Abstract:
This research has been done to determine the effects of the graduate loan scheme by
describing the performance of the beneficiary firms in Nairobi. Of importance to the
study was to establish who benefited from the scheme, what enterprises were started
or funded and finally to examine how these enterprises have performed considering
that they are owned by young educated entrepreneurs, a target group that has received
little prior direct assistance for enterprise creation.
A descriptive study was designed in which the beneficiaries responded to a
questionnaire. Also used in the study was some basic data on the beneficiaries and the
scheme background obtained from the disbursing branches.
The findings of the study show that 32 firms had benefited from the loan scheme in
Nairobi. Of these, 18 were confirmed to be operational at the time of the study,while
the others were either dormant or to have unknown locations.Of the 18 operational
firms, sixteen firms responded to the research instrument.
The study showed that the loan scheme has been of value in the start of these ventures
and that graduates can start and run viable enterprises. There is need for the scheme
to continue and further assistance given towarards preparing educated youth for careers
in enterprise. Lending institutions such as thene K.C.B. need to continue developing
further their special loan scheme administratirnon practices, by close monitoring and
evaluation of the current loan schemes.
