Factors Affecting Funding of Youth Group Enterprises in Kenya: A Case Study of Machakos Town Constituency

Abstract

This study sought to establish the factors affecting funding of youth group enterprises through youth Enterprise Development Fund. Specifically the study sought to determine whether the nature of businesses, management skills, business plan development and collateral requirements affects funding of youth group enterprises in Kenya. The study adopted descriptive research design. The study targeted youth development officers in Machakos district and youth group that applied for C-YES loan scheme 2010-2012. This also included five youth officers that were involved in the process as agencies of YEDF. Stratified sampling technique was applied whereby the sample was divided into sub-groups of youth officers and youth members from funded groups and groups that were not funded. The sample size of the study was 75 respondents; 70 respondents from the youth groups and 5 youth officers. Primary data was collected using a questionnaire for youth group members interview guides for the youth development officers. The collected data was analyzed through descriptive analysis and inferential statistics using SPSS. The analyzed data was presented in tables and charts to summarize responses. The study found out that funds that the youths were given for their intended purposes were not enough. The youths cited that their businesses were performing well but indicated that they needed more funds so as to achieve comprehensive growth. The study concluded that lack of proper business plan development, adequate repayment structures and lack of repayment avenues was a problem. To improve on the viability of the youth enterprises, there is need for the Government to aggressively market the youth products. The study therefore recommended that the youths need to be sensitized on youth group formation and registration in order to benefit more from the fund. The Fund should invest more in public sensitization and education on its operations and progresses since its inception. There should be alternative public sensitization and education avenues that are relevant to youth development.

Keywords: nature of businesses, management skills, business plan development, collateral requirements