Influence of youth enterprise development fund activities on financial performance of youth - led enterprises in Kisumu town east constituency Kisumu county

Abstract

The need for Youth Economic Empowerment across the globe has attracted increasing interest from policy makers and even Governments. Youth Enterprise Development Fund in Kenya was established in the year 2006. Youths especially from Kisumu Town East Constituency have had challenge of gainful employment and have therefore formed Youth Groups to access youth fund in order to start or expand their enterprises. Since the year 2015, the fund has received a total of Kshs3,000,000 and disbursed a total of Kshs2, 700,000 to 54 youth led enterprises in the constituency. There is limited information on the contribution of YEDF on financial performance of Youth Led Enterprises in Kisumu Town East Constituency. Youths in Kisumu Town East constituency have started and managed enterprises from the fund. However, the enterprises keep collapsing and the youth return to poverty. Even though studies have been conducted on the Influence of Youth Enterprise Development Fund on Youth Enterprises, mixed results have been posted with none of the studies so far conducted examining the Influence of YEDF on Financial Performance of Youth Led Enterprises in Kisumu Town East Constituency. This study therefore seeks to examine the Influence of YEDF on Financial Performance of Youth Led Enterprises in Kisumu Town East Constituency as its main objective. Independent variables including Loan Disbursement, Business Development Services and Market Linkages and dependent variables such as increase in sales, increase in profitability and business expansion will be examined. Peter Drucker theory of Entrepreneurship will be the main guide to this study. The study will adopt a descriptive survey method. The target population will be 54 Youth Led Enterprises funded by YEDF in Kisumu between 2015 and 2017. Questionnaires will be used to collect primary data while secondary data will be obtained from the youth office Kisumu. Census will be applied on the targeted population after which data obtained will be analysed through descriptive statistics; Mean, Mode and Standard Deviation. The data will be presented through Pie Chart, Bar Graph and Frequency Table. The study will likely assist the Government to establish whether the objective for establishment of the YEDF is being met, it will also enlighten the youths of the benefit of the fund to their enterprises. Scholars may find the study a source of resource from which reference can be made while carrying out studies in similar field in the future and the public will be aware of the fund.