Hey there, I hope this helps you out. I'm going to attach a picture to this thread. In this pic you can see my clutch at the top of the picture. This is how the clutch arm should look when the clutch lever is not being squeezed. Is your clutch arm facing the correct direction? You don't have it on backwards do you? You mentioned that you weren't quite sure what the clutch was used for, well when the clutch lever is squeezed it allows the bike to roll / move normally, like it would as a non-motorized bike. When attempting to start the motor on the bike you squeeze the clutch lever, begin riding the bike normally, pick up some speed and then release the clutch lever. This will result in the engine turning over and the bike will start up. I suggest taking the plate cover off the gear box (the thing the clutch arm is attached to) and make sure you have a cylinder shaped metal piece sticking out. This peace is pushed into the motor and is what actually disengages / engages the engine. Put the cover back on and with your thumb push the clutch arm in a few times. I did this for about 5-10 mins and it seemed to loosen some things up. Reattach your clutch cable and see if the clutch works properly. I'm still a complete newbie, but this is the best advice I can give. Take care and I hope it all works out.