The Kenyan Environment’s Influence on the Emergence and Development of Corporate Entrepreneurship Among SMEs (original) (raw)
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Developing entrepreneurship in Africa: investigating critical resource challenges
Journal of Small Business and Enterprise Development, 2018
Purpose By drawing upon institutional theory, the purpose of this paper is to investigate the role of four critical resources (credit, electricity, contract enforcement and political governance) in explaining the quality of entrepreneurship and the depth of the supporting entrepreneurship ecosystem in Africa. Design/methodology/approach A quantitative approach based on ordinary least squares regression analysis was used. Three data sources were employed. First, the Global Entrepreneurship Index (GEI) of 35 African countries was used to measure the quality of entrepreneurship and the depth of the entrepreneurial ecosystem in Africa which represents the dependent variable. Second, the World Bank’s data on access to credit, electricity and contract enforcement in Africa were also employed as explanatory variables. Third, the Ibrahim Index of African Governance was used as an explanatory variable. Finally, country-specific data on four control variables (GDP, foreign direct investment, ...
Purpose – By drawing upon institutional theory, the purpose of this paper is to investigate the role of four critical resources (credit, electricity, contract enforcement and political governance) in explaining the quality of entrepreneurship and the depth of the supporting entrepreneurship ecosystem in Africa. Design/methodology/approach – A quantitative approach based on ordinary least squares regression analysis was used. Three data sources were employed. First, the Global Entrepreneurship Index (GEI) of 35 African countries was used to measure the quality of entrepreneurship and the depth of the entrepreneurial ecosystem in Africa which represents the dependent variable. Second, theWorld Bank’s data on access to credit, electricity and contract enforcement in Africa were also employed as explanatory variables. Third, the Ibrahim Index of African Governance was used as an explanatory variable. Finally, country-specific data on four control variables (GDP, foreign direct investment, population and education) were gathered and analysed. Findings – To support entrepreneurship development, Africa needs broad financial inclusion and state institutions that are more effective at enforcing contracts. Access to credit was non-significant and therefore did not contribute to the dependent variable (entrepreneurship quality and depth of entrepreneurial support in Africa). Access to electricity and political governance were statistically significant and correlated positively with the dependent variables. Finally, contract enforcement was partially significant and contributed to the dependent variable. Research limitations/implications – A lack of GEI data for all 54 African countries limited this study to only 35 African countries: 31 in sub-Saharan Africa and 4 in North Africa. Therefore, the generalisability of this study’s findings to the whole of Africa might be limited. Second, this study depended on indexes for this study. Therefore, any inconsistencies in the index aggregation if any could not be authenticated. This study has practical implications for the development of entrepreneurship in Africa. Public and private institutions for credit delivery, contract enforcement and the provision of utility services such as electricity are crucial for entrepreneurship development. Originality/value – The institutional void is a challenge for Africa. This study highlights the weak, corrupt nature of African institutions that supposedly support MSME growth. Effective entrepreneurship development in Africa depends on the presence of a supportive institutional infrastructure. This study engages institutional theory to explain the role of institutional factors such as state institutions, financial institutions, utility providers and markets in entrepreneurship development in Africa.
Institutional Environmental Attributes and Entrepreneurship Development in Nigeria
IJMRAP, 2021
This paper examined the influence of institution environmental attribute on Business development with a specific focus on the numbers of aspiring entrepreneurs in Lagos State. Primary data were used. The primary data were sourced through a self-administered structured questionnaire designed for small scale business owners in Alimosho LCDA, Lagos State, Nigeria. A proportionate stratified random sampling technique was used to select a sample of one hundred and twenty (120) respondents from a population of registered members of small and business operator in Alimosho LCDA, Lagos state. Data collected were analyzed using descriptive statistics like a table percentage, while formulated hypotheses were tested through the use of Regression Analysis at 95% confidence level. The result (P-Value_ 0.0000: R2_0.488) revealed that institution environmental attribute has significantly influenced individual business persons aspiring to be entrepreneurial. This study concluded that weak and corrupt government institution is detrimental to long term sustainable business performance and inimical to Entrepreneurship development and therefore, recommended that individuals and non-governmental organizations should join hands with the government in the fight against corruption in order to create a business friendly environment.
International Journal of Business Marketing and Management (IJBMM), 2023
The focus of this research was to establish the effect of entrepreneurship Ecosystem in inculcating entrepreneurial propensity for community development. Promotion of entrepreneurship in Kenya has existed ever since independence. The Government has shown tremendous support to entrepreneurship growth. The Government have channelled financial support through funding such as Women Enterprise fund, Youth Enterprise Fund and Uwezo Fund. Other forms of Government support include improved infrastructure, introduction of entrepreneurship education in all institutions of higher learning, as well as enhancing security in the country. Nevertheless, community underdevelopment has continued to excruciate. This research purposed to investigate whether the entrepreneurial ecosystems play any role in determining community development. The determinants of entrepreneurial ecosystems include Government Policy, Financial availability, Human Capital and the state of the market. The population under study were individuals operating Micro Enterprises within Nyeri Town. Out of 478 Micro Enterprises business owners were selected. A statistical formula was used where 236 were taken as a sample size which is within the acceptable sample. The theories that form the bases of this study includes Economic theory, Psychological Theory and the Social Cultural Theory. A questionnaire was administered out of which 212 responded. Data was then analysed using SPSS. The findings indicated that Government policies contributes 0.77 in inculcating entrepreneurial propensity. The research indicated a strong correlation of 0.79 on the contribution of the financial access in inculcating entrepreneurial propensity that would enhance community development. The research also indicated a moderate positive correlation of 0.65 on how human capital contributes in inculcating entrepreneurial propensity for community development. The state of Markets indicated a moderate correlation of 0.63. The findings have been reported in tables. Out of the research findings, the researcher recommended the need for the Government to relook the already existing Government policies and rectify those that are retrogressive to entrepreneurial propensity. The research revealed that although the Government has availed finances, they are available but not accessible due to the rules and regulations of borrowing. Kenya is a Human resource intensive Nation, unfortunately, the existing Human Resource are uneducated and unskilled. The study recommended entrepreneurship training, not only at the Institutional levels but also to the already existing business persons.
Institutional framing for entrepreneurship in sub-Saharan Africa: a case of Uganda
Purpose -The purpose of this study is to examine institutional framing for entrepreneurship in a sub-Saharan context and provide policy input required in solving the daunting problem of the existing low levels and high failure rate of business start-ups in Uganda. Design/methodology/approach -Data were collected from a sample of 659 SMEs from two districts of Uganda in Jinja and Mukono which were scientifically selected for this study. Appropriate analytical data techniques were applied. Findings -Results reveal the presence of implicit regulative, explicit regulative, constitutive cognitive and normative institutions which affect entrepreneurial activities in Uganda. These findings and their policy implications are fully discussed in the paper. Originality/value -This research parallels the Global Entrepreneurship Monitor (GEM) 2004 study that reports high total entrepreneurship activity (TEA) from Uganda and presents the importance of understanding the institutional framing for entrepreneurship. There is a paucity of research addressing institutional framing for entrepreneurship from a sub-Saharan context, creating a need to study and systematically document the prevailing supporting institutions as a framework for promoting entrepreneurship in Uganda.
2018
The number of individuals considering selfemployment as a career option is on the rise due to the high levels of unemployment in Kenya presents many new entrepreneurs with a challenge of both growing and managing the business startups. That notwithstanding, not many business startups operate beyond their third birthday and therefore the purpose of this study is to help determine diverse challenges affecting performance of business start-ups affecting performance of business startups in urban townships in Kenya and in specific West Pokot County. The study sought to specifically determine the influence of skills and competence, technology, legislation and competition on the performance of business startups. The specific objectives to guide the study included, to establish how skills and competence of the entrepreneurs affect performance of business start-ups in West Pokot county, to find out the effect of legislations on performance related to business startups in West Pokot county, to determine the degree to which technology is a challenge to the performance of business startups in West Pokot county and to examine the relationship that exist between competition as well as performance of business start-ups in West Pokot county. The target population was drawn from business start-ups in three major townships in West Pokot County that is Kapenguria, Sigor and Kacheliba. The study adopted a census survey in the three townships and adopted a descriptive survey technique where questionnaires were utilized in the collection of primary data. The raw data obtained was then tabulated, coded and then processed by use of Statistical package for Social Science (SPSS). From the study it is evident that business environment had a significant and positive influence on the performance of the performance of small scale enterprises in West Pokot County, Kenya. Improved and endowment of relevant skills and competency of entrepreneurs, favour legislations by both national and county governments, use of modern technology and capacity building of entrepreneurs and regulated and healthy competition spurs the growth and performance of start-ups in West Pokot County.
An Integrative Framework for Entrepreneurship Research in Africa.docx
Despite the good intentions in sub-Sahara Africa (SSA), previous policy initiatives on entrepreneurship have been disjointed, unambitious, and implemented without commitment and required resources. Furthermore, there has been limited research that can provide insight into the reasons why some of the policy initiatives appear to be successful while others fail. Some scholars have suggested that without a context-specific classificatory guide, policymakers are unlikely to be accurate in their assessment of the growth capabilities of prospective candidates for specific promotion initiatives and this can explain some of the policy failures. This observation has motivated the present paper. Our aim is to provide a framework that helps identify the different contextual dimensions influencing enterprise creation processes in SSA.
Small Enterprise Research
The impact of entrepreneurship and small business activities in Africa has habitually been lower and receives less attention in research. This study aims at investigating the mediation role of innovations on the relationship between entrepreneurial ecosystem approach and productive entrepreneurship. Using panel dataset of 35 African countries, the study contributes to the existing literature in two ways. First, the panel regression findings contribute to the theoretical debate and fill the empirical gap, recent research has been dominated by conceptual works. The findings reveal mixed (positive and negative) and weak insignificant direct influence of eco-factors such as finance, government support and programmes, knowledge, market and culture on productive entrepreneurship. However, their influence is more pronounced when innovations mediate the relationship. Second, it provides new insight to policymakers and practitioners in developing policies and programmes that foster entrepreneurial ecosystems and improved innovation performance for better entrepreneurship development. It concludes with suggestions for future research.