Entrepreneur’s Innovativeness on Access to Venture Capital by Small and Medium Enterprises in Nairobi City County, Kenya
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Date
2019-11
Authors
Muchira, Bancy Wawira
Jagongo, Ambrose
Simiyu, Eddie
Journal Title
Journal ISSN
Volume Title
Publisher
Stratford Peer Reviewed Journals and Book Publishing
Abstract
Despite the effort made by the government of Kenya to support the growth of SME sector by
creating enabling environment through appropriate legal and regulatory procedures, and in spite
the fact that banks have recently made micro-credit accessible to MSEs (MESPT, 2011), there is
no indication that the sector is growing. Empirical evidence shows that most of these enterprises
fail due to poor/lack of access to finance. Access to venture capital by the small and medium
enterprises could be a plausible alternative but unfortunately research has pointed out that
majority of the enterprises do not access venture capital financing, which is considered an
important option for small and medium enterprises trying to grow. This study therefore sought to
investigate the effect of entrepreneur’s innovativeness on access to venture capital by small and
medium enterprises in Kenya. The study adopted the explanatory non-experimental research
design and positivism philosophy guided the study. Target population of the study was 334
Small and medium size enterprises ranked by KPMG between 2008 and 2017 in their annual
survey. Proportionate random sampling technique was used to select the firms. Data was
collected by use of questionnaire, using drop and pick method. Both descriptive statistics and
inferential statistics were used to analyze the data. Nested multinomial logit model was used. The
results reveal that the influence of an entrepreneur’s innovativeness on access to venture capital
financing is statistically significant. From the findings, it is recommended that SMEs should
continue investing in enhancing entrepreneurial innovativeness as it increases the propensity of
their enterprises from accessing venture capital financing
Description
Research Article
Keywords
Entrepreneurs, Innovativeness, Access, Venture Capital, Financing, SMEs, KPMG
Citation
Stratford Peer Reviewed Journals and Book Publishing Journal of Finance & Accounting Volume 3||Issue 4||Page 1- 20||November||2019| Email: info@stratfordjournals.org