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13th Annual International Management Conference Proceeding

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Source: GOK, Central Bureau of Statistics (CBS) <strong>International</strong> Center for Economic Growth (ICEG) and K-Rep<br />

Holdings Ltd., (1999:44). National Micro and Small Enterprise Baseline Survey 1999. Nairobi, Kenya.<br />

Table 5 shows that some entrepreneurs reported training requirements in areas that KIA can provide.<br />

The survey also established a relationship between membership in business associations and education. The<br />

distribution of entrepreneurs by association membership showed that many are university graduates (GOK, 1999) who<br />

are also the main KIA trainees (KIA 2001 - 2006). Gibb, (2002) opines that networking is an important component<br />

in enterprise culture, which provides members with potential for business contacts, protection, promotion of business<br />

interests, assistance and avenue for advancement. Network creation and sustenance is one of the Modules popularly<br />

taught in KIA progrommes.<br />

4.3 KEY ISSUES AND CHALLENGES IN ENTERPRISE CULTURE DEVELOPMENT<br />

Given the dynamic society in which KIA operates, the Institute takes cognizance of the continued challenge<br />

posed in the process of positioning itself at the cutting edge of new developments in management practices<br />

and governance issues with regard to provision of training, research and consultancy services. Several issues<br />

and challenges arise out of the role of KIA as part of the entrepreneurial support system as shown below:<br />

4.3.1 Why Kenya lacks an Enterprise Culture<br />

It is clearly evident that in some societies, some people aspire to business ownership than others. Arguably,<br />

this does not result from intrinsic personality differences, but existence of stronger enterprise culture (ILO,<br />

2001). The creation of an enterprise culture needs wider and more fundamental changes in<br />

Entrepreneurship Development Programmes (EDP). The following reasons why Kenya lacks a developed<br />

enterprise culture are presented with reference to the components of enterprise culture as given by Gibb<br />

(1988):<br />

4.3.2. Abundant positive role images<br />

Kenya suffers from scarcity of positive role images of successful independent businesses (Mullei 1999, GOK,<br />

2005). The country has suffered from high level of corruption. This makes many people associate business<br />

success with this vice (GOK, 2005). KIA has been giving an input integrity issues in the training<br />

programmes<br />

4.3.3 Opportunity to practice entrepreneurial attributes<br />

The opportunity to practice entrepreneurial attributes is reinforced by society culture during the formative<br />

years. However, the Kenyan culture doesn’t stand failures. Mostly, business failures are not given a second<br />

chance. Failure is not seen as opportunity for the lessons learnt which causes self-blame. Yet, these MSEs<br />

have “… a high mortality rate with most of them not surviving to see beyond their third anniversaries”<br />

(GOK, 2005:6).<br />

Further, some people who are good at identifying business opportunities, but not courageous enough to take<br />

risks to convert them into businesses are not encouraged by society. Many Kenyans have negative attitudes<br />

and attach a social stigma to being in business, and business attempts are mostly taken as second best after<br />

academic failure. The first-rate academic performers are socialized to work for blue-chip corporations in<br />

white color jobs (Mullei, 1999). This discourages Kenyans to entrepreneurial practice.<br />

4.3.4 Ample opportunity for familiarization with small businesses<br />

Familiarization with small businesses tasks especially during youth in a country faced with high level of<br />

unemployment is not possible. Further, many businesses do not give youth a chance to experience<br />

entrepreneurship. This is reflected in the lack of a clear government policy on industrial attachments.<br />

Practically, KIA gives opportunities for industrial attachments, but further input is required at policy level.<br />

4.3.5 Network of independent business/family contacts and acquaintances<br />

Success in the world today calls for collaboration with different organizations (Khanka, 2004), but Kenya<br />

has many business Associations A network of independent business/family contacts and acquaintances<br />

reinforcing familiarity and providing market entry opportunities is impractical in a country that suffers from<br />

lack of abundant role models. Additionally, most business related networks are young with low membership<br />

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