Effects of Financial Literacy on Sustainable Entrepreneurship among the Youths in Bomet County, Kenya

Abstract

There is growing unemployment in Kenya and the youths are bearing the blunt of this worrying trend, despite the numerous interventions by both state and non-state actors in encouraging the youths to venture into entrepreneurship. This study sought to establish the role of Financial Literacy on the development of sustainable business ideas and innovations. The study was conceptualized with the intention of investigating the role that financial literacy plays in influencing sustainable entrepreneurship among the youthful entrepreneurs. The population of interests was the business enterprises run by youthful entrepreneurs across various sectors of business in Bomet Municipality located in Bomet County; Kenya. The study used primary data with a sample size of 473 respondents which achieved 100% response rate, with male response of 53% and 47% female. The measures of central tendency, measures of dispersion and Regression model were used to find out the relationship and correlation of the variables. The study established that there was a significant relationship between gender and sustainable entrepreneurship, further found, that financial literacy had weak a positive significant relationship with business sustainability. The study recommends that emphasis should be placed on financial literacy as a significant determinant of sustainable businesses among the youth entrepreneurs and that training as tool to provide more knowledge on entrepreneurial skills to be factored in the trade policy.