ABSTRACT
Business growth as a result of business support services like entrepreneurial skills and financial services has been lauded by many studies as an engine which taps well the practical and creative business approaches affecting youth owned enterprises. In an effort to reduce high levels of poverty and unemployment amongst the youth, the Government of Kenya has since independence established many affirmative action funds such as Youth Enterprise Development Fund and Uwezo Fund to accelerate enterprise growth. However, youth owned enterprises are still facing many challenges including access to financial services, business development services and market access resulting into collapse of some of their businesses. The study sought to examine the influence of Uwezo Fund business support services on the growth of youth owned enterprises. Specifically the study sought to examine the influence of Uwezo Fund lending services, business development services and market access on growth of youth owned enterprises in Kitui County. It was anchored on the theory of stages of development by Churchill & Lewis. The study adopted a descriptive research design. A sample of beneficiaries’ enterprises at the County level formed the study’s sample size of 100 groups, a 20% of the total 501 funded youth groups by 2016/2017 financial year, from which one enterprise per group was selected for study. Stratified random sampling method was used in selecting the respondents. Primary data was collected using questionnaires which were self-administered. Content validity of the research instruments was checked using opinions from experts while construct validity done through checking of consistency in both conceptual and theoretical reviews. Reliability of collected data was achieved through a pilot study and a Cronbach’s Alpha, with 0.7 ranges being the range of measurement. Descriptive and quantitative methods of study were used in data collection, data presentation and data analysis. Quantitative data was analyzed using frequency tables and percentages while qualitative data interpreted through use of linear and multi linear regressions. From the study findings, all independent variables except market access through Access to Government Procurement Opportunities had a significant linear relationship with the dependent variable. Based on the study’s findings, the study recommends that the fund should strengthen its own business support services, especially business development services and market access services, to influence rapid growth of youth owned enterprises. Findings from the study will make Uwezo Fund to have a positive impact on growth of youth owned enterprises by offering youth friendly business support services.
