ORGANIZATIONAL FACTORS INFLUENCING THE GROWTH OF YOUTH OWNED ENTERPRISES AS MODERATED BY GOVERNMENT POLICIES IN KABARNET TOWN, BARINGO COUNTY
Abstract
Youth enterprise is the application of entrepreneurial skills, innovation and creativity into the world of business. In Kenya many youth enterprises continue facing many challenges due to ineffective promotion mechanisms. The purpose of the study was to establish the organizational factors influencing growth of YOEs (YOEs) in Baringo County. The objectives of the study were to explore the influence of financial support on the growth of YOEs; determine the influence of entrepreneurship training on the growth of YOEs; determine the influence of information communication technology on the growth of YOEs and to establish the influence of government policies on the growth of YOEs in Baringo County. The study was guided by two theories namely the resource based theory and the human capital theory. The study employed the descriptive research design. The study population comprised of 270 YOEs operators in Kabarnet town, Baringo County. Stratified random sampling was applied in selecting the sample size. A sample size of 73 respondents was determined using Yamane’s formula. Primary data was collected using questionnaire. Quantitative data was analyzed using descriptive statistics and inferential statistics based on the study’s objectives. Frequency tables, figures and charts were used to represent the results and the study findings. Based on the study findings, the study concludes that there was a positive relationship between financial support and growth of YOEs in Kabarnet town. It is also concluded that entrepreneurial training such as business seminars and workshops influenced youth awareness on how to improve performance of their businesses; hence, there was a positive relationship between entrepreneurship training and the growth of YOEs. The study also concludes that the growth of YOEs depended on favourable policies such as taxation, patenting laws and licensing regulations on YOEs. It is also concluded that the internet connection helped many youth businesses to enhance their success. Hence, there was a positive relationship between information communication technology and growth of YOEs in Kabarnet town. Generally, the study concludes that financial support, entrepreneurship training, information communication technology and government policies accounted for the variance in the growth of YOEs in Kabarnet town. The study recommends that financial support programmes should be redesigned to overcome the weaknesses that hinder their accessibility by the youth. The government should also relax rules regarding business policies aimed at supporting youth businesses. Entrepreneurship training programmes should be rolled out mostly for the youths to equip the youth with skills to run their own enterprises.
Downloads
References
Ahiawodzi, A. &Adade, E. B. (2013). Issues in SME Development in Ghana and South Africa. The Built and Human Environment Review, 3(1), 49-62.
Akwalu, R. W. (2014). Issues Impacting on Growth of Women Owned Enterprises in Kenya. Paper presented at Shifting Gears in Women’s Enterprises Conference, Durham University, UK.
Alam, J. & Hossan, M. (2003). Linking Between Franchising Networks for Entrepreneurship and Economic Development-Looking For a New Model.
Arendt, N. H. (2014). Dissecting behaviours associated with business failure: a qualitative study of MSE owners in Malaysia and Australia. Asian Social Science, 5(9), 98-104.
Barney, A. (2014). The Essence of Small Business, UK: Prentice Hall.
Barney, B. &Clark, I. (2016). Challenges of youth unemployment in Nigeria: Effective career guidance as a panacea. African Research Review, 7(1), 307-321.
Barney, P. &Hesterly, W. (2013). Factors influencing performance of youth owned small and medium enterprises in Africa, Journal of Business Venturing, 8,1, 59-73.
Becker, G. (1964). Human capital: A theoretical and empirical analysis with special reference to education. Chicago: The University of Chicago Press.
Birundu, D. G. (2015). Self-Employment: more may not be better, Swedish Economic. Policy Review, 11(2), 15-69.
Bouazza, N., K., Ardjouman, E. &Abada, J. (2015). Global Entrepreneurship Monitor Executive Report. Babson: London.
Bryman, A. (2012). Social research methods, Oxford University Press
Caruabna, F. (2017). Being real about youth Entrepreneurship in Eastern and Southern Africa, Implication for Adults Institutions and Sector Structures, Working Paper No 72, ILO, Geneva
Chigunta, F. (2013). Youth Entrepreneurship: Meeting the Key Policy Challenges: Wolfson College: Oxford University.
Chigunta, F. M. (2012). Understanding SMEs and creating job: A look at Youth livelihoods in informal settlements in Zambia: Study
Chimombo, S. (2017). Electronic commerce: a study of small and medium sized enterprises, Journal of Enterprise Management, 28 (5), 468-492.
Connell, D., &Rebecca, P. (2013). The policy Environment for Promoting Small and Medium Sized Enterprises in Ghana and Malawi: Manchester: University of Manchester.
Cooper, U. & Schindler, K. (2013). Research Methods for Business: A Skill Building Approach, UK: John Wiley.
Creswell, J. W. (2012). Qualitative inquiry and research design: Choosing among five approaches (3rd Ed ed.). Lincoln, NB: Sage Publications
Deakins D. (2015). Enterprise education: The role of Head Teachers,International Entrepreneurship and Management Journal 1: 241-263.
Derbile R. (2003).Towards a Youth Employment Strategy, Report to the United Nations on Youth unemployment, Washington D.C.
Eisenhardt, S. A. & Munroe, P. (2014). A comparative analysis of risks and returns of running SMMs in North and Central Nigeria, Journal of Social Science, 15(1), 7-15.
Essayed, M. (2015). African Youth Development and Empowerment: Sharing Experiences that Work, African Union Commission, Addis Ababa.
Florin, J. R. & Schultze, E. J. (2014). Growth and Profitability in Small and Medium Sized in Australia, AGSE: Swinburne University of Technology.
Geringer, P. (2013). The growth of firms in theory and in practice, Competence, governance and entrepreneurship, 1, 168-186.
Gimeno, I. (2014). An exploration of owner manager problem solving practices in small firms; the central Vancouver Island experience, University of Hertfordshire, Canada.
Giroux, R. (2007). Youth and employment: A public policy perspective, Development Bulletin, 55, 7-11.
Greener, S. (2008). Business Research Methods, Ventus Publishing ApS
Gudda, R. M., &Ngoze, E. (2017). Capabilities creation in new and established organizations. working paper, Georgetown University, Washington DC.
Henrick, F. (2018). Enterprise growth and survival in Vietnam: does government support matter? The Journal of Development Studies, 45(7), 1048-1069.
Heshmati, R, M. (2014). Entrepreneurship. Boston: McGraw-Hill.
Hochwarter, U. (2016). Stimulating Youth Entrepreneurship: Barriers and incentives to enterprise start-ups by young people, ILO, Geneva, Switzerland.
James, M. (2017). The Challenges of Young Entrepreneurs in Ghana, CIPE, Washington. D.C.
Johnson, M, (2014). Management of business challenges among small and micro enterprises in Nairobi Kenya, Journal of Business Management, 2(1).
Kamau, A. W. (2013). Factors influencing adoption of e-commerce among youth entrepreneurs in Nakuru town, Kenya.
Kanyari, J. W., & Namusonge, G. S. (2014). Factors that influence the Kenyan youth entrepreneurs towards the youth enterprise development fund in Gatundu South District, Kenya, International journal of Education and Research, 1(5), 97-128.
Karanja, K. L. (2014). Small Business Entrepreneurship: A Sourcebook. Archway.
Karlan, M., & Vildiva, S. (2013) Youth livelihood and Enterprise Activities in Malawi. Report to IDRC Canada.
Kihinde, J. (2013). Government Regulations and Procedures and the Establishment of SMEs in Rural Areas in Kenya, Journal of Emerging issues in Policy Studies, 3(6): 816-821
Kiiti, B. W., &Hennink, W. L. (2016). Financing of small and medium enterprises in Kenya: A study of selected SMEs, International journal of current research, 4(4), 303-309.
Kimando, L. N., Njogu, G. W., & Kihoro, J. M. (2013). Factors affecting the success of youth enterprise development funded projects in Muranga County. International Journal of Business and Commerce, 1(10), 61-81.
Kinyua, M. S. (2014). Management of Business Challenges among Small and Micro-Enterprises in Nairobi-Kenya, Journal of Business management; 2(3), 309-321.
Kiveu, K. & Ofafa, L. (2014). Factors influencing the growth of youth owned Micro and small enterprises in Tigania west division, Meru County, Kenya, Journal of American Academy ofBusiness, 8 (2).
Korir, J. T. (2013). Factors Affecting Growth of Youth-Owned Agro-Based Small Business in Yatta Sub County. Strategic Journal of Business and Change Management, 2(1).
Kothari, C. R. (2004). Research Methodology: Methods and Techniques (2nd Ed). New Age Publishers.
Langat, J. L. (2013). Is Youth Entrepreneurship a Necessity or an Opportunity? Sustainable Development Department Technical Papers Series, Inter-African Development Bank Washington, D. C.
Macharia, J. G. (2013). Small Business Management: An Entrepreneurial Emphasis. London: Thomson South Western
Maina, K. J. (2014). The role of youth enterprise development fund on growth of micro and small enterprises in Kenya: a case of Kiharu constituency, Murang’a County. Unpublished M.B.A. Thesis, Kenyatta University.
Maisiba, E. O. (2014). The effects of the Youth Enterprise Development Fund on the promotion of international trade in Kenya: a case of youth groups in Nairobi County, Kenya; Doctoral dissertation, University of Nairobi.
Makadok, E. K. (2017). Life cycle characteristics of small professional service firms. Journal of Small Business Management, 44(3), 461-473.
Mao, H. (2017). Review of Growth Enterprise Theories. International Journal of Business and Management. Vol. 4, No .8
Mashenene, N. (2014). Entrepreneurship Development: An Operational Approach. Bangladesh: The University Press Limited.
Matovu, B. &Birungi, W. (2014). Factors that hinder the growth of small businesses in South African townships, European Business 23(6) 550-569.
Mayoux, P. M. (2017). Policy and Strategic Options for Enhancing the Performance of Youth-Run-Enterprises, Investment Climate and Business Environment Research Fund.
Mian, J. & Smith, D. (2015). Innovative coping mechanism in Youth Owned Businesses, , Journal of emerging trend in economies and management science, 4 (27), 226-232.
Mugenda, A.,& Mugenda, M. (2003). Research Methods: Quantitative and Qualitative Approaches, ACTS Publishers, Nairobi.
Musyoka, J. T. (2013). Making the energy transition in rural East Africa: Is leapfrogging an alternative?. Technological Forecasting and Social Change, 68(2), 173-193.
Mwangi, C. (2011). The time bomb that is millions of Kenya jobless Youths, Standard and Digital News Kenya Retrieved form www.standardmedia.coke.
Mwangombe, F, M. (2014). The Role of Government Policy in Enhancing Technology Innovation and Creativity among Micro, Small and Medium Entrepreneurs, Paper presented at the JKUAT Scientific, Technological and Innovation Conference, JKUAT.
Nabintu, P. (2014). A conceptual history of entrepreneurial thought. Journal of management history, 12(1), 12-35.
Namatovu, R., Dawa, S., Mulira, F., Katongole, C., & Nyongesa, S. (2013). Rural Youth Entrepreneurs in East Africa: A view from Uganda and Kenya. ICBE-RF Research Report No. 32, 12.
Ndubi, S. K. (2016). Youth Fact Book: Infinite Possibility or Definite Disaster? Nairobi: Institute
Newbert, N. (2016). Creating jobs through SMEs. Business Daily.
Njoroge, P. M. (2017). Youth and Self-Employment in Developing Countries: A Critical Analysis of Youth Focused Self-Employment Promoting Policy in Kenya, PERI: University of Massachusetts.
Nsubuga, J. N. (2014). Factors influencing growth of group owned small and medium enterprises: a case of one village one product Enterprises, International Journal of Education and Research, 8(1): 12-15.
Ochola, S. B. (2014). Constraints Facing the Micro and Small Enterprises: A case of study of Selected Small Enterprises in Mwiki, Kasarani, Unpublished MBA, Thesis, Kenyatta University.
Oduol, S. (2014) Putting the Young in Business; Policy Challenges for Youth Entrepreneurship in Siaya County. The LEED Programme, Territorial Development Division, Paris
OECD (2017). Making Poverty Reduction Work: OECD´S role in development partnership, OECD, Paris.
Okirenke, F. O. (2015). The value of creativity and innovation in entrepreneurship, Journal of Asia Entrepreneurship and Sustainability, 3(2), 1.
Okurut, F. N., & Ama, N. O. (2014). Assessing Factors That Affect Women and Youth Micro-Entrepreneurs in Botswana1, International Journal of Economics and Management Sciences, 2(1), 306.
Okwuonu, K. O. (2014). Factors influencing performance of youth group micro and small enterprises in Kisumu west district, Kisumu County, Unpublished thesis, Kenyatta University.
Omondi, B.A.N (2013). Small and Medium Enterprises in Kenya: Problems and prospects Unpublished PhD dissertation, University of Nairobi.
Onueke, A. A. (2014). Factors influencing performance of youth owned micro, small and medium enterprises (MSME) in Nigeria, International Journal of Social Sciences and Entrepreneurship, 1(3), 263-272
Osei-Assibey, W. Y. (2014). A General Guide to writing Research Proposal and report. A handbook for beginning Researchers, Makerere University Press: Kampala
Osunde, W. E. (2014). A survey of factors affecting the growth of Micro and Small Enterprises in Kenya: A case study of Uhuru Market in Nairobi, Unpublished MBA. Thesis, Kenyatta University.
Oyatoye, E., &Arileserre, S. P. (2013). Growth determinants of micro-businesses in Canada. Ottawa: Small Business Policy Branch, Industry Canada.
Peteraf, M. &Barney, D. (2003). The Quest for Rural Enterprise Support Strategies that Work: The Case of the Mineworkers Development Agency, Small Enterprise Development Journal, Vol.13, No.14.
Praag, M. &Versloot, V. (2016). Serial Entrepreneurship and Born-Global New Ventures, Journal of Sustainable Development in Africa, 12(6) 233-246.
Renny, P. (2014). Knowledge management and organizational competitiveness: A framework for human capital analysis, Journal of Knowledge management, 7(3), 82-91.
Rodklif, Y. M. (2016). Difficulties and Constraints Faced by Women-Led Microenterprises in Pursuing their Desired Levels of income and Growth, Doctoral dissertation, University of Nairobi.
Ronge J., Ndirangu S., &Nyangito, T. (2015). A Study on Youth and Women Entrepreneurs Preparedness in Kenya, TRISTART: KIM Publication.
Saunders, M., Lewis, P., & Thornhill, A. (2015). Research Methods for Business Students, Fifth edition, London: Prentice Hill
Schnurr, J. & Newing, S. (2016). A Conceptual and Analytical Framework for Youth Enterprise and Livelihood Skills Development, IDRC: Canada.
School, U. (2006). Stimulating Youth Entrepreneurship: Barriers and incentives to enterprise start-ups by young people, ILO, Geneva, Switzerland.
Seibert, K. & Karimer, D. (2017). Factors affecting the strategic growth of Information Communication Technology in Kenya, United States International University, Nairobi.
Sharu, J. &Guyo, L. (2015). Determinants of Small Business Growth Constraints in a Sub-Saharan African, Journal ofAdvanced Management, 1(2) 76-94.
Shiu, V. (2014). The journey towards productive entrepreneurship: A theoretical review of the entrepreneurial landscape in Zimbabwe, International Journal of Economics, Commerce and Management, 2(7).
Shubita, L. R., & Alsawalhah, C. J. (2013). Dimensions of Citizenship and Opportunities for youth development, Applied Developmental Science, 6(4), 264-272.
Simolor, J. (2017). Small Business: A phenomenological study of Small Business failure in Maryland. University of Phoenix: Phoenix Arizona.
Simpeh, J. (2014). Youth Entrepreneurship and the ILO: Note on practices and lessons learned. Small Enterprise Programme, International Labour.
Sogwe, A. G., Gicharu, S. P., &Mahea, R. (2014). An investigation into youth entrepreneurship in selected South African secondary schools: An exploratory study. Southern African Business Review, 15(3), 46-75.
Sun, R. (2018). Secretarial of the Entrepreneurship Group Youth Employment Network: Paper on decent work for young people, roadmap for youth entrepreneurship: Geneva.
Ubom, J. S. (2014). The Roots of Entrepreneurship and Labour Demand: Individual Ability and Low Risk Aversion, Economica, 68(269), 45-62.
Wasike, G. (2014). Enterprise-Based Youth Employment Policies: Strategies and Programmes, ILO: Geneva.
Yamane, T. (1973). Statistics: An Introductory Analysis, New York: Harper and Row.
Zain, E. A. (2016). Action-based entrepreneurship education. Technovation, 26(2), 185-194.
Copyright (c) 2019 IJRDO - Journal of Business Management (ISSN: 2455-6661)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Author(s) and co-author(s) jointly and severally represent and warrant that the Article is original with the author(s) and does not infringe any copyright or violate any other right of any third parties, and that the Article has not been published elsewhere. Author(s) agree to the terms that the IJRDO Journal will have the full right to remove the published article on any misconduct found in the published article.
