Factors Influencing Repayment of Youth
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FACTORS INFLUENCING REPAYMENT OF YOUTH ENTERPRISE DEVELOPMENT FUND LOANS BY YOUTH GROUPS IN CHEPALUNGU CONSTITUENCY, BOMET COUNTY,KENYA BY CHEMWA JOYCE A RESEARCH PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF ARTS IN PROJECT PLANNING AND MANAGEMENT UNIVERSITY OF NAIROBI. 2015 DECLARATION This research project report is my original work and has never been presented for the award of a degree in any other university. Sign……………………………………………………….Date……………………………… Chemwa Joyce L50/68904/2013. This research report has been submitted for examination with my approval as the University supervisor. Sign………………………………….Date……………………………… Prof Charles Rambo Department of ExtraMural Studies University of Nairobi ii DEDICATION This research project is dedicated to my dear late father Joseph Kipkemoi and my mother Elizabeth Chemwa who inspired, mentored and dared me to achieve my full potential. iii ACKNOWLEDGEMENT I would like to thank my research supervisor Prof Charles Rambo for providing constant guidance during the period of writing this research project. My sincere gratitude goes to my course lecturers; Mr.George Onuonga, Mr. Kipkirui Rono, Mr Enock Odundo, Dr Mengo Onsembe and Mr.Joseph Owino who took me through the course units which are the pillars to my research study. I also thank Mr.Henry Kebabi for giving us neccessary course materials during my study. I would like to thank my colleagues Ruto Hilary ,Agnes Chebet,Winny Chelangat,Nelson Kitur,William Kitur and Lasaro Orego for their constructive criticism. I am also very grateful to my husband Ronald Koech, children Calistus Kiplangat ,Tonny Kipyegon,Laura Michelle, Cousin Beatrice Cherotich and my niece Janet Chepkirui for their moral, financial and emotional support throughout my study. I thank my Almighty God for his mercies , good health and for giving me the strength to carry out this research. iv TABLE OF CONTENT TITLE PAGE DECLARATION ....................................................................................................................... ii DEDICATION .......................................................................................................................... iii ACKNOWLEDGEMENT ........................................................................................................ iv LIST OF FIGURES ................................................................................................................. viii LIST OF TABLES .................................................................................................................... ix LIST OF ABBREVIATIONS AND ACRONYMS ................................................................... x ABSTRACT .............................................................................................................................. xi CHAPTER ONE:INTRODUCTION 1.1 Background of the Study ...................................................................................................... 1 1.2 Statement of the Problem ..................................................................................................... 6 1.3 Purpose of the study ............................................................................................................. 7 1.4 Objectives of the study ......................................................................................................... 8 1.5 Research Questions .............................................................................................................. 8 1.6 Significance of the study ...................................................................................................... 8 1.7 Limitations of the study........................................................................................................ 9 1.8 Delimitations of the study .................................................................................................... 9 1.9 Basic Assumptions of the study. .......................................................................................... 9 1.10 Definition of significant terms used in the study ............................................................. 10 1.11 Organization of the study ................................................................................................. 10 CHAPTER TWO:LITERATURE REVIEW 2.1 Introduction ........................................................................................................................ 12 2.2 The concept of Loan Repayment of Youth Enterprise Development Funds ..................... 12 2.2.1. Credit Lending models. .................................................................................................. 15 2.2.2 The concept of National Youth Funds (NYF) programme as form of credit to Youth .. 16 2.3 Youth Enterprise Development Fund funding process and its influence on Loan Repayment ................................................................................................................................ 21 2.3.1 YEDF Monitoring and Evaluation process and its influence to Loan Repayment. ...... 23 2.4 Influence of Training on Loan Repayment ....................................................................... 24 v 2.4.1 Business Development Services Training ....................................................................... 25 2.4.2 Level of Education of Youth Entrepreneurs. .................................................................. 27 2.5 Influence of Group dynamics on Loan repayment ............................................................. 28 2.6. The influence of Entrepreneurial culture on loan repayment ............................................ 31 2.7 Theoretical framework ....................................................................................................... 35 2.8 Conceptual Framework ...................................................................................................... 36 2.9 Gaps in Literature Review.................................................................................................. 37 2.10 Summary of Literature Review. ....................................................................................... 38 CHAPTER THREE:RESEARCH METHODOLOGY 3.1 Introduction ........................................................................................................................ 40 3.2 Research Design. ................................................................................................................ 40 3.3 Target Population ............................................................................................................... 40 3.4 Sample size and sampling procedure ................................................................................. 41 3.4.1 Sampling Procedure ........................................................................................................ 41 3.5 Data collection Research instruments .............................................................................. 41 3.5.1 Piloting of the study ........................................................................................................ 42 3.5.2 Validity of research instruments ..................................................................................... 42 3.5.3 Reliability of research instruments .................................................................................. 42 3.6 Data collection procedures ................................................................................................. 42 3.7 Methods of Data Analysis Techniques............................................................................... 43 3.8 Ethical considerations ........................................................................................................ 43 3.9 Operationalization of variables .......................................................................................... 43 CHAPTER FOUR:DATA ANALYSIS, PRESENTATION, INTERPRETATION AND DISCUSSION 4.1 Introduction ........................................................................................................................ 46 4.2 Questionnaire Return Rate ................................................................................................. 46 4.3Demographic Characteristic of the respondents.................................................................. 46 4.3.1Group members demographic characteristics .................................................................. 46 4.3.2 Group members Demographic Characteristics by Age ................................................... 47 4.3.3 Group Demographic characteristics by Marital Status ................................................... 48 4.3.4 Group Members demographic characteristics by level of education ........................... 48 4.3.5Group characteristics by Leadership position .................................................................. 49 vi 4.3.6 Duration of the Group ..................................................................................................... 50 4.4Influence of Funding process on Repayment of Youth Fund ............................................. 51 4.5Entrepreneurial Culture of Youth Entrepreneurs ................................................................ 53 4.6Influence of group dynamics on Youth Fund Loan Repayment ......................................... 56 4.7Influenceof training on loan repayment by youth groups ..................................................