Factors influencing utilization of women enterprise fund: a survey of Buuri division of north Imenti constituency, Kenya

Abstract

Women play an important role in the economic growth of any country. However, their level of participation in economic activities has been influenced by a number of factors in the past most of which are culturally defined. Culture has been found to influence women economic participation in that it generally shapes their entrepreneurial behaviour. A number of global initiatives have been put in place to mainstream gender in all aspects of development and to give women an equal playing ground to participate in economic activities. Various campaigns pushing for inclusion of women in the development process have been carried for decades culminating to the development of the Millennium Development Goal of gender equality and women empowerment. In Kenya the government introduced Women Enterprise Fund in 2007 which is a flagship project under the social pillar of Kenya’s vision 2030. The fund, which targets Kenyan women aged 18 years and above, focuses on empowering women economically through provision of business support services to women to develop their enterprises. In the financial year 2009/2010, all the constituencies were allocated Kshs.2 Million each. However, studies done on the status of the fund at the time shows some distinctions in the utilization of the fund where some constituencies had fully utilized the amount allocated while others had not. This study sought to investigate the various factors that influence the utilization of Women Enterprise Fund in Buuri Division of North Imenti Constituency in Kenya. The study used a descriptive survey research design and data was collected using a questionnaire. 200 women groups spread throughout the division formed the target population. 30 women group leaders and 14 group members adding up to 44 respondents in all formed the sample size. Data collected was analysed using descriptive statistics and multiple linear regression; and presented using frequency tables and percentages. The study found out that a significant relationship exists between level of awareness and utilization of Women Enterprise Fund. A unit increase in level of awareness increases the utilization of the fund by a factor of 1.253. The study also established that a significant relationship exists between loan repayment patterns and utilization of women enterprise fund. A unit increase in default rates reduces utilization of Women Enterprise Fund by a factor of 0.362. However, access to business development services was not found to have any influence in the utilization of the fund. It was recommended that the main objective of the fund be enhanced to include a component that can assist in transforming social relations and the structural causes of poverty because as it is, Women Enterprise Fund cannot achieve