The objective for this study was to assess the social factors that influence loan accessibility by youth entrepreneurs in Kenya. Data for analysis was received from 112 youth entrepreneurs from Gatundu south constituency collected using questionnaires while using statistical analysis tool of SPSS to analyze data. Social factors such as background characteristics of youth entrepreneurs’ i.e. personal interest to entrepreneurship, entrepreneurship education and supportive family and friends were attributable in influencing youth entrepreneurs to access loan facilities. 93.9% of respondents indicated that they accessed youth fund because they had personal interest to be entrepreneurs, 64% were influenced by their family and friends who provided information on sources of finance, business ideas and moral support. Individual lending model was preferred by 52% of respondents to group lending model which was rated 86% as being ineffective. Group lending model on the other hand work effectively where therise cohesion and proper leadership. The study recommended review of policies on access to loans by youth entrepreneurs by government, policy makers and financial institutions with regards to social factors.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
