Abstract:
Globally youth economic empowerment plays an important role in the economies of many
countries since people under 25 years of age, currently represent about half of the world’s
population (Olawe & Garwe, 2018). Youth funds are important as before the economic and
financial crisis, many young people were already locked out of the benefits of globalisation,
experiencing underemployment in casual labour in the informal sector or hazardous and
abusive work. Youth development funds support access to skills and jobs as they cannot happen
in isolation from supportive development policies (ILO, 2018).
Developed countries like U.S.A and European countries, especially England in the United
Kingdom have focused on the empowering youth in order to promote economic growth of their
nations (ILO, 2018).The world is experiencing an unprecedented “youth bulge.” People under
25 currently represent about half of the world’s population in some developing countries is
60% and over the next decade, more than one billion children will transition through
adolescence into adulthood. Now the youth employment crisis has reached intolerable
dimensions evidenced by higher unemployment, lower quality jobs and rising marginalisation
of youth (Wohoro, 2016).
In developing countries 60% of the populations are youth and poor economic status among
them is the main challenge that motivated many governments, local and international bodies to
promote National Youth Funds (NYF). The national youth funds have proven to be significant
in ensuring economic opportunities and promotion of entrepreneurship among youth (Mbaya,
2013).International organisations such as international labour Originations (ILO), World Bank,
UN-Habitat, World Organisation of Students and Youth (WOSY), World Assembly of Youth
(WAY), among others, has been promoting governments in developing countries where
unemployment is higher to establish the need of empowering youth economically as one of the
significant solutions to support them (Wohoro, 2016).
Findings Perceived Usefulness in Applications
According to the study findings, the respondents also admitted to have asked for the interest
free loans at least once for the last past two years. Findings on the youth awareness on the
procedures and conditions of accessing interest free loans in the study area indicated that all
respondents were aware of the presence of interest-free loans. The respondents also came to
know about the existence of interest free loans though their friends, media and television, from
schools and through political leaders.
Findings further indicate that most youth apart from those few who received interest free loans
are not aware of the presence of interest free loans in their community. This also indicated that
they depend on other source of capital apart from government funds or their awareness was so
low that they fail to grab the opportunity. Also, findings shows that most youth are not satisfied
with the procedures and conditions of getting interest but not at large percent which discourage
other youth trying to access the loans, youth not satisfied with the services they receive when
accessing interest free loans even especially time taken to approve loans not friendly to
youththough majority of them agreed that free loans repayment modes are friendly to youth
when compared to other types of loans.
On the types of economic activities that youth are involved in the study area study findings
indicated that higher number of youths were involved in farming, transportation services, small
scale industries and other types of small business including food vending businesses and
operating second-hand clothes shops. Findings further indicated that majority of youth had
experience of at least one year and above which could indicate they are aware of how to operate
and manage business.
With regard to the performance of youth economic activities before and after accessing interest
free loans, the findings indicated that interest free loans had contributed on the business
performance on sales revenue, business assets, number of customers production levels and
resulted to the increase of number of employees after receiving interest free loans.
Indication of Areas for Immediate Application Opportunities.
There is need for more measures to be taken by both the government and other financial
institutions to find the friendly conditions to increase the availability of interest free loans
amount to youth so as to help them to improve performance of their business and finally grow.
Also the Government must be effective business training and relevant business consultancy to
be given to youth so as to add business control and entrepreneurial capabilities for growth of
their business as well as to empower them more easily as loans without business skills become
liability as they will not be able to pay back as well as to empower them and increase in debts.
Strong efforts to enhance the role of the private sector in the creation of new employment for
the youth should be given priority in future budgets.
Compulsory and monitored programmes are needed to be provide practical work and work
environment related skills of the youth as soon as they graduate from universities and colleges
need to be given priority. These programmes, which are critical for making the ‘unemployable’
graduates ‘employable ‘include internship, apprenticeship, graduate placement, residency
practicum, monitored graduate volunteer programmes, and mentorship. However, close
supervision of the government is also needed for the success of these programmes.
The study police implication reflects the reality and plans of the nation. This is because the
research findings are in line with the current century where there is a huge wave of unemployed
youth, and there are a variety of alternatives needed to raise them by providing low interest
loans and creating a friendly business environment, eliminating employment and reducing
dependency with the aim of boosting the economy, industry and education for all people
starting with children and young people. This study is also in line with the principles of 2019,
in the provision of loans and credit management for groups of women, youth and people with
disabilities where the research findings are in line with the specific requirements.