Financial Management Skills and Utilization of Youth Enterprise Development Fund among Youth Groups in Baringo South Constituency, Kenya
DOI:
https://doi.org/10.53819/81018102t4128Abstract
The Youth Enterprise Development Fund (YEDF) was introduced in 2006 as a strategy to broaden economic opportunities and promote youth participation in nation building. The effective utilization of the fund is vital if its objective of empowering young people through entrepreneurship. This study aimed to evaluate the correlation between financial management skills and the utilization of business development fund among youth groups in Baringo South Constituency. The study specifically sought to determine the relationship between investment decision making process, financial record management, saving behavior and cash flow management and the utilization of the YEDF in Baringo South Constituency, Baringo County, Kenya. Financial self-efficacy theory, goal setting theory, contingency theory and information asymmetry theory formed theoretical basis for this research. Researched entities was 22 YEDF-funded MSEs in Baringo South Constituency's. The study’s sample size was made up of 88 group officials, four fund managers and three youth fund officials. Questionnaires were used in the collection of primary data. Prior to the study, a pilot was conducted in Koibatek to test data gathering devices. Research data was collected qualitatively and quantitatively. Data was presented using tables and charts. The Statistical Package for the Social Sciences (SPSS) was used in the quantitative statistical analysis. The mean, standard deviation, frequencies, and percentages are used in descriptive. The study established a positive and significant relationship between the three independent variables: investment decision making, financial record management and saving behavior, and YEDF utilization among youth groups in Baringo South Constituency, Kenya. The study found a weak positive and significant relationship between cash flow management and YEDF utilization among youth groups in Baringo South Constituency, Kenya. The study recommended that entrepreneurial training for youth enterprises, and distinct saving accounts to assist youth groups organize their finances. It also emphasized on the importance of cash flow statements to help investors and shareholders understand how much money group is producing and spending. The study suggested that further studies should be conducted on financial management skills and use of government financial kits such Uwezo funds, Women Enterprise Development funds should be conducted.
Keywords: Financial management skills, investment decision, financial records, saving behavior, cash flow, fund utilization.
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