The role of informal sector in the development of an indegenious entrepreneurial ethic: a case study of the carpentry cluster in Kibuye market Kisumu
Abstract
The informal sector is an important aspect in the development of the Kenyan economy.
In Kenya, the sector gained recognition after the 1971 ILO study on employment and
incomes.
The development of a work culture and entrepreneurial ethic has historically been
associated with the Protestant ethic in the West. This cultural feature in the Western
world influenced the rise and subsequent development of a work ethic among
entrepreneurs.
The informal sector in Kenya is a predominant feature in the economy, developed out of
the people's efforts to generate income and employment opportunities in an environment
that is locally defined. tis a very dynamic sector that takes advantage of locally
available resources for purposes of economic survival. With a reluctant government
support in the sector, the development of an entrepreneurial ethic cannot be said to be
slow and undefined. This project looks at the role of the sector in the development of an
indigenous entrepreneurial ethic as an effort of the entrepreneurs within the carpentry
cluster in Kibuye market, Kisumu.
It identifies the nature and scope of the operations within the carpentry cluster in Kibuye
market. It further analyses the roles of the government and other support organizations in
ethic development by looking at levels of their interaction with the operators, within the
sector.
The rational choice theory and the social action theory gave theoretical background of the
study. The two theories look at the actions of the entrepreneurs as influencing social
cohesion hence leading to .an .entrepreneurial ethic development that is unique to the
specific culture.
In data collection, Kibuye market was purposefully selected because of its strategic
geographical and market location. The study population on the other hand comprised of
informalsector entrepreneurs engaged in Carpentry production. The unit of analysiswas
informalsector entrepreneurs engaged in carpentry production and their enterprises.
Non-probability sampling method was used through the use of cluster sampling in
choosing a representative sample. A total of 40 entrepreneurs and 40 workers were
interviewed through the use of a structured questionnaire. The interview schedule
involved a face-to-face interaction. Other methods of data collection involved
observation and the use f secondary data. Both descriptive and inferential statistics have
been used.
The study found the sector to be key in enhancing the development of an indigenous
entrepreneurialethic. The role of government though outlined in policy papers and other
government documents was seen to be minimal by the entrepreneurs. The NGOs on the
other hand were seen as playing a more pronounced role through offering financial
assistance and business education to the entrepreneurs.
Citation
Masters thesis University of Nairobi (2005)Publisher
University of Nairobi Department of Sociology
Description
Master of Arts Degree in Sociology