Relationship between personal factors and entrepreneurial behaviour among micro and small scale entrepreneurs in Nairobi
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Date
2005-10Author
Muriithi, James N
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study is concerned with the personal factors that determine entrepreneurial behavior
and was aroused by the fact that whereas studies conducted in other countries have
identified certain factors that condition entrepreneurial behavior, no study appears to have
been conducted in Kenya to find out the extent to which entrepreneurial behavior of
Kenyan entrepreneurs are conditioned by such factors.
To achieve the objective, a sample of 80 entrepreneurs from manufacturing, merchandising
and service sub-sectors was selected from the City of Nairobi. Primary data was collected
by the use of a questionnaire.
The entrepreneurial behaviors investigated were: locus of control, independence and risk
taking, while the influencing factors included formal education, training, experience, birth
order, Parental influence, Religion, ethnicity, gender and achievement motivation.
Data was analysed using multiple regression and correlation analyses. The regression
analyses revealed the following findings:
1. That achievement motivation was a significant predictor of entrepreneurial
behaviour locus of control and independence among the entrepreneurs interviewed,
but it did not influence risk taking. Training was found to influence independence
negatively and the Protestant-religion was found to significantly influence risk-taking
negatively.
2. That the variables, formal education, expenence, birth order, Parental influence,
ethnicity, and gender were not significant determinants of any of the entrepreneurial
behaviour, locus of control, independence and risk taking.
It was hypothesized that entrepreneurs with stronger achievement motives would have an
internal locus of control as compared to those with low levels of achievement motives.
This hypothesis was confirmed (Beta = 0.299, t= 2.469, p<0.05). This indicates that those
respondents who went into business primarily because they preferred it as a career have an
internal locus of control as compared to those who went into business for other reasons.
It was also hypothesized that entrepreneurs with stronger achievement motives would show
greater tendency towards independence as compared to those with low levels of
achievement motives. The hypothesis was confirmed (Beta = 0.282, t=2.457, p<0.05, d.f =1177). This indicates that those respondents who went into business primarily because they
preferred it as a career have greater tendency towards independence as compared to those
who went into business for other reasons.
There was also a significant relationship between being a Protestant and risk taking
behaviour as shown by the high t-value, (t = - 3.233, -p.< .05). This indicates that those of
the Protestant faith have a lower propensity towards risk- taking.
The conclusion reached was that the independent variables (formal education, experience,
birth order, Parental influence, ethnicity, and gender) were not statistically significant
determinants of any of the entrepreneurial behaviors analyzed (locus of control,
independence and risk taking), except, for motivation, training and religion that had some
influence on locus of control, independence and risk taking.
Citation
MBAPublisher
University of Nairobi School of Business, University of Nairobi
Description
Master of Business Administration (MBA)