Effect Of Youth Demographics On Financial Empowerment In Busia County, Kenya

Abstract

The aim of the research was to investigate the effect of youth demographic on the financial empowerment of youth in Busia County. Specifically, the study sought to establish the effect of borrowing practices on financial empowerment in Busia County; establish how saving habit affects financial empowerment in the Busia County; assess the effect of age on financial empowerment in Busia County, and to establish the effect of level of education on financial empowerment in Busia County. The study was quantitative in nature and used questionnaires to collect data from a sample size of 60 youths randomly selected from a sampling list obtained from the Microfinance Association of Kenya in Busia County. Both descriptive and inferential statistics were used to analyze the collected data. Specifically, the following methods of analysis were used. Pearson’s correlation and independent samples t-test. Analyzed data was presented in charts, tables, and text formats. From the analytical model developed, the relationship coefficient acquired was 0.8197 which showed a strong positive correlation among youth entitlement, loan economic acquired from microfinance institutions, amount of savings, aging as well as training of the respondents. The coefficient of determination (R2) acquired was 0.6719 implied that the model developed could account for 67.19% of increase in level of youth entitlement. This implied that the model developed was necessary at 95% confidence level and hence could be applied in prediction as well as making policy. The research connives that when destitute borrowing practices provide them with start-up and working capital, education as well as savings habits, the youths are able to engage themselves in business practices where they experience increased efficiency and effectiveness which leads to a positive result on entitlement and their task in community as well as making policy. The conclusion was also drawn that microfinance services enable youth to retain more money, obtain assets, improve their profits, advance living standards, education, involvement in making policy, allowed movement, self-belief, gain self-respect, advanced youth position to the community as well as decreased youth inhuman in the community. This research also concludes that most youth are in casual industry as well as not very trained. The study recommends that microfinance institutions review their services meant for the precise industry as well as repackage them to suit customers from the casual industry since the casual group forms the main part of their customers as results indicated. The research also recommends that microfinance institutions improve youth education mostly in rural areas to improve their experience of viable and justifiable assets ventures.