13th Annual International Management Conference Proceeding

2.1 Dynamics of Entrepreneurial Development
According to Pareek and Rao (1978), different key factors influence entrepreneurship
(Figure II). Among them are:
2.1.1 Individual
This is the most important element in entrepreneurship that makes the decision to generate entrepreneurship
in society (Schumpeter, 1970). The individual initiates, establishes, maintains, expands enterprises and strives
to make it a success. It is necessary, therefore, to establish what influences the individual. KIA mainly deals
with individuals at senior and middle management levels from the public, NGO and private sectors.
2.1.2 Socio-cultural Factors
These include: family background, behaviour, norms, attitudes and values of immediate social circle are a
function of the socio-cultural milieu, and contribute to entrepreneurial development. They influence
development of normative behaviour of individuals who operate under high family expectations and pressure
to use reinforced values. Such behaviour reflects independence, initiative and risk taking as a result of the
socialization process in the family, school and society (McCelland, 1961; Pareek and Rao, 1978).
Entrepreneurs grow and internalize certain values and norms from their family and society. The influence of
socio-cultural factors on individuals however, varies making some individuals getting more influenced. KIA
reinforces positive values of its clientele especially through training.
2.1.3 Environment
The socio-political and economic policies and opportunities available plays a crucial role in exerting direct
influence on entrepreneurship (GOK, 2005). Knowledge about the social, economic-political environment is
important for the entrepreneur, for example, which type of enterprises are being encouraged or assistance
prioritized. To KIA, such knowledge assists in preparing to exploit the environmental opportunities available
by rendering entrepreneurial services with regard to its core business.
2.1.4 Support System
An efficient and effective support system enhances entrepreneurial success. Several organizations in the
support system in Kenya of which KIA is part of, help developing entrepreneurship. These include: financial
institutions; extension services; NGOs, private agencies carrying out research, and training; Educational
institutions: institutes of technology and management and universities; regional administration, and industries
interested in developing entrepreneurship see section. These institutions are complementary in providing
entrepreneurial support. This dynamic enterprise culture development factor is the foundation of this study.
Entrepreneurs often interact with the support system whose operations reinforce or discourage
entrepreneurship behaviour. The quality of interaction is determined by the organisational result-orientation
and working style which demonstrates the prevailing norms. Attention to such norms and inculcation of
result-orientation, indeed, has relevance for the training, research and consultancy services as offered by KIA an
institution that “lives entrepreneurship”. These factors are shown in Figure II.
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