Sources of Business Funds and Performance of Youth Owned Enterprises a Survey of Youth Owned Enterprises in Kayabwe- Nkozi, Mpigi District, Uganda
Author: OKEMA JOSEPH LOUIS
Supervisor: Edward Ssegawa Katumba
This research study is about the sources of business funds as the independent variable and the performance of youth owned businesses as the dependent variable. The major objective of this study was to establish the effect the sources of funds have on the performance of youth owned businesses. This objective was achieved by studying the effect of the individual components that make the variables and seeking answer to the question on whether loans, savings and donations respectively have an effect on the performance of youth owned businesses.
The study looked at the effect loans, savings and donations from family and friends have on the performance of the youth owned enterprises. In this study the performance of youth owned enterprises was explored in terms of profitability, asset turnover and market share and examining the effect loans, savings and donations have on each of these dimensions of performance.
The studied involved collection of data from the youth entrepreneurs located in Kayabwe and Nkozi towns in Mpigi district and mainly questionnaires were employed for this exercise. The findings of the research were analysed using Statistical Package for Social Scientists to generate objective information. The research study yielded that the sources of funds had an effect on the performance of the youth owned businesses, however the effects of the sources were insignificant.
Basing on the results of the study, researcher recommended that all money lenders review and improve on the lending policies and loan usage sensitization in order to enable loans as a source of business funds to the youth to have a positive and significant impact on the performance of the youth owned enterprises. The researcher also recommended the sensitization of the youth on saving and the revision the tax system and policies to provide a more favourable environment for saving among the youth.
Lastly the researcher also recommended that more carefully designed support in form of donations be given to the youth as to have a positive and significant impact on the performance of the youth owed enterprises.