Relationship Between Financial Access and the Performance of Youth Agribusiness Enterprises in Makueni County, Kenya

Youth agribusiness enterprises contribute to employment, income generation, poverty reduction and food security. However, these enterprises face challenges that constrain their growth and performance, including gaps in financial inclusion. This study examined the relationship between financial literacy and the performance of youth agribusiness enterprises in Makueni County, Kenya. The study was anchored on the Resource-Based View, the Vulnerable Group Theory of Financial Inclusion and Financial Literacy Theory. A descriptive survey design with correlational analysis was adopted, and data were collected through a semi-structured questionnaire. The sampling frame comprised 165 youth agribusiness enterprises registered with the County Government of Makueni. Yamane’s (1967) formula gave a minimum sample of 117; to allow for non-response, questionnaires were administered to all 165 enterprises, and 136 were completed and returned, giving a response rate of 82.4%. Data were analysed using descriptive statistics, Pearson correlation and multiple linear regression. In the regression model, financial literacy had a positive and statistically significant association with enterprise performance (p < 0.001), and it further had the largest reported standardized coefficient. The null hypotheses were therefore rejected. Because the design was cross-sectional and observational, the results indicate associations rather than causal effects, and they apply to registered youth agribusiness enterprises in the county. The study recommends practical financial literacy training through county and value-chain programmes, youthfriendly credit products with repayment schedules aligned to agricultural seasons, and support for regular saving through savings groups and SACCOs. Keywords: Financial Literacy; Youth Agribusiness Enterprises; Enterprise Performance; Financial Inclusion; Agricultural Finance; Sustainability; Income Generation