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The influence of credit on the growth of YEDF- funded group-based enterprises in Nairobi County, Kenya

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  • Catherine Wanjiru Gathitu

    (College of Human Resources Development, Jomo Kenyatta University of Agriculture and Technology (JKUAT), P.O Box 62000-00200, Nairobi, Kenya)

  • Elegwa Mukulu

    (Principal College of Human Resources Development, Jomo Kenyatta University of Agriculture and Technology (JKUAT), P.O Box 62000-00200, Nairobi, Kenya)

  • John Kihoro

    (Directorate of Computing and E-Learning, Cooperative University of College of Kenya (CUCK), P.O Box 24814-00502, Karen, Nairobi, Kenya)

Abstract

The study aimed at assessing the influence of Access to credit as provided by Youth Enterprises Development Fund (YEDF) on the growth of entrepreneurial youth group-based enterprises and moderating effect of group dynamics on the relationship between access to credit and the growth of entrepreneurial youth group-based enterprises. A cross-sectional survey research design was adopted and it used both quantitative and qualitative data. The accessible population comprised group leaders and Youth development Officers. This study employed stratified random sampling on a population of 255 subjects and a sample size was 156 group leaders out of which 121(77%) questionnaires were returned. The statistical package for social sciences (SPSS) version 21 was used to analyze data. YEDF is a government fund initiative with a nationwide presence in Kenya with Nairobi County as the smallest, most populous, has the highest uptake of the YEDF loans amounting to 2.3 billion, and has the highest loan repayment rate of 48%. The analysis of data revealed that access to credit was significant in explaining the growth of entrepreneurial youth group-based enterprises in Nairobi County. Access to credit had an R of 0.222 and contributed only 4.9% to the growth of entrepreneurial youth group-based enterprise. The study established that when group dynamics was introduced the model remained significant and R improved from 0.222 to 0.390. The study concludes that Access to credit significantly influences the growth of Entrepreneurial youth group-based enterprises in Nairobi county while group dynamics have a predictive effect but has no moderating effect. Key Words: Access to credit, Youth Enterprises development fund, Growth of youth group based enterprises.

Suggested Citation

  • Catherine Wanjiru Gathitu & Elegwa Mukulu & John Kihoro, 2021. "The influence of credit on the growth of YEDF- funded group-based enterprises in Nairobi County, Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(2), pages 183-194, March.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:2:p:183-194
    DOI: 10.20525/ijrbs.v10i2.1063
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    References listed on IDEAS

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