Determinants of Entrepreneurs Business Innovative Behaviour in Beach Management Units along Lake Victoria, Kenya

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Obere, Eliud E.O.
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Kenyatta University
Entrepreneurship is the mainstream of economic development of the county. Progressive economic development is attainable where entrepreneur’s innovative activities create new business or add value to existing businesses. This is not the case in BMUs along Lake Victoria Region as majority of entrepreneurs in this region start business which are duplicates of the existing ones. Entrepreneurs in Business Management Units along Lake Victoria Region are therefore not innovative. The problem of lack of business innovative behavior is that it creates competition and in the process those businesses which are unable to survive competition close down. The new businesses created in the Lake Victoria Region Beach Management Units are either shops, hawking hardware, fish selling or boda-bodas which are similar to the already existing businesses. Studies that have been done in Beach Management Units a long Lake Victoria region to date have not investigated the determinants of entrepreneur’s lack business innovative behavior. This research undertakes to investigate factors influencing lack of entrepreneur’s business innovative behavior in this region. The specific objectives of the study were to: determine the influence of subjective norm on entrepreneur’s lack of business innovative behavior; investigate the influence of entrepreneur’s competencies on entrepreneur’s lack of business innovative behavior; establish the influence of entrepreneur’s personality traits on entrepreneurs lack of business innovative behavior; and determine the influence of environmental factors on entrepreneur’s lack of business innovative behavior. The study targeted 1500 entrepreneurs in five Business Management Units in along the Lake region. Purposive sampling technique was used to identify these five BMUS while random sampling was used to select 300 entrepreneurs. The choice of Beach Management Units was guided by the following factors: number of years it has been in existence, accessibility and business activities in place, while the entrepreneurs were randomly selected. The study employed descriptive survey study approach. Primary data was collected using structured questionnaires. SPSS package was used for data analysis data. Data was analyzed using descriptive statistics and inferential statistics. Frequency descriptions were used to analyze descriptive statistics. While chi-square and multinomial regression used to analyze inferential statistics. Results were presented using tables. Based on the results, the study found that there was a positive influence of subjective norms, entrepreneur’s competencies, personality traits and environmental factors on entrepreneur’s business innovative behavior. The study recommended that: baseline study to be done to identify potential business opportunities long Beach Management Units, opportunity identification awareness training to be conducted to entrepreneurs along Beach Management Units to help in creation of new business units which are not duplicates, all business activities be registered to make it easy for the Beach Management Units management to regulate the number of businesses. Fourthly, a vetting committee to be appointed to advice the entrepreneurs on business opportunities available.
A Thesis Submited to the School of Business in Partial Fulfilment of the Requirements for the Award of the Degree of Doctor of Philosophy in Enterpreneurship Development, of Kenyatta University