Determinants of Youth Fund Utilization in Micro Enterprises In The Case Of Ambo Town, West Shoa Zone Ethiopia

Abstract

Microenterprises are small businesses that typically employ fewer than ten people and have limited access to financial resources. There is a need for a comprehensive study that explores the determinants of youth fund utilization in microenterprises owned by young people. The objectives of this study were to assess the relationship between demographic factors and fund utilization, to investigate the level of youth fund utilization, and to identify factors influencing youth fund utilization in the study area. The study was conducted among 167 small microenterprises and key informants in Ambo town. The data was collected by using semi structured questionnaires and guiding questions for key informants. The analysis of the data included descriptive and inferential analysis. The result of the descriptive analysis was presented using frequency tables and figures. In the inferential analysis, binary logistic regression analysis was done to identify factors determining youth fund utilization. Binary logistic regression analysis model was used at 95 percent confidence interval and p value of less than 0.05. The finding of the study indicated that one half of respondents utilized youth fund in Ambo town. Youth fund utilization was determined by not having business control, using banks and microfinances as sources of loan for small business, and having awareness of the benefits of youth fund utilization. The finding of the current study revealed that only one-half of the youth utilized youth fund for their microenterprises. Business control, source of capital for business, and awareness of benefits of youth fund utilization were factors that determine youth fund utilization. Based on the findings, all stakeholders should work to increase the utilizers of youth fund utilization by working on the determining factors, business control, and source of business capital and awareness of the youth where the users can overcome different problems. After all these issues are overcome, the concerned bodies should monitor and supervise these youths to help in supporting themselves for the fund.