Influence of Youth Enterprise Development Fund Sponsored Entrepreneurship Skills Training on the Growth of Entrepreneurial Youth Group Based Enterprises in Nairobi County, Kenya
Abstract
The Government of Kenya initiated a youth enterprise fund named Youth Enterprise Development Fund in the year 2006 with one of the objectives as training the youth in entrepreneurship skills. The youths were required to form youth groups and operate youth group based enterprises. In fulfillment of its mandate, the YEDF has trained over 180,000 in business development and management skills, 62,000 were trained on business development and entrepreneurship skills. The training focuses on self-belief, self -motivation, entrepreneurship, and leadership. 2,500 youth have been trained on public procurement in Kenya. In spite of massive investment by the government on training youth enterprises the influence of YEDF, sponsored entrepreneurship skills training on the growth of entrepreneurial youth group based enterprises (YGBE) and the moderating role played by group dynamics in the relationship between YEDF- sponsored training and growth of Youth Group Based Enterprises is unknown. This study therefore aimed at investigating the influence of Entrepreneurship skills training on the growth, and the moderating role of groups’ dynamics, on the relationship between the entrepreneurship skills training and growth of entrepreneurial youth based enterprises. A cross sectional survey design was adopted on a sample of 156 from a population of 255 entrepreneurial youth group based enterprises that have benefited from YEDF training in Nairobi County, Kenya. Questionnaires and interview guides were used to collect data from group leaders. Cronbach Alpha coefficients of 0.7 for all variables was attained from the pilot study. Statistical Package for Social Sciences (SPSS) version 21 was used to analyze data. Correlation and regression techniques, analysis of variance (ANOVA) were used to test the study hypotheses. A multiple linear regression model was also used to derive inferential statistical indicators like the correlation, coefficient of determination, F-statistics, t-test statistic and the p-value. The key finding based on the tests conducted in the study was that entrepreneurship skills training had a significant effect on the response variable. The study also found group dynamics to have a significant moderating effect on the relationship between training and growth of entrepreneurial youth group based enterprises in Nairobi County. The study also established that group dynamics had predicative effect on the growth of entrepreneurial youth group based enterprises. The study recommended conducting of Training Need Analysis and establishment of group formation criteria guidelines.
Key terms: Entrepreneurship skills training, growth, entrepreneurial youth group based enterprises
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