Dee, unless you're concerned about keeping the kart "original", don't worry about what you already have. Suitable engine options are abundant. Hondas and clones, Subaru, Briggs, Tecumsehs- I do mean lots. Any industrial engine in the 5-8 hp range will share the same shaft size, and mounting pattern. A very popular choice is the 6.5hp clone engine from Harbour Freight, and many many other equivalents. They can be had from under $100USD up to, say, $250-$300.
What to look for- Just verify that the engine that you're scouting has a 3/4" straight, keyed shaft. Generator engines often have tapered shafts which are not suitable. Some 8hp engines (and up) have a 1" straight, keyed shaft- which will not fit your clutch.