Credit Access And Growth Of Youth Owned Enterprises In Homa-Bay Town Constituency, Homa-Bay County

ABSTRACT

National youth funds are financial resources allocated and reflected in national budgets by governments either as grants or loans for youth (18-35) years to start new or expand existing businesses. In developed countries, youth entrepreneurship has thrived for decades due to conducive business environments, adequate government regulation, enabling mechanisms such as availability of funding from both government and private sectors and good youth entrepreneurship training programs. In developing countries youth entrepreneurship has suffered funding and entrepreneurship skills deficit, marketing and support lack opportunities that have diminished youth morale to engaging in self enterprise. Currently the business eco-system specifically regulatory barriers for youth entrepreneurs do not accelerate entrepreneurship as procedures and formalities required hinder and delay young entrepreneurs from enterprise startups, favor business failure and do not facilitate restart-ups. Specifically tailored to enhance youth development with focus on self-employment through entrepreneurship, the fund programmes activities that enhance knowledge, skills and attitudes to entrepreneurship. Little is however known about the extent to which this initiative has contributed to performance of youth owned enterprises. Similarly, enterprise failure points towards marketing gaps among youth entrepreneurs that need to be addressed. Purpose of the study was to assess credit access and growth of youth owned enterprises in Homa-Bay Town Constituency. The study was guided by three research objectives; investigate influence of credit access by youth on the performance of youth owned enterprises, examine effect of entrepreneurial skills and business skills development on the growth of youth owned enterprises and establish the role of the fund in marketing and growth of youth owned enterprises in Homa-Bay Town Constituency. Study findings will inform government policy makers to focus on advocating for conducive business environments, design and implement policies that enable youth entrepreneurship. The study targeted registered youth fund beneficiaries. A descriptive research design that adopted qualitative and quantitative approaches was used. Snowball sampling technique used, semi-structured questionnaires and Key Informant Interview Guides used for data collection. Study findings revealed that the fund was accessible (p> 0.05) but youth faced regulatory challenges which affected their enterprises (p=0.01).Youth entrepreneurship trainings were mostly done by banks 97.3 % (p=0.06) and non-governmental organizations 92% (p=0.497), youth fund 15.3 % (p≤ 0.05).Marketing limitations were experienced by small-medium enterprises; limited marketing knowledge and influence (87.5%), shortage of marketing techniques (84.5%) and limited finance (84.2 %).Only 45.3% enterprises confirmed business linkages. Study findings recommend conducive business environments, adequate government regulation and intensification youth entrepreneurship programmes.