Maseno University Repository

CRITICAL FACTORS AND CREDIT UPTAKE IN YOUTH ENTERPRISE DEVELOPMENT FUND IN SUNA EAST CONSTITUENCY, MIGORI COUNTY, KENYA

Show simple item record

dc.contributor.author ODONGO GEORGE OTIENO
dc.date.accessioned 2020-07-27T06:30:30Z
dc.date.available 2020-07-27T06:30:30Z
dc.date.issued 2018-11
dc.identifier.uri https://repository.maseno.ac.ke/handle/123456789/1578
dc.description.abstract Youth entrepreneurship in Kenya plays a significant role in enhancing Kenya’s economic development and in reducing youth unemployment. Despite the great significance of entrepreneurship in Kenya, there is a high failure rate in a span of few months after start-up mostly attributed to lack of inability to access funds. Credit to youth for undertaking small- scale projects assist them generate income and help them to provide for their families. However, youth are considered riskier by most financial institutions, hence, most lenders allocate small proportion of loans to the youth. Moreover, banks are reluctant to lend to youth because of lack of adequate collateral. The objective of this study was to determine factors affecting credit uptake in Youth Enterprise Development Fund in Suna East Constituency in Migori County, Kenya. This study was guided by the following specific objectives: to examine the effects of credit management, lending conditions, entrepreneurial skills and financial literacy on credit uptake from YEDF. Theories used to anchor the study were, Goriths Business Refinancing theory and Group Thinking theory. The study utilized descriptive survey research design. Study population was 892 youth entrepreneurs registered in Suna East Constituency engaged in different businesses. A proportionate sampling method was used on the target population and the respondents were selected using stratified sampling method. The sample comprised of 100 youth entrepreneurs. The research instrument used was questionnaires and validity of the instrument was ensured using content validity and construct validity. Reliability was assessed with the use of Cronbach’s alpha coefficient. Quantitative data was analyzed using descriptive statistics such as mean and standard deviations. Inferential statistics involved the use of multiple regression and correlation analysis. The study established that credit management, lending conditions, entrepreneurial skills and financial literacy had positive and significant effect on the level of credit uptake in YEDF. The study concludes that through credit management YEDF should incorporate activities aimed at ensuring that invoices are paid within the defined payment terms and conditions. Effective credit management serves to prevent late payment or non-payment. YEDF requires that the youth entrepreneurs when seeking loans, provide certain relevant information regarding their financial capability to qualify for the loans. YEDF needs to enhance youth entrepreneurial skills by polishing their business skills, improving their strategic thinking and incorporating networking into small business activities. Gaining financial literacy among the youth entrepreneurs helps them possess set of skills and knowledge that allows an individual to make informed and effective financial decisions. The study recommends that the management of YEDF should ensure that youth who borrow their loans will pay within the stipulated time. Financial literacy aims at enhancing the youth’s knowledge in financial matters and their ability to make wise financial decisions. Therefore, YEDF should increase access to youth financial education to help young people to develop money management knowledge and skills, acquire more experiences with personal finance and develop effective financial habits en_US
dc.publisher KENYATTA UNIVERSITY en_US
dc.title CRITICAL FACTORS AND CREDIT UPTAKE IN YOUTH ENTERPRISE DEVELOPMENT FUND IN SUNA EAST CONSTITUENCY, MIGORI COUNTY, KENYA en_US
dc.type Article en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search Maseno University Repository


Browse

My Account