An Assessment of the Entrepreneurship Policy Foundations of the Youth, Women, and Uwezo Funds in Kenya

Abstract

Entrepreneurship has been recognized as a prime catalyst for job creation, and there is evidence of a strong upward trend line between entrepreneurship and employment growth. In Kenya, this led to the establishment of funds aimed at financing small enterprises with a major aim of creating employment. Among these funds are YEDF, WEF, and Uwezo Fund. However research shows that these funds have not lived to fulfill the purpose for which they were created as the unemployment rates still remain high especially among the youth. The question that begs for an answer is whether these funds are founded on an entrepreneurship policy. The major objective of this study was to assess the entrepreneurial foundations of the Youth Enterprise Development Fund, Women Enterprise Fund, and Uwezo fund. The specific objectives were to assess whether the process of formulation of the funds was entrepreneurial; to assess the motivation component of entrepreneurship policy in the funds; to assess the opportunity component of entrepreneurship policy in the funds; to assess the skills component of entrepreneurship policy in the funds and; to verify the entrepreneurial policy typology that guided the establishment of the funds. The research took a qualitative approach and adopted an exploratory multiple case studies research design. The target population for this study included the chief executives and senior managers in YEDF, WEF, and Uwezo Fund (24 in total). The researcher also visited the Ministry of Industry, Trade and Cooperatives, the Micro and Small Enterprises Authority, as well as the Kenya Institute of Curriculum Development. Primary data was collected using personal interview. Data were also collected through content-analysis which consisted of analyzing the contents of documentary materials such as Sessional Papers, publications from the government, websites, books, magazines and newspapers. Data analysis involved the researcher developing eight items for each of the entrepreneurship policy foundations where scores were awarded to each fund to identify the comprehensiveness of entrepreneurship policy in the funds. Frequency counts, mean scores, and percentages for each fund were obtained on these items and this formed the basis for drawing conclusions. The findings revealed that the recommended process of formulation of entrepreneurship policies was not followed. On the motivation component, the average, score was 1.334 points out of eight which translates to 16.675%. On the opportunity component, the average score for the three funds was 4.67 points out of eight which translates to 58.375%. On the skills component, the average score for the three funds was 1.167 which translates to 14.59% on the skills component. The overall average scores for the three funds 7.171 points out of 24 on the entrepreneurship policy foundations. This translates to 29.88% which is below average. By taking a critical look at policy objectives, policy areas, and policy measures, this study concluded that the dominant policy typology that guided the establishment of the funds is the E-extension policy. The study concluded that the three funds are not founded on an entrepreneurship policy and this explains why various studies have concluded that the funds have not had effect on the enterprises and consequently the unemployment rates. The study recommended that there is need to go back to the drawing board in as far as policies to spur entrepreneurship are concerned as there must be a mechanism in place that leads to a high rate of inflow of new entrepreneurs who in turn create new enterprises.