| dc.description.abstract | In order to reduce unemployment rate of 42% and create wealth to reduce poverty, there has been concerted efforts by upcoming and enterprising individuals towards establishing startup businesses which has increase over time but are faced with a major challenge of a seed capital. To the extent that nearly three outoffour startupenterprises stagnate or even contract. A number of startup enterprises does require financial support for operation and expansion. The main source for such financing is the financial institutions who have provisions for loans. However, it has not been easy for the startup firms to access loans from the banks in spite of the fact that the same banks are willing to give loans. The study intends to find out the reasons or considerations for financing business ideas and startup firms in Kenya from international financial institutions’ perspective.
The objective of this study was to determine the factors influencing international financiers in supporting start-up businesses and entrepreneurial ideas in Kenya. This study is significant to current and potential entrepreneurs, government policy makers, researchers, and learning institutions.Allwill benefit from a wealth of information collected, analyzed and documented based on the economic, political and social factors which influence international financiers in supportingstartup firms and entrepreneurialideas in Kenya.
The study adopteda descriptive survey design that focused on both quantitative as well as qualitative statistics to investigate the factors influencing international financiers in supporting startup firms in Kenya. Thetarget population of study comprised of all the 16international financial institutions operating in Kenya and had credit managers as the unit of survey. The main data collection instrument wasa structured questionnaireand thedata collected was coded andanalyzed by descriptive statistics then presented in percentages, tabulations and means.
The results of this study provided an empirical evidence confirming that there is a significant relationship between the predictor variablescombiningavailability of collateral, availability of business plan, government policy andbusiness formalityand international financiers support to startup firms and entrepreneurial ideas in Kenya.
In as so far as recommendations are concerned, they are within the precincts of government policies on business entrepreneurship development to the extent of encouraging and consolidating business registration process including patenting and reasonable fees. As well as ensuring that learning institutions does provide training on entrepreneurship and having partnership arrangementswith such institutions to develop good and attractive business plans from business ideas by upcoming entrepreneurs. The publics or individuals should be facilitated to register and patent their business ideas. Currently, Kenya is experiencing a declining trend in patenting which has a clear indication of decreased entrepreneurship or reduced knowledge on the importance of patenting. When such government policy guidelines are adopted, then financing by international banks will be realized. | en |
