YOUTH ENTERPRISE DEVELOPMENT FUND AS A CATALIST FOR GROWTH OF SMALL AND MEDIUM ENTERPRISES IN UASIN GISHU COUNTY, KENYA

Abstract

Developing countries are facing a great unemployment challenge due to a combined effect of slow economic growth and rapid increase in population. With the fact that Small and Medium Enterprises` sector not only provide the much needed jobs, it is a source of empowerment and poverty reduction; many governments are directing resources and policies towards developing this sector. Attempts to address growth of Small and Medium Enterprises in Kenya led to establishment of the Youth Enterprise Development Fund in the year 2006 with the sole purpose of reducing unemployment among the youth. The researcher sought to objectively assess the Youth Enterprise Development Fund as a catalyst for growth of Small and Medium Enterprises in Uasin Gishu County. The study sought to establish the effect of the business support services, availability of funds and entrepreneurial training by Youth Enterprise Development Fund on growth of Small and Medium Enterprises in Uasin Gishu County. A descriptive research design was employed. A target population of 445 Small and Medium Enterprises was used and a total sample size of 81 units obtained using stratified random sampling. In addition 5 Youth Enterprise Development fund officials working in the county were interviewed. Questionnaires and interview schedule were used as data collection instruments. The collected data was analyzed using descriptive and inferential statistics with the help of Statistical Product and Service Solution program. The findings revealed that in H01: Business support services offered by the Youth Enterprise Development Fund have no significant effect on the growth of Small and Medium Enterprises. The results failed to reject the hypothesis (β = 0.017, p < 0.847). H02: Availability of funds by the Youth Enterprise Development Fund has no significant effect on the growth of Small and Medium Enterprises. The hypothesis was rejected (β = 0.299, p< 0.009). H03: The entrepreneurial training by the Youth Enterprises Development Fund has no significant effect on growth of Small and Medium Enterprises. The results were (β =0.061, p< 0.487). The results failed to reject the hypothesis. Based on the findings the researcher concluded that Youth Enterprise Fund has led to the growth of enterprises. The study recommends that business support services be enhanced to reach more enterprises, organizations providing funds should work together to improve focus and that a policy encouraging entrepreneurship training at the primary school level should be formulated. This study would benefit future researchers by providing empirical evidence and the government in formulating their policy towards improving youth entrepreneurship.