenya national youth policy, unemployment, Kibera. JEL Classification: L26, E24

Social Factors that Influence Loan Accessibility by Youth Entrepreneurs in Kenya: A Case of Youth Enterprise Development Fund in Gatundu South Constituency

The objective for this study was to assess the social factors that influence loan accessibility by youth entrepreneurs in Kenya. Data for analysis was received from 112 youth entrepreneurs from Gatundu south constituency collected using questionnaires while using statistical analysis tool of SPSS to analyze data. Social factors such as background characteristics of youth entrepreneurs’ i.e. personal interest to entrepreneurship, entrepreneurship education and supportive family and friends were attributable in influencing youth entrepreneurs to access loan facilities. 93.9% of respondents indicated that they accessed youth fund because they had personal interest to be entrepreneurs, 64% were influenced by their family and friends who provided information on sources of finance, business ideas and moral support. Individual lending model was preferred by 52% of respondents to group lending model which was rated 86% as being ineffective. Group lending model on the other hand work effectively where therise cohesion and proper leadership. The study recommended review of policies on access to loans by youth entrepreneurs by government, policy makers and financial institutions with regards to social factors.

Factors influencing choice of strategic management modes of small enterprises

Studies indicate that 75% of small enterprises in the world fail during their first 5 years of operation. In Kenya, just about 20% grow to the next size category. Scholars have prescribed formal strategic management modes, but the small enterprises (SEs) continue to not only fail but also depict informal strategic management modes. However, few studies have been done to examine whether the dismal performance of SEs is due to other factors unrelated to the management of the enterprises, especially in the context of a developing country like Kenya. The specific objectives were to identify the strategic management modes employed by the small enterprises in Kisumu County with specific reference to the Youth Enterprise Fund beneficiaries in Kisumu County and to assess the factors influencing the choice of these modes. The study was anchored on Mintzbergs' theories on deliberate, emergent, and reactive strategic management modes. The study adopted a descriptive cross-sectional research design. The target population was the 242 small enterprises run by the Youth Enterprise Development Fund (YEDF), out of which 134 enterprises were sampled using Yamane's criteria. The study adopted questionnaire and interview methods as the basic data collection methods with the questionnaire being tested through content validity index and Cronbach alpha's internal consistency index, respectively. The study found that the basic modes used by small enterprise were deliberate, emergent, and reactive and that the small enterprises in Kisumu County used these modes interchangeably but relied more on the reactive mode of strategic management. The study revealed that the choice of these modes was dictated by the personal, environmental, and firm characteristics of the enterprises. The study concludes that continued exposure to formal modes would only sustain the endemic failure of the SEs because the SEs need formal exposure to models that address their situation. The study therefore urgently recommends formalization of elements of reactive strategic management modes and the personal factors in small firm curricula.