PHD-Department of Applied Economics
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Browsing PHD-Department of Applied Economics by Subject "Entrepreneurship -- Kenya -- Eldoret Municipality"
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Item Cultural and social determinants of entrepreneurial behaviour among small enterprise owners in eldoret municipality, Kenya(2011-08-16) Korir, Michael Kirwa; Kibas, Peter; Thoruwa, T. F. N.The role of culture and social factors on the development of entrepreneurship is an emerging theme of research but results remain ubiquitous. Others have concluded that an individualistic culture fosters entrepreneurial behaviour while collectivist culture retards them. Others have argued that culture and socialisation process does not have any bearing on entrepreneurial behaviour. Besides, empirical studies that forge these propositions in an African setting, and specifically in Kenya, are scanty. This study examined cultural and social determinants of entrepreneurial behaviour among smallscale entrepreneurs within Eldoret Municipality in Kenya. It anchored on hypotheses that relate several cultural and social factors to the development of entrepreneurial mindset, motives and orientations as components of entrepreneurial behaviour process. The study employed a triangulation of descriptive and explanatory designs. Using cluster, simple random and systematic sampling techniques with the support of key informant interviews, a cross-sectional survey of 387 entrepreneurs running small businesses within Eldoret municipality was conducted. A self-administered questionnaire was used to collect primary data. Data was analysed using descriptive and inferential statistical tools. Specifically, factor analysis was used to validate and construct indices for the preconceived variables while Analysis of Variance and Structural Equation Modelling in the form of Path analysis were utilised to test hypotheses. Theory testing results show that the Hofstede's cultural value dimensions remains conceptually valid, albeit explaining a small proportion of variance (38.4%); thus suggesting some extension. Similarly, the 'Push-Pull' theory of entrepreneurial motives (57.37% of variance explained) and the Entrepreneurial Orientations model (48.0% of variance explained) remain valid in explaining entrepreneurial behaviour in an African developing country context. Results of hypothesis testing indicate that entrepreneurs from the six referenced ethnic groups exhibited significant (P<.05) varying degrees in business start-up motives variables and propensity to employ, but generally displayed similar post start-up orientations. Other significant (p<.05) sociomicro factors that were found to have moderating effects on entrepreneurial behaviour include level of education, gender, religion, parental occupation, age and marital status. Paradoxically, findings from Structural Equation Models show a positive but not significant causal relationship between cultural value dimensions and business start-up motives but a negative causal relationship between cultural value dimension and post start-up orientations. Specifically, cultural value dimensions of Collectivism, Long-term orientation and Orthodoxy appear to impede entrepreneurial behaviour. While the presence of role models was found to have a positive effect on all the stages of entrepreneurial behaviour process, the bonding dimensions of social capital seem to impede its development. These findings hold implications for the intensification of entrepreneurship education and training, mooting of entrepreneurship policies that target the youth, retiring and women groups, more involvement of religious organisation in entrepreneurship development, and a call for cultural and social transformation, if the goal of building an entrepreneurial economy and culture in Kenya is to be realised. Future research should explore more linkages between culture and entrepreneurship using longitudinal research designs. The validation of measurement tools and use of case approach in exploring effects of role models is also open for further research