MAKERERE UNIVERSITY BUSINESS SCHOOL

BACHELOR OF OFFICE AND INFORMATION MANAGEMENT

ENTREPRENUESRHIP DEVLELOPMENT

NAME REG NO SIGNATURE

ASERWA BERNAH
NULU NABAWESI
YOUTH FUND
Youth fund refers to financial resources contributed by government through annual
budgets in some cases through public- private patnetships with the private sector and
NGOs mainly to support micro, small, and medium enterprises.

The government got engaged in patnership with thre commercial banks ie Stanbic
bank, Centenary bank and DFCU bank to provide youth with acess to low interest
credit (15% compared to the annual market rate of about 23%) either as individuals or
as organised entities. About 56.2% ofvthe job stimulus funds (Ugx25.0bn) was
allocated to youth entrepreneurship venture capital fund undertaken in patnership with
participating banks. The resources under this category were embarked to support
growth of business ventures. About 7.8%(Ugx3.5bn) was allocated to enterprise
Uganda for youtth Entrepreneurial Training Programme to train youth on business
management skills, enable them to enter the job market or to create their own
enterprise. The remaining 37.1% (Ugx16.5bn) of the funds was allocated to KCCA
for establishing markets in Kampala in which youth and other small scale
manufacturers would undertake manufacturing and other processing activities..

Objectives
To provide venture capital to support growth of viable sustainable SMEs in the private
sector.
To support the business ventures owned by young entrepreneurs.
To provide business development services to youth owned enterprises.
To facilitate youth enterprises to develop linkages with large enterprises.
To provide market support to youth enterprises.

Focus sectors
The fund will support business ventures owned by young entrepreneurs in eligible
business sectors such as Agriculture, Manufacturing, Agro-processing, Fisheries,
Livestock, Health, Transport, Education, ICT, Tourism, Music industry among others.
Eligibility
Any Ugandan youth with a viable business is eligible to access funds regardless of
social sector based on faith, tribe, culture, or political influence as lonfg as he or she
can operate her business enterprise within Kampala for easy monitoring.
The eligible youth entrepreneurs should be aged between 18 to 35 years.

Basic Requirements
Each business should be able to provide employment to atleast four people by the end
of the loan period.

Each borrower should have atleast 3 referees and don't need security. The referees
should be reputable people in society.

Eligible beneficiaries should be willing to reveive advice and participate in financial

skills training and monitoring for proper business management.

Eligible enterprise must have been in operation for a minimum period of three
months.

Other requirements
Individuals
Should have a business plan
Current identity card
Applicants location
3referees including next of kin
Individual bank Account
People the applicant is going to operate with.
2 current passport photos
Proof of nationality ie birth certificate, passport.
Loan amount
Minimum Ugx 100,000 - Ugx 500,000
Minimum Ugx 500,000 - Ugx 25000,000 for a lrgal entity with atleadt 5
shareholder (patners).

Features
Loan period- Maximum 4years with 1 year grace period.

Borrowing
Each individual will benefit from the funds only once.

Period in which funds are expected

Applicants will receive funds on their personal bank accounts 2 weeks after
submission.

Forms can be picked from YMCA reception wandegeya, Buganda Royal Institute of
Business and Technical Education, Uganda Institute of Information and
Communication Technology(UICT), Management Training and Advisory Centre
(MTAC), Monaco Institute of Business and Computer Science.

Benefits
i. Involvement of the private sector unlocks resources, capacities and taps into
diverse capacities that different stakeholders can offer.
ii. Goodmix of financial and non financial services ensure business sustainability
and reduces chances of business failure.
iii. Decentralization, Constituency loans and use of lower level financial
intermediaries improve outreach to rural and remote areas.
iv. Government ownership reduces the private sector maximisation tendencies
that normally isolate the youth.
v. Relevant range of services for youth employment and enterprise development.
vi. Reduced fund management cost as government directly pays to the
beneficiaries bank accounts.

Challenges
i. Monitoring and Evaluation of different activities is a challenge as different
programmes and services are delivered through external patners. Without a
good M&E framework it maybe hard to determine the cost effectiveness of the
programm
ii. Government presence in the implementation may promote failure of youth
borrowers to service their loans as government presence creates a culture of
entitlement.
iii. Absence of other players limits the diverse experience from other stakeholders
in the provision of business development. support services and resource
leveraging that is to say no appropriate support from adult allies.
iv. Limited information about the youth funds and acces to formal financial
services remains limited among the youth. Many youth are not aware of the
existance of the youth fund.
v. Mis management of funds by the youth. The funds from this programm are not
utilised for their intended purposes as the youth divert the funds to other
activities.
vi. Loans from the youth fund are not sustainable. The funds repaid by the youth
cant be used to finance other projects due to the element of time value for
money, changes in interest rates, foreign exchange rates and many others.
vii. Corruption, there corruption as many officials divert the money to their
personal benefits thus the youth dont receive funds to set up enterprises.