ANALYSIS OF FACTORS INFLUENCING THE FINANCIAL PERFORMANCE OF YOUTH OWNED ENTERPRISES IN KILIFI COUNTY, KENYA

Abstract: Youth owned enterprises are businesses which are owned and run by individuals within the age bracket of 18-35 years. These enterprises are usually small in size with low entry barriers coupled with low capital requirements. They significantly reduce youth unemployment both at the national and regional level. However, these enterprises have not been performing well financially due to several challenges such as finance. A significant number of them fail to grow while some collapse even before being launched. The purpose of this study was to analyze the factors influencing the financial performance of youth owned enterprises in Kilifi County, Kenya. Theories of resource-based view and firm growth guided the study. The target population was 150 registered youth owned enterprises from which a sample of 108 was drawn. The study adopted a descriptive research design. Primary data was collected using structured questionnaires with both open and closed ended questions. A pilot study was conducted to pre-test and fine tune the questionnaires. Descriptive statistics, correlation analysis and multiple regression analysis were used to analyze the data. The questionnaire response rate was 100%. The computed Cronbach Alpha for the constructs was greater than 0.700 and thus reliable. Correlation analysis show that access to capital had the highest significant influence on financial performance of youth owned enterprises (0.902), followed by government regulation (0.882). Results of the regression analysis show that the adjusted R square is 0.868 which implies that 86.8% of the variations in the dependent variables are explained by the independent variables. Access to capital (with a coefficient of 0.314) was significant followed by government regulations with (0.147). The study concludes that youth entrepreneurs faced challenges in accessing capital, there is legality and smooth operation since they are aware of business regulations. The study recommends that government should come up with a policy that redesigns the available lending programs for youth owned enterprises to enhance accessibility of finance; still need to arrange for workshops and seminars periodically to sensitize youth entrepreneurs to ensure that their businesses remain in good standing; mentorship or apprenticeship programs be introduced to inculcate relevant experience and skills in business management, and that there is need to reduce personal risks by moving to limited liability from sole proprietorship of business ownership. Keywords: Financial Performance, Youth Owned Enterprises, Access to Capital, government regulations. Title: ANALYSIS OF FACTORS INFLUENCING THE FINANCIAL PERFORMANCE OF YOUTH OWNED ENTERPRISES IN KILIFI COUNTY, KENYA Author: Cornelius Mwarandu Mumba, Dr. Fikirini Lugogo, Dr. Flaura Kidere International Journal of Novel Research in Marketing Management and Economics ISSN 2394-7322 Vol. 11, Issue 3, September 2024 - December 2024 Page No: 39-57 Novelty Journals Website: www.noveltyjournals.com Published Date: 13-November-2024 DOI: https://doi.org/10.5281/zenodo.14129461 Paper Download Link (Source) https://www.noveltyjournals.com/upload/paper/ANALYSIS%20OF%20FACTORS%20INFLUENCING-13112024-1.pdf