3. Findings

(a). The
importance/ motives of entrepreneurship development

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It is now widely accepted that there are many good
reasons to promote entrepreneurship among members of the community, while
caution should be exercised so that entrepreneurship is not seen as a ‘mass’ or
wide-ranging solution which can cure all society’s social ills, as many experts
such as Curtain (2000) warn. It has a number of potential benefits. An obvious,
and perhaps significant one, is that it creates employment for the person who
owns the business. This is especially the case in an economy subject to
rationalization, change and restructuring. Many experts believe that this could
bring back the alienated and marginalized people into the economic mainstream.
There may also be a direct effect on employment if entrepreneurs hire fellows
from the ‘dole’ queues. In this way, entrepreneurship could help address some of
the socio-psychological problems and delinquency that arise from joblessness
which is bothering some in the developing countries. Promoting innovation and
resilience among youths is another factor, revitalization of the local
community also adds to the point. Young entrepreneurs may be particularly
responsive to new economic opportunities and trends especially marginalized
groups, a sense of meaning and belonging can also be reaped, at last but not
least, enterprise helps young men and women develop new skills and experiences
that can be applied to many other challenges in life.

Recognising the various reasons why people decide to
start a business is important for the promotion of entrepreneurship. As White
and Kenyon (2000) observe, the challenge lies in promoting entrepreneurship as
a genuine career alternative  especially for
young people, as a way to achieve greater financial reward and work
satisfaction, rather than focusing on self-employment as a way to escape the
negative circumstances of unemployment and poverty. However, in countries with
‘mass’ or high levels of poverty; there is need to make a distinction between
survival-oriented poverty alleviation (PA) micro-enterprises and business growth
oriented enterprises (BG).

several of the main reasons often cited for starting a
business in developed countries for example North America, Europe and Japan
are: To be one’s own boss, with more control over one’s own work and life; To
obtain an alternative route for advancement from a dead-end job; To obtain
additional money; and to provide products not elsewhere available. In the UK, for
example, the youth, especially the graduates, are motivated primarily by
desires for independence and flexibility and not necessarily money (OECD,
2001). In contrast, youth in developing countries tend to go into business out
of socio-economic problems due to poverty or need to survive, or out of failure
to find productive use of their energy/employment in other avenues or a need to
supplement household income. Only a few think a need to accumulate wealth as a
reason. In some countries, the different life experiences and expectations or
different socialization processes of females and males in society influence
their reasons for starting an enterprise

(b).The role culture in the entrepreneurship
development

Culture
refers to a set of values, rules and standards transmitted among generations
and acted upon to produce behaviors that fall within acceptable limits. These
rules and standards always play an important part in determining values,
because individuals anchor their conduct in the culture of the group. Every
country has a certain cultural dimension to development and economics. In Kenya
for example, youth hardly own property. It is therefore important to keep this
fact in mind when helping the same youth to be entrepreneurs. As McGrath (1999)
observes, countries have their own cultures of knowledge and skills. They also
have diverse and multiple traditions of work, and of enterprise in which they have
experienced differently among different social groups and regions in the
country.

As
cultural and social backgrounds influence an individuals’ approach to life,
they similarly influence entrepreneurial activity and enterprise culture. Gibb
(1988) defined an enterprise culture as “set of attitudes, values and beliefs
operating within a particular Community or environment that leads to both
“enterprising” behaviour and aspiration towards self-employment. Researchers
have long realized that cultural attitudes influence the entrepreneurial
activities of a population, a country, region or ethnic group and that the
interaction between culture and entrepreneurship is stronger in the case of
some groups than others. Thus cultural differences between nations are
increasingly understood as an important determinant of a nation’s level of
economic and entrepreneurial development. A cultural environment in which
entrepreneurship is respected and valued, and in which business failure is
treated as a useful learning experience rather than a source of stigma, will
generally be more conductive to entrepreneurship.

            Cultural
values can have an important influence on entrepreneurial behaviour. However,
that does not imply that they are enough to cause or to inhibit the rise of entrepreneurial
activity. Social perceptions and perceived legitimacy of entrepreneurship are
also an important factor in helping or hindering entrepreneurial behaviour.
According to Wilken (1979), the degree of approval or disapproval of business
activity will influence its emergence and characteristics, being favoured by
those environments in which entrepreneurs enjoy greater legitimacy. How
individuals perceive entrepreneurship depends particularly upon: a) their
personal environment. b) Their individual awareness and familiarity with the
concept of entrepreneurship; and c) The general reputation, acceptance and
credibility of entrepreneurs in society.

Cultural standards are
determinant for a national culture. They are understood as all kinds of
recognition, thinking, values and activities that the majority of members
belonging to the same culture considers as normal, natural, typical and
binding. Behaviour is controlled on the basis of recognized cultural standards.
The individual form and the group-specific form of cultural standards differ
within a certain range. Central cultural standards in one culture can be
completely missing in another culture or only have peripheral meanings or
fundamental different functions. Entrepreneurship is understood in a wide
social, cultural and economic context, as well as being innovative at home,
school, leisure and at work.

Entrepreneurship
involves life attitudes, including the readiness and the courage to act in the
social, cultural and economic context. Entrepreneurial qualities or behaviour
in this case include: Creativity and curiosity, motivation
by success, willingness to take risks, ability
to cooperate, and identification of opportunities, ability
to be innovative and tolerate uncertainty. Cultures that value and reward such
behaviour promote a propensity to develop and introduce radical innovations,
whereas cultures that reinforce conformity, group interests, and control over
the future are not likely to show risk-taking and entrepreneurial behaviour.

(c). Barriers/Constraints/ Challenges of starting
and running of an entrepreneurship

A common denominator for all entrepreneurs is the
challenge of starting a business, be it through inventing something, looking
for a new idea within a business, finding the right opportunity to break into a
business or buying into a franchise. These entirely take planning and organising
all the aspects so that one can reach the goal. All entrepreneurs are also
faced with financing their entrepreneurial venture. Entrepreneurs usually are
faced with financial hurdles within corporate rules. So unless the venture
comes from your own pocket getting money is a challenge that requires preparing
funding proposals or applications to be written and/or presented for loans,
venture capital, angel investors or even international private organizations.

Many entrepreneurs face problems of access to resources
such as capital therefore opting for lower market value or inventory as a
result of relying on simple tools or have no equipment at all. Due to this they
find themselves engaged in a narrower range of activities. Other entrepreneurs tend
to operate from homes or streets due to lack of space, wanting of experience
and contacts to the business adds to the problem. Lack of knowledge in business
management is another factor. Although university students have sufficient
education to succeed as entrepreneurs very few opt for self-employment. One of
the reasons is lack of role models to emulate.  At times old role models, though good, seem to
send the message that “you can only make it when you are very old”.

Government policies and set ups which do not put in
place any mechanisms that make it easier for entrepreneurs to run businesses for
example  high council rates, the council
officers harassments and demand  of bribes
compounds the problems. Entry requirements are in many a times discouraging for
the young and those in hurry to get started. An example is the registration of
businesses which proves to be cumbersome making most of the entrepreneurs to prefer
to remain unregistered and therefore not operate company bank accounts.

Different approaches to entrepreneurship development are well-intentioned
but inefficient. A legal and regulatory business environment is not as
conducive to entrepreneurships in developing countries as in more economically
developed countries. Processes around business registration are lengthy and
legal requirements around import and export law are complicated. Government corruption creates further barriers to
entrepreneurs who have little expertise and connections to work around these
issues. Difficulty in accessing capital is caused by financial institutions
which are typically reluctant to lend to young entrepreneurs who fail to meet
their high collateral requirements, especially when viewed through traditional
conservative lenses that see only high risk and high transaction cost. A lack
of access to market information, skills and knowledge gleaned from practical
experience and international best practice are seen as challenging obstacles
which need to be tackled mostly in newly industrializing economies.

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