Influence of youth enterprise development fund on growth of youth business enterprises in Kenya: The case of Kitui central sub-county Kitui county

Abstract

The purpose of this study was to investigate the influence of Youth Enterprise Development Fund on growth of Youth Business Enterprise in Kitui Central Sub-County of Kitui County. The objectives of the study were:- To determine the influence of utilization of youth Enterprise Development Fund on the growth of YBE, to determine how entrepreneurial training on YEDF influenced growth of YBE, to determine how the extent of allocation of YEDF influenced growth of YBE, and to determine the extent to which accessibility of YEDF influence growth of YBE. This study used descriptive survey research design. This study targeted all the 1500 youth in 100 youth groups in Kitui Central Sub-County. Simple random sampling was used to select 150 youth in 30 youth groups which is 30% of the total population. Questionnaires were used to collect data for this study. Most of the questionnaires were of five-point Likert rating scale. Pilot testing of the instrument was undertaken in one of the locations of Kitui Central Sub-County. Content validity of the instrument was determined by experts from the University of Nairobi. The reliability of the research instrument was established by administering the research tool in a pilot test. The raw data collected was systematically organized, coded, analyzed through descriptive statistics and finally presented using percentages and frequency distribution tables. The study found out that entrepreneurial training had a great influence on growth of YBEs. From the findings, those who attended training related to entrepreneurship had better management skills in terms of record keeping, financial management and leadership skills. The findings therefore recommended that entrepreneurial training on YEDF is essential and should be continued. Utilization of YEDF was also found to have influence on growth of YBEs. Ineffective utilization of YEDF negatively affected growth of YBEs .Influence of accessibility of YEDF on growth of YBEs was noted to be positive. The study findings pointed out that YEDF was easily accessible and as a result many youth groups applied for it hence influencing their youth projects positively. The extent of allocation in terms of adequacy of YEDF was also found to influence growth of YBEs. The findings recommended that there was need for the government to increase the YEDF allocations to at least Ksh.250,000. Finally, the study suggested further research on the significance of YEDF on economic empowerment of persons with disabilities, and secondly, further research on the role of UWEZO fund on growth of youth and women business enterprises in Kenya.