Entrepreneurial Skills and Innovation Performance in Youth Enterprises in Kenya

Abstract

The purpose of this study was to investigate the influence of entrepreneurial skills on the level of innovation performance in youth enterprises in Kenya. The study was confined to the youth enterprises that have benefited from youth enterprise development fund (YEDF) aiming at giving insight and a model that would help the youth to run more profitable and sustainable businesses in a more competitive way through innovation and creativity. In the context of this study, innovation performance was interpreted as the number of new products, new markets, trademarks and patents in youth enterprises while entrepreneurial skills were in dimensions of communication skills,decision making and propensity to risk taking.

The category of enterprises chosen for the study was considered since youths are the most affected by the unemployment challenges facing the developing world.The other reason was that Kenya has introduced an economic stimulant fundfor the youth and since inception little success has been achieved in solving youth related problems. The objective of the study was  achieved by investigating how entrepreneurial skills have affected communication skills,decision making skills and risk taking propensity thus raising competitive advantage and sustainable growth of the youth enterprises.

 Descriptive research design was used in a combination of qualitative and quantitative models, techniques and measures. Questionnaires and interview guide were used to collect the data. Stratified, random sampling, purposive and judgmental sampling techniques were employed on the youth enterprises and was done at different stages to get the sample for this study. Questionnaires were administered to 223 enterprises drawn from a target population of 1107 enterprises with a response of 160 respondents. The key respondents were owners-managers who were also interviewed. Cronbach's alpha was used as a measure of reliability.  Data was descriptively analysed and then multiple regression analysis was done as was the case with a similar study carried out on the relationship between intellectual capital and financial performance.The results indicated that entrepreneurial skills that were manifested in youth enterprises play a key role in determining the levels of innovation in those enterprises.Limited entrepreneurial skills existed because very little attention is given to training the youths before they are funded.It is assumed that the youths possess basic skills in entrepreneurship yet very small elements of the soft skills were observed.

The study recommended more budget for the training of youths on communication skills,decision making and development of risk appetite if any good results in terms of curbing unemployment is to be realised.More exposure of the youths globally was also recommended so as to widen the scope of innovation for greater benefits to both the youths and the government in terms of employment creation.