Abstract:
Entrepreneurship is the practical application of enterprising qualities such as initiative, innovation, creativity and self employment (Schnurr and Newing, 1997). More governments are now embracing it as a solution to unemployment problem among the youth, hence stimulating economic development and growth. From the 1950s through to the 1980s, the provision of financial services by donors or governments was mainly in the form of subsidized rural credit programs. This was a top down approach to development. The government of Kenya is currently appraising its policies by mainstreaming the youth to its development agenda. This led to the formation of Youth Enterprise Development Ftmd in 2006. The fimd has since distributed Ksh. 4.5 billion to various youth groups and individuals in the country. The general objective of this study is to assess the perceived effect of the Fund on the growth of youth enterprises in Kenya with the case of youth groups of Bahari District. The target population was 34 youth groups with a total membership of 476 youths that had benefited from the fund in Bahari district. The study used stratified random sampling to obtain its 60 respondents from a sample of 10 youth groups. The study used a questionnaire as the main data collection instrument to obtain the required information for the study. Data was analyzed using both descriptive statistics. The study revealed that the Fund had assisted the youth to start and grow their businesses; this in tum had improved the economic welfare of the youth who had started earning from these enterprises. The Fund’s objectives are well understood by the youth whom it was targeting. The study established that the Fund has had a positive effect on the youth of Bahari District.
