Social Factors that Influence Loan Accessibility by Youth Entrepreneurs in Kenya: A Case of Youth Enterprise Development Fund in Gatundu South Constituency

Stephen Ngige Ng’ang’a and Maurice M. Sakwa

International Journal of Academic Research in Business and Social Sciences, 2015, vol. 5, issue 11, 230-248

Abstract: The objective for this study was to assess the social factors that influence loan accessibility by youth entrepreneurs in Kenya. Data for analysis was received from 112 youth entrepreneurs from Gatundu south constituency collected using questionnaires while using statistical analysis tool of SPSS to analyze data. Social factors such as background characteristics of youth entrepreneurs’ i.e. personal interest to entrepreneurship, entrepreneurship education and supportive family and friends were attributable in influencing youth entrepreneurs to access loan facilities. 93.9% of respondents indicated that they accessed youth fund because they had personal interest to be entrepreneurs, 64% were influenced by their family and friends who provided information on sources of finance, business ideas and moral support. Individual lending model was preferred by 52% of respondents to group lending model which was rated 86% as being ineffective. Group lending model on the other hand work effectively where therise cohesion and proper leadership. The study recommended review of policies on access to loans by youth entrepreneurs by government, policy makers and financial institutions with regards to social factors.

Keywords: Social factors; Loan accessibility; Entrepreneurship; Economic development; Personal interest; Personal Environment; Group dynamics (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:hur:ijarbs:v:5:y:2015:i:11:p:230-248

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