The overall objective of the study was to explore youth access to empowerment funds for entrepreneurship in Zambia. This was achieved in this study and is reflected in the factors affecting youth access to empowerment funds for entrepreneurship in Zambia which were identified and examined. Three main areas were explored, i.e. the economic, political and social aspects of the topic. The study was divided into three specific objectives.
The political factors and policies in place that assist youth to access empowerment funds for entrepreneurship in Zambia
This objective was to identify the existing political factors and policies that assist youth to access empowerment funds for entrepreneurship in Zambia. The policies identified were the National Youth Policy and the Citizens Economic Empowerment Act which provide Youth Development Funds and Citizens Economic Empowerment Funds respectively. However, it was found that most youth were unaware of these policies and could not differentiate between policies and Acts of Parliament which provide empowerment funds for them. The fact that they were not aware of these policies and Acts meant that they were not likely to apply for empowerment funds. The main political factor, as discussed in Chapter 5, was corruption which manifested itself in political patronage, vote buying, nepotism and political discrimination in the distribution of empowerment funds. These factors have a negative bearing on youth access to empowerment funds.
The factors that facilitate youth access to empowerment funds for entrepreneurship
The factors that facilitate youth access to empowerment funds for entrepreneurship include; employment and income, collateral and skills. This objective was to determine the role of employment and income, collateral and skills in accessing empowerment funds for entrepreneurship by the youth.
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It was found that employment and income can have both a positive and a negative impact on youth access to empowerment funds. Income from employment or sales in different trades influences access to empowerment funds positively in that those youth with higher incomes are more likely to access empowerment funds. Employment influences access to empowerment funds negatively in that it fosters exclusion of the unemployed who are in need of empowerment funds for entrepreneurship, as the employed income earners are empowered with funds instead of the unemployed. An explanation for this is that employed youth have a stable income, in form of a salary, which could guarantee the repayment of the loans they obtain from the Ministry of Youth and Citizens Economic Empowerment Commission (CEEC) as empowerment funds.
It was found that collateral had no bearing on youth access to empowerment funds. The reasons are that the requirements for accessing empowerment funds differ according to the disbursing agency. The CEEC does not want collateral for amounts below K50,000 but any loan amount above requires collateral. The Ministry of Youth also does not ask for collateral in form of property but rather for a guarantor which removes the pressure of collateral from the youth.
In this study, practical business and entrepreneurial skills were identified as skills that enable youth to access empowerment funds. Most youth acquire skills either informally while trading or in secondary school. This has various implications. To begin with, there is need to revise the school curriculum to increase the number of youth acquiring skills. The number of skills training centres should also increase to assist more youths to acquire the necessary skills to obtain empowerment funds and use them wisely. University students should do internships in companies to acquire practical business and entrepreneurial skills. Graduates should also change their mindset towards entrepreneurship from negative to positive and desist from only focusing on getting white collar jobs.
The factors that inhibit youth access to empowerment funds for entrepreneurship
The factors that inhibit youth access to empowerment funds for entrepreneurship are lack of youth friendly services and lack of access to relevant information. This objective was to investigate existing services and information that can assist youths to access empowerment funds for entrepreneurship.
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It was found that the available services are limited which negatively influences youth access to these funds. The most popular support service for youth entrepreneurs is mentorship. Incubators are few. Role models are available, but apprenticeships are almost non-existent because already established business people are not willing to take on youth entrepreneurs as they are perceived to be a risky clientele by financial lenders who could provide them with empowerment funds.
Both the medium and the level of access to relevant information can have a positive impact but is not always effective. The medium of communication of information varied from radio to social media depending of the geographic area where the youth live, that is in rural, peri- urban or urban areas. Access to information via the radio has a positive impact by increasing access to empowerment funds especially since the messages are in local languages. The more the youth hear about empowerment funds, the higher the chances of them applying for these funds. Access to information via social media is not very effective because the internet is not available to everyone, even to those in urban areas, due to the high cost of internet data bundles and frequent power outages due to load shedding. Access to information through family members can have a negative impact on access to empowerment funds due to the possibility of nepotism on the part of the staff in disbursing agencies who may encourage their relatives to apply for empowerment funds and ensure that they get the funds.