Entrepreneurship Climate and Its Effect on Entrepreneurial Development in Kenya

According to Nteere (2011), individuals who promote change and initiate development activities are important to economic growth in any country. These persons may be called entrepreneurs because they have the ability to identify needs within their environment, gather appropriate resources and implement action to satisfy these needs. According to ILO (1990) over 50% of all new businesses fail during their first three years of existence. In spite of these facts, self-employment continues to rank high as a career choice by a good number of people. The failure rate is a serious problem and it is compounded over by the fact that over 50% of money used to initiate these businesses is generated from private sources such as personal family savings and this creates psychological problems of people who have failed in business. Such a failure may have far reaching effects greater than their financial loses. These could have been avoided if a conducive environment was provided. In dealing with these many problems, the government of Kenya is engaged in various interventions to help create a conducive and an enabling environment to reduce the rates of failure. These researchers conducted the study in two towns of Kitale and Eldoret in the period June-August 2014, intending to identify ‘The Climate for Entrepreneurship Development in Kenya’. Studying it to discuss its status and how it has affected entrepreneurship development either positively or negatively. Thereafter, they were to recommend a National strategy to enhance its influence on entrepreneurship development in Kenya. Some interviews were held, with policy makers and entrepreneurs and a lot of literature from secondary sources was reviewed which was then analyzed and conclusions drawn.