Effectiveness of national youth fund in promoting youth-led businesses: case study of Dagoretti and Kabete Divisions Nairobi, Kenya

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Kampala International University,College of Economics and Management
This study looked at the effectiveness of youth enterprise development fund in promoting youth-led businesses in Dagoretti and Kabete Divisions. The study involved an analysis of the impact of the youth fund in developing and empowering youth for self-reliance and active participation in economic, political and social affairs ofthe nation. The general objective was to determine YEDF as regards the relevance and timeliness of this fund. In particular the study considered the views of youth on how the funds have contributed to the development of their enterprises.The scope of the study focused on issues concerning youth, YEDF management team and the youth development department. Dagoretti and Kabete Divisions are in Nairobi west. Empirical data on youth enterprise development fund was collected from seventy respondents from various youth groups in two divisions. The study used both quantitative and qualitative data analysis procedures. The research used a descriptive study design using simple random sampling. Data was collectedusing questionnaires and interviews. Data was analyzed using interpretive and descriptive reports and expressed in tables and charts. Key findings ofthe study revealed that 60% ofthe youth are not contented with the fund. Its was found that the criteria of identifying beneficiaries were not clear and 80% of the fund allocated to each group was not sufficient nor was it disbursed in time. Consequently, majority (88%) of the respondents indicated that they have been alienated from all decision making processes. There was a feeling that 58.6 percent of youth issues and concerns in all policies and programmes were left to the officers who never engaged the youths whatsoever. It was further established that 62% of the respondents considered career development opportunities and micro enterprise support programs very 9rucial in starting and expanding businesses. However, the youth (70%) said the management was less concerned on workshops and seminars though they are vital opportunities for business training and mentoring. This led to poor performance of youth-led enterprises (65.5%) and in extension low profitability. Access to credit loan was available but high interest rates and lack of collateral security locked out some groups from acquiring alternative capital. The study therefore concluded that effective youth involvement in decision making coupled with proper networking and collaboration of youth groups is key to youth development and empowerment. Only then, that the development opportunities, training and mentoring would make sense; leading to performance ofthe youth-owned small and micro enterprises. Consequently, the study recommends that the Ministry of Youth Affairs and Sports should negotiate increment of the youth fund kitty, review allocation and disbursement strategies, stress on youth involvement in decision making and initiate policies that build youth capacity to entrepreneurship.
A Thesis Presented to the School of Postgraduate Studies and Research Kampala International University Kampala, Uganda in Partial Fulfillment of the Requirements for the Degree Master of Business Administration (Banking & Finance
Youth, Business, Fund