PHD -An Assessment Of The Entrepreneurship Policy Foundations Of The Youth, Women, & Uwezo Funds In - AN ASSESSMENT OF THE ENTREPRENEURSHIP POLICY

PHD -An Assessment Of The Entrepreneurship Policy Foundations Of The Youth, Women, & Uwezo Funds In

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Unformatted text preview: AN ASSESSMENT OF THE ENTREPRENEURSHIP POLICY FOUNDATIONS OF THE YOUTH, WOMEN, AND UWEZO FUNDS IN KENYA MARGARET WARUGURU DOCTOR OF PHILOSOPHY (Entrepreneurship) JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY 2018 An Assessment of the Entrepreneurship Policy Foundations of the Youth, Women, and Uwezo Funds in Kenya Margaret Waruguru A Thesis Submitted in Partial Fulfillment for the Degree of Doctor of Philosophy in Entrepreneurship in the Jomo Kenyatta University of Agriculture and Technology 2018 DECLARATION This thesis is my original work and has not been presented for a degree in any other University. Signature …………………………………………… Date …………………………… Margaret Waruguru. This thesis has been submitted for the examination with our approval as the University Supervisors. Signature …………………………………………… Date …………………………… Prof. Henry Bwisa (PhD) JKUAT, Kenya Signature …………………………………………… Date …………………………… Prof. J.M. Kihoro (PhD) CUK, Kenya ii DEDICATION This work is dedicated to the love of my life, my husband Dickson and my lovely daughters Shekinah and Emunah. Your love and encouragement has inspired me. I value you very much. iii ACKNOWLEDGEMENT It is with sincere gratitude and heartfelt pleasure that I wish to acknowledge all those individuals who in one way or another given professional, moral, or financial support in the realization of this research proposal. Innumerable thanks go to Prof. Bwisa and Prof. Kihoro for their guidance throughout the whole process, and their availability any time I needed to consult. I wish to acknowledge the University for awarding me a full scholarship to undertake this program. I highly appreciate. Special thanks to my husband who has accorded me all the support I have needed throughout my studies. Thanks to my daughters Shekinah and Emunah for their cooperation during the preparation of this research project. Lastly I wish to acknowledge my parents, Mr. and Mrs. Maina, for the sacrifices they have made to make sure that I could access an education. God bless you all. iv TABLE OF CONTENTS DECLARATION ............................................................................................................. ii DEDICATION ................................................................................................................ iii ACKNOWLEDGEMENT ..............................................................................................iv TABLE OF CONTENTS................................................................................................. v LIST OF TABLES ..........................................................................................................ix LIST OF FIGURES ...................................................................................................... xii LIST OF APPENDICES ............................................................................................. xiii ACRONYMS/ABBREVIATIONS ..............................................................................xiv DEFINITION OF TERMS ......................................................................................... xvii ABSTRACT ...................................................................................................................xix CHAPTER ONE .............................................................................................................. 1 INTRODUCTION ............................................................................................................ 1 1.0 Overview .................................................................................................................. 1 1.1 Background of the Study.......................................................................................... 1 1.2 Statement of the Problem ....................................................................................... 14 1.3 Objectives of the Study .......................................................................................... 14 1.4 Research Questions ................................................................................................ 15 1.5 Justification of the Study........................................................................................ 15 v 1.6 Scope of the Study..................................................................................................16 1.7 Limitations of the Study .........................................................................................16 CHAPTER TWO............................................................................................................18 LITERATURE REVIEW ..............................................................................................18 2.1 Introduction ............................................................................................................18 2.2 Theoretical Review ................................................................................................18 2.3 Conceptual Framework ..........................................................................................31 2.4 Empirical Review ...................................................................................................33 2.5 Research Gaps ........................................................................................................58 2.6 Summary of the Reviewed Literature ....................................................................60 CHAPTER THREE .......................................................................................................63 RESEARCH METHODOLOGY..................................................................................63 3.1 Introduction ............................................................................................................63 3.2 Research design ......................................................................................................63 3.3 Target population ...................................................................................................65 3.4 Sampling Frame .....................................................................................................66 3.5 Sampling Techniques and Sample Size .................................................................66 3.6 Pilot Testing ...........................................................................................................67 3.7 Data Collection Methods ........................................................................................67 vi 3.8 Data Analysis and Presentation.............................................................................. 68 CHAPTER FOUR .......................................................................................................... 72 RESEARCH FINDINGS AND DISCUSSIONS.......................................................... 72 4.1 Introduction ............................................................................................................ 72 4.2 Response rate ......................................................................................................... 72 4.3 Personal Information .............................................................................................. 73 4.4 Process of Formulation of the Funds ..................................................................... 78 4.5 Motivation Component of Entrepreneurship Policies in the Funds ....................... 84 4.6 Opportunity Component of Entrepreneurship Policies .......................................... 98 4.7 Skills Component of Entrepreneurship Policies in the Fund ............................... 118 4.8 Entrepreneurship Policy Foundations Comprehensiveness Scores...................... 139 4.9 Analysis of Data from Ministry of Industry, Trade, and Cooperatives ............... 150 4.10 Analysis of Data from KICD (Kenya Institute of Curriculum Development) ... 154 4.11 Entrepreneurship Policy Typologies .................................................................. 155 CHAPTER FIVE .......................................................................................................... 161 SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS ............................ 161 5.0 Introduction .......................................................................................................... 161 5.1 Summary of the Research Findings ..................................................................... 161 5.2 Conclusion ........................................................................................................... 167 vii 5.3 Recommendations of the Study............................................................................170 5.4 Recommendations for Future Research ...............................................................172 REFERENCES .............................................................................................................174 APPENDICES ..............................................................................................................184 viii LIST OF TABLES Table 2.1: Features of SME versus Entrepreneurship Policy .......................................... 22 Table 2.2: A Typology of Public Policy toward Small Business .................................... 51 Table 3.1: Entrepreneurship Policy Foundations Comprehensiveness Scale.................. 71 Table 4.1: Response Rate ................................................................................................ 73 Table 4.2: Age of the Respondents.................................................................................. 75 Table 4.3: Post-secondary education ............................................................................... 76 Table 4.4: Work experience ............................................................................................ 77 Table 4.5: Origin of the funds ......................................................................................... 82 Table 4.6: A Stated Objective to Promote a Culture of Entrepreneurship ...................... 84 Table 4.7: Events that profile entrepreneurship and provide start-up information ......... 86 Table 4.8: Recognition of Entrepreneurs through National High Profile Awards .......... 88 Table 4.9: Engagement of Mass Media in Promotion of Entrepreneurship .................... 91 Table 4.10: Engagement in Activities to Nurture the Media........................................... 93 Table 4.11: Budgetary Allocations for Entrepreneurship Promotion Activities ............. 94 Table 4.12: Efforts to Track Attitudes of the Population towards Entrepreneurship ...... 96 Table 4.13: A stated objective to address the opportunity structure ............................... 99 Table 4.14: Initiative to Reduce or relax Administrative Burden for New Firms......... 101 ix Table 4.15: First’ or ‘One Stop Shops’ or Web Portals to Provide Business Start-up Information, Assistance and Advice ..............................................................................104 Table 4.16: Facilitation of Mentor Programs for new entrepreneurs and growth firms 106 Table 4.17: Partnership with private sector organizations and NGOs to deliver entrepreneurship training programmes...........................................................................108 Table 4.18: Partnership with Other Organizations in Business Incubation ...................111 Table 4.19: Efforts to redirect supply of capital to new firms .......................................113 Table 4.20: Efforts to redirect supply of capital to individual entrepreneurs ................113 Table 4.21: Funding for special seed programmes and pre-commercialization of promising technology .....................................................................................................116 Table 4.22: Entrepreneurship skills audit for the beneficiaries .....................................119 Table 4.23: Training programmes present .....................................................................121 Table 4.24: Training programmes in the YEDF ............................................................121 Table 4.25: Training programmes in the WEF ..............................................................122 Table 4.26: Training programmes in the Uwezo Fund ..................................................122 Table 4.27: A national study on the entrepreneurial abilities ........................................124 Table 4.28: Studies on the entrepreneurial abilities among YEDF beneficiaries ..........124 Table 4.29: Studies on the entrepreneurial abilities among WEF beneficiaries ............125 Table 4.30: Studies on the entrepreneurial abilities among Uwezo Fund beneficiaries 126 x Table 4.31: Study results used to lobby the government on inclusion of entrepreneurship in the national curriculum .............................................................................................. 127 Table 4.32: Sponsorship of students’ business plan competitions ................................ 130 Table 4.33: Creating awareness of entrepreneurship as a career option to students ..... 132 Table 4.34: Support for extra-curricular entrepreneurial student activities .................. 134 Table 4.35: Budgetary allocations for EET in YEDF ................................................... 137 Table 4.36: Budgetary allocations for EET in WEF ..................................................... 137 Table 4.37: Budgetary allocations of EET in Uwezo Fund........................................... 138 Table 4.38: Entrepreneurship Policy Foundations Comprehensiveness Scores ............ 147 Table 4.39: Overall Scores ............................................................................................ 149 Table 4.40: Entrepreneurship policy typology features ................................................ 156 xi LIST OF FIGURES Figure 2.1: Entrepreneurship policy foundations ............................................................24 Figure 4.1: Gender of the Respondents ...........................................................................74 xii LIST OF APPENDICES Appendix I: Interview Guide for Senior Managers at YEDF, WEF, and Uwezo Funds ........................................................................................................................................ 184 Appendix II: Interview Guide for Ministry of Industry, Trade, and Cooperatives Officials .......................................................................................................................... 188 Appendix III: Interview Guide for Kenya Institute of Curriculum Development Officials .......................................................................................................................... 189 xiii ACRONYMS/ABBREVIATIONS APEC Asia-Pacific Economic Cooperation ASK Agricultural Society of Kenya BPCs Business Plan Competitions CDF Constituency Development Fund CEO Chief Executive Officer DANIDA Denmark’s Development Corporation DFI Development Finance Institutions EDS Entrepreneurship Development Systems EE Entrepreneurship Education EET Entrepreneurship Education and Training EPC Export Promotion Council EPZ Export Processing Zones ERS Economic Recovery Strategy EU European Union GDP Gross Domestic Product GEM Global Entrepreneurship Monitor GEP Global Entrepreneurship Program GES Global Entrepreneurship Summit xiv GOK Government of Kenya ICBE Investment Climate and Business Environment IDRC International Development Research Centre ILO International Labour Organization JA Junior Achievement JKUAT Jomo Kenyatta University of Agriculture and Technology KEBS Kenya Bureau of Standards KIBT Kenya Institute of Business Training KICD Kenya Institute of Curriculum Development KIE Kenya Industrial Estates KIM Kenya Institute of Management KIRDI Kenya Industrial Research and Development Institute KRA Kenya Revenue Authority MFIs Micro Finance Institutions MSEA Micro and Small Enterprise Authority MSME Micro and Small and Medium Enterprises ‘MOS’ Motivation, Opportunity and Skills NACOSTI National Council of Science Technology and Innovation NUTEK Swedish Development Agency xv OECD Organization for Economic Co-operation and Development PAs Public Authorities R&D Research and Development SACCOs Savings and Credit Cooperative Organization SME Small and Micro Enterprises TIVET Technical Industrial Vocational and Entrepreneurship Training UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme WEF Women Enterprise Fund YAGPO Youth Access to Government Procurement Opportunities YEDF Youth Enterprise Development Fund xvi DEFINITION OF TERMS Assessment: The act of judging or deciding the amount, value, quality, or importance of something (Cambridge Advanced Learner’s Dictionary, 2016) Entrepreneurs: An individual who seeks to transform or revolutionalize the pattern of production by exploiting an invention or’ more generally, an untried technological possibility for producing an old one in a new way, by opening up a new source of supply materials or a new outlet for products (Bwisa, 2011). Entrepreneurship: “The capacity and willingness to undertake conception, organization, and management of a productive venture with all attendant risks, while seeking profit as a reward (Bwisa, 2011). Entrepreneurship Policy: Policy measures taken to stimulate entrepreneurship, which are aimed at the pre-start, the start-up and post-start-up phases of the entrepreneurial process, and are designed and delivered to address the areas of motivation, opportunity and skills with the primary objective of encouraging more people to start their own businesses (Storey, 2008) Entrepreneurship policy foundations: These are conditions necessary for entrepreneurship to flourish that is the opportunity and support to pursue a business idea (opportunity), a propensity to enterprise (motivation), and the ability to enterprise (skills) (Lundstrom & Stevenson, 2005) Entrepreneurship policy typology: A system of classification entrepreneurship (Storey 2008) xvii for policies in Motivation: A propensity to enterprise, involving such characteristics as an urge for excellence, a willingness to bear risk, and a desire to be independent (GEP, 2011) Opportunity: This is access to the startup supports needed, such as information and ideas, counselling and advisory services, business contacts, capital and encouragement, in an enabling regulatory and policy environment (GEP, 2011) Skills: The ability to enterprise which includes the technical and business capabilities required to start and manage a business must exist (GEP, 2011) xviii ABSTRACT Entrepreneurship has been recognized as a prime catalyst for job creation, and there is evidence of a strong upward trend line between entrepreneurship and employment growth. In Kenya, this led to the establishment of funds aimed at financing small enterprises with a major aim of creating employment. Among these funds are YEDF, WEF, and Uwezo Fund. However research shows that these funds have not lived to fulfill the purpose for which they were created as the unemployment rates still remain high especially among the youth. The question that begs for an answer is whether these funds are founded on an entrepreneurship policy. The major objective of this study was to assess the entrepreneurial foundations of the Youth Enterprise Development Fund, Women Enterprise Fund, and Uwezo fund. The specific objectives were to assess whether the process of formulation of the funds was entrepreneurial; to assess the motivation component of entrepreneurship policy in the funds; to assess the opportunity component of entrepreneurship policy in the funds; to assess the skills component of entrepreneurship policy in the funds and; to verify the entrepreneurial policy typology that guided the establishment of the funds. The research took a qualitative approach and adopted an explo...
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