The Role of Uwezo Fund on the Economic Growth of Small and Medium Enterprises in Kiambu Couty, Kenya

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VII, July 2020 | ISSN 2454–6186

The Role of Uwezo Fund on the Economic Growth of Small and Medium Enterprises in Kiambu Couty, Kenya

Eunice Wamuyu Macharia¹, Dr. Jane Gakenia Njoroge^2
1,2School of Humanities and Social Sciences, Kenyatta University, Nairobi, Kenya

Abstract: Empirical Literature review indicates that financial challenge is the greatest obstacle that most small and medium enterprises (SMEs) face. Most of them opt to get subsidized governmental loans e.g Uwezo Fund, Youth enterprises fund and Women enterprises fund to finance their businesses. The researcher attempted to establish the role of Uwezo Fund on the SMEs growth. The significance of SMEs is largely recognized. Finance accessibility and other support services including training helps SMEs to grow. Uwezo Fund was started by the Kenyan government to help in eradication of extreme poverty and hunger and promote business start-ups especially by women, youth and people living with disabilities at constituency level. The researcher utilized Descriptive survey research design. 201 SMEs groups that had benefited from the Uwezo Fund in Juja constituency were the target population of which a sample of 61 respondents was selected which is thirty percent of the whole population. To collect data the researcher distributed Questionnaires to the respondents. Descriptive data analysis assisted by Statistical Package of Social Sciences (SPSS) was utilized in analysis. Bar graphs, tables and pie charts are forms in which data was presented. Percentages and frequencies were also used in presentation. The study outcome determined the role played by Uwezo fund towards SMEs’ economic growth in terms of creation of jobs and sales and profit generation. The theories that were used in the study to explain why SMEs chose Uwezo fund rather than other forms of financing are Trade off theory and Pecking order theory.

Keywords: Roles, Uwezo Fund, Small and medium enterprises.

I. INTRODUCTION

In the 21st Century, Small and Medium Enterprises (SME) have increasingly contributed to the economies of many countries in the world. Many of these SMEs develop to form large and complex businesses. Currently no single definition of SMEs is acceptable worldwide since it depends on the person and place of definition. (Omar et al 2009). An analysis of the definition of an SME shows that it depends on who is defining it and from where they are defining it. According to (Garikai 2011) definition of SMES is mostly by the number of employee’s, business wealth and assets and the income yield. However it differs upon every country’s restriction.

Read More