This study evaluated the business readiness of youth and women entrepreneurs in Kenya who received funding from the Kenya Youth Enterprise Development Fund and Kenya Women Enterprise Fund using the TRISTART business evaluation tool. The study found that the women fund beneficiaries scored higher in business readiness than the youth fund beneficiaries. Most entrepreneurs scored low in market and technology factors. While experience and skills varied, many lacked business planning expertise. Regarding entrepreneurial spirit, strategic focus and team independence scored low. However, dynamism and communication scored high. The study concluded that entrepreneurial readiness was still low overall and that funders should assess business readiness to identify gaps and target training.

1. Are the
Youth and
Women
of Kenya ready
for Business?
1

2. A Study on Youth and Women Entrepreneurs’ Preparedness in Kenya:
A Case Study of the Kenya Youth Enterprise Development Fund and
Kenya Women Enterprise Fund Beneficiaries using the TRISTART Business
Evaluation Tool.
AUTHORS:
Jackline Sagwe
Samuel Gicharu
Timothy Mahea
KENYA INSTITUTE OF MANAGEMENT PUBLICATION, 2011
1

3. EXECUTIVE SUMMARY
ABOUT TRISTART TOOL been conducted into the reasons why women enter SMEs, less
TriStart is a unique, online self-assessment business readiness is known about their business readiness and the challenges
evaluation tool, which offers an overall business readiness they face in growing their businesses. Achieving gender parity
score. It provides an analysis of an individual’s personalized and empowering women in SMEs remains therefore a key
business readiness report based on 19 key components which consideration in both the Medium Term Plan 2008 – 2012 and
have been grouped into three categories, and then statistically Vision 2030 where entrepreneurship is identified as one of the
correlated into entrepreneurial success criteria consisting of: key drivers of socio economic transformation.
Market and Technology (technology orientation, market status,
market prospects and customer orientation), Experience and Various programs by the Kenya Government such as youth
Skills( breadth of business experience, business experience, and women enterprise development funds have already been
business planning expertise, business area expertise, level put in place in order to facilitate creation of entrepreneurial
of responsibility, finance and accounting, administration and ventures in Kenya. The question is how prepared are the
sales and marketing) and Entrepreneurial Spirit ( strategic Kenyan youth and women to enterprise development. The
focus, appetite for risk, dynamism, visual communication, Kenya Institute of Management through its SME Solution
informal communication, team independence and team centre sought to assess business readiness among the
player). youth and women entrepreneurs using the TriStart business
evaluation tool.
Based on the responses provided in the online survey,
individuals are scientifically graded against successful and The TriStart helps determine how well an existing or an
not-so-successful businesses which have gone before them. individual’s idea does in the market by identifying key factors
TriStart assessment delivers a clear understanding of an critical to business success, applying a business readiness
individual or team’s strengths and weaknesses thereby score highlighting business success or failure factors by
enabling them to identify where they need interventions. The highlighting the strengths and weakness of an individual and
tool is of relevance to entrepreneurs at start up and various the team in the business. The evaluation explores personality
stages of growth, venture capitalist, and institutions financing characteristics, competencies, and motives before one begins
SME’s. It enables banks and venture companies understand an entrepreneurial venture.
the viability of a business that they are advancing credit to.
Study Objectives
Study Background Our study sought to determine whether the youth and women
It is widely acknowledged that SMEs generate employment of Kenya are ready for business. The study was guided by the
opportunities, economic growth and produce commercial following questions;
innovations of high quality. Consequently, there is a growing (i) What is the level of business readiness among the youth
appreciation within Government, Development Community and women entrepreneurs in Nairobi, Kenya?
and Civil Society that an important aspect of holistic and
(ii) What are the factors that contribute to the business
all inclusive development is the active participation and
readiness among the youth and women entrepreneurs in
involvement of women and the youth in decision making.
Nairobi, Kenya?
The population growth rate of the youth has outstripped both
the growth the economy and employment opportunities. (iii) Do individual capabilities of entrepreneurs such as
This means in essence fresh employment opportunities must training, education, and prior experience in the same field
be created including by the youth themselves. The best way have a significant effect on the growth of the business
therefore the youth can create opportunities is through through the management strategies and business
entrepreneurship. practices they choose to adopt?
Similarly, to achieve sustainable wealth creation and Methodology
employment, women’s participation in the small business The study adopted a cross sectional descriptive design. The
sector is a growing phenomenon worldwide. Entrepreneurship study population consisted of entrepreneurs who have
has been recognized in various government policy documents benefited from the Kenya Youth Fund and Women Fund. The
as the engine of economic change with a growing tendency for study adopted two-stage sampling. The first step involved
small enterprises promotion. While considerable Research has stratification of entrepreneurs in terms of type of funding:
2

4. Youth fund and Women Fund. Secondly, a random sample On team preferences about two thirds of the entrepreneurs
of 240 entrepreneurs was selected in proportionate to the surveyed indicated that they would like to be part of the team
size of each stratum (type of fund). Primary data collection that encourages their individuals to do their own things
method by use of questionnaires carefully designed by
By completing the TriStart evaluation the entrepreneurs were
Tristart to assess business readiness of the sample randomly
assessed against the TriStart entire database of global start-
selected. Prior to data collection, ethical approval was sought
up and early stage businesses on which the TriStart research
from National Council of Science and Technology (NCST).
programme is based. The entrepreneur’s TriStart evaluation
Data management and analysis was done using SPSS. Data
score reflects his/her current likelihood of being successful in
management involved checking for consistency, coding,
his/her business venture. The evaluation identifies three core
labeling and documenting. During management, overall data
component categories within which the 19 critical factors
quality was assessed. Data was disaggregated into type of
sit. These are knowledge and skills; market and technology
funding; gender and analyzed appropriately.
and entrepreneurial spirit. Individualized reports indicate
The analysis was categorized into business sector, business
that overall the women fund beneficiaries scored better on
knowledge, experience, market position and style. The
business readiness as compared to youth fund beneficiaries.
study targeted 240 entrepreneurs drawn from both Youth
61% of the youth beneficiaries scored 26 -50% whereas 68%
and Women funds in equal proportions, however only
of the women fund beneficiaries scored the same. 39.1% of
110 youth entrepreneurs and 75 women entrepreneurs
the youth fund beneficiaries scored 51-75% whereas 32% of
responded translating to a response rate of 91.7% and 62.5%
the women fund scored the same.
response rate for women and youth. The entrepreneurs
were distributed across the eight constituencies as follows:
Majority of the entrepreneurs (98%) scored 0 -25% on market
Dagoretti (9.2%); Embakasi (17.3%); Kamukunji (12.9%);
and technology. An indication that entrepreneurs are not
Kasarani (5.4%); Langata (6.5%); Makadara (3.7%); Starehe
well prepared in market and technology. On experience
(24.4) and; Westlands (9.2%)
and skills, 46.4% of the youth entrepreneurs rated breath of
Study Findings experience as high and 34.7% of the women entrepreneurs
On business sector, majority of the entrepreneurs (86%) rated it as low. Business experience was rated medium on
indicated that they need both advice and money. On business average by both youth and women entrepreneurs. Business
start up, about one third of the entrepreneurs indicated that planning expertise on the other hand was rated lowly by
they will be ready in 1 to 3 months to start their business. This both the youth and women entrepreneurs. Interestingly level
indicates that this category of entrepreneurs after receiving of responsibility was rated highly by both youth and women
funding did not start their business immediately. Further, entrepreneurs.
majority (59%) of the entrepreneurs had not developed
business plans and only 30% of the entrepreneurs indicated Entrepreneurial spirit was assessed on strategic focus,
that they had submitted the business plans they developed appetite for risk, dynamism, vision communication, informal
to investors, bank and support agency. communication, team independence and team player. 50.7%
On market sector the respondents responded to growth of the women fund entrepreneurs and 53.6% of the youth
prospects, level of competition and market existence. Majority fund entrepreneurs rated (50.7%) rated strategic focus as
(79.5%) of the entrepreneurs indicated that team members low. On the other hand 43.6% of the youth and 37.3% of the
are very important as sources of support. About average of women fund entrepreneurs rated appetite for risk as high.
the entrepreneurs had not modified their products/services The results further indicate that dynamism was rated highly
to give greater customer appeal. Further, majority of the by both entrepreneurs. Vision communication was rated
entrepreneurs indicated that the products and services they as medium. Interestingly team independence was rated by
offer were customer friendly. majority from both youth and women entrepreneurs as low.
Majority (76.8%) of the entrepreneurs surveyed indicated Conclusion
that they prefer when success brought about their effort 61.3% of the women entrepreneurs and 48% of the youth
is attributed to everyone in the team. Average of the surveyed have less than 50% likelihood of business success.
entrepreneurs described their communication style as This explains why 1 in every 3 new businesses fails within the
predominantly formal and they naturally communicate what first 6 months.
needs to be done by assigning clear responsibilities and tasks.
3

5. The entrepreneurs were assessed on: Entrepreneurial Spirit
This involved entrepreneurs’ strategic focus, appetite for risk,
1. Knowledge and skills dynamism, visual communication, informal communication,
team independence and team player.
2. Market and Technology
• Overall 98% of the entrepreneurs scored 26-50% on
3. Entrepreneurial spirit
entrepreneur spirit
Knowledge and Skills
• 97.3% of the youth fund beneficiaries scored 26-50%
This involved entrepreneurs’ breadth of experience, business whereas 100% of the women fund beneficiaries scored
experience, business planning expertise, work experience, the same.
business area expertise and level of responsibility. The key • In a scale of 1(low) and 3 (high) majority of the
findings are entrepreneurs rated their knowledge on strategic focus
and team independence as low.
• Entrepreneurs demonstrated inadequate knowledge of • Dynamism and visual communication was rated highly
the sector they operate in. by both entrepreneurs.
• 46.4% of the respondents indicated that the business Growth prospects, level of competition in the market sector,
launched had performed okay knowledge of a clear leader in the market sector, business
• Insufficient branding, brand awareness and brand knowledge, prior work experience and its relevance to the
distinction business venture and market position are among the factors
that contribute to the business readiness among the youth
Market and Technology and women entrepreneurs in Nairobi, Kenya.
On this the entrepreneurs were assessed on technology
orientation, market status, market prospects and customer Individual capabilities of entrepreneurs such as training,
orientation. education, and prior experience in the same field were found
• Majority of (98%) scored 0 -25% on market and to have a significant effect on the growth of the business
technology. An indication that entrepreneurs are not venture.
well prepared in market and technology and yet they
In conclusion the results indicate that entrepreneurial
operate in a business environment that is technologically
readiness is still low among the entrepreneurs who benefited
advanced. This explains why half do not apply new
from both youth and women fund. This is therefore crucial
methods or technology to provide products/services at
for enterprise funders needs to assess the entrepreneurs on
lower cost.
business readiness to identify the business readiness gaps.
• Team members were as well as suppliers was identified as
Further the results are useful in categorizing entrepreneurs
very important sources of support by the entrepreneurs.
for purposes of training.
• Half of the entrepreneurs had not modified their
products/services to give greater customer appeal.
• Majority (65.4%) of the entrepreneurs surveyed
indicated that they would like to be part of the team that
encourages their individuals to do their own things.
• 50.3% indicated that, “I hate uncertainty”, applies to them.
This is an indication that they are not willing to undertake
risky ventures.
• Lastly in a scale of 1(low) and 3(high) majority of the
entrepreneurs rated their knowledge on technology
orientation and market status as low
4

6. CONTENTS
EXECUTIVE SUMMARY .................................................................................................................................................................................... 2
1.0 Introduction ............................................................................................................................................ 8
1.1 Objectives of the study ............................................................................................................................................................. 8
1.2 Research Questions ................................................................................................................................................................... 8
2.0 Literature Review.................................................................................................................................... 8
2.1 Introduction .................................................................................................................................................................................. 8
2.2 Women Entrepreneurship ....................................................................................................................................................... 9
2.3 Youth Entrepreneurship ........................................................................................................................................................... 9
2.4 Need for Entrepreneural Preparedness.............................................................................................................................10
2.5 Motivation to become an Entrepreneur ...........................................................................................................................10
2.6 Team Formation.........................................................................................................................................................................11
3.0 Data and Methods ................................................................................................................................11
3.1 Introduction ................................................................................................................................................................................11
3.2 Research Design ........................................................................................................................................................................11
3.3 Population and Sampling Design........................................................................................................11
3.3.1 Population ...................................................................................................................................................................................11
3.3.2 Sampling Technique ................................................................................................................................................................11
3.4 Data Collection Methods .......................................................................................................................................................12
3.5 Data Entry Management and Analysis ..............................................................................................................................12
4.0 Discussion of Study Findings ...............................................................................................................12
4.1 Demographics ............................................................................................................................................................................12
4.2 Business Sector ....................................................................................................................................13
4.2.1 Business Idea ..............................................................................................................................................................................13
4.2.2 Market Sector .............................................................................................................................................................................15
4.3 Business Knowledge.............................................................................................................................18
4.3.1 Knowledge and Business Plan..............................................................................................................................................18
4.4 Experience .............................................................................................................................................19
4.4.1 Work Experience........................................................................................................................................................................19
4.4.2 Business Experience .................................................................................................................................................................21
4.5 Market Position ..........................................................................................................................................................................21
4.5.1 Sources of Support ...................................................................................................................................................................21
4.5.2 Competitive Advantage..........................................................................................................................................................21
4.5.3 Product .........................................................................................................................................................................................22
4.6 Style .......................................................................................................................................................22
4.6.1 Communication .........................................................................................................................................................................22
4.6.2 Team Preferences ......................................................................................................................................................................23
4.6.3 Attitude.........................................................................................................................................................................................24
4.7 Tristart Individualised Report .............................................................................................................24
4.7.1 Knowledge and Skills...............................................................................................................................................................25
4.7.2 Market and Technology ..........................................................................................................................................................25
4.7.3 Entrepreneurial Spirit ..............................................................................................................................................................26
4.8 Tristart Factors ............................................................................................................................................................................27
4.8.1 Market and Technology ..........................................................................................................................................................27
4.8.2 Experience and Skills ...............................................................................................................................................................27
4.8.3 Entrepreneurial Spirit ..............................................................................................................................................................28
5.0 Discussions, Conclusions and Recommendations .............................................................................28
5.1 Business Idea ..............................................................................................................................................................................28
5.2 Market Sector .............................................................................................................................................................................29
5.3 Style ...............................................................................................................................................................................................29
5.4 Results on Individualised Reports .......................................................................................................................................29
5.5 Conclusions and Recommendations .................................................................................................................................29
5.6 Limitations and Future Research .........................................................................................................................................29
References...............................................................................................................................................................30
5

7. LIST OF TABLES
Table 1: Constituencies respondents sampled from ....................................................................................................................13
Table 2: Responses on start up .............................................................................................................................................................14
Table 3: Success of Business Launch...................................................................................................................................................15
Table 4: Growth prospects .....................................................................................................................................................................15
Table 5: Level of competition in the market sector .......................................................................................................................16
Table 6: Other Factors on market sector ...........................................................................................................................................17
Table 7: Responses on Knowledge and business plan.................................................................................................................18
Table 8: Contents of the Business Plan ..............................................................................................................................................19
Table 9: Relevance work experience to business venture ..........................................................................................................21
Table 10: Business Experience .................................................................................................................................................................21
Table 11: Sources of Support ...................................................................................................................................................................21
Table 12: Competitive Advantage..........................................................................................................................................................22
Table 13: Product .........................................................................................................................................................................................22
Table 14: Communication .........................................................................................................................................................................23
Table 15: Team Preferences ......................................................................................................................................................................24
Table 16: Attitude.........................................................................................................................................................................................24
Table 17: Cross tabulation on type of funding received and Overall Tristart Evaluation results.....................................25
Table 18: Cross tabulation on type of funding received and; Knowledge and skills ...........................................................25
Table 19: Cross tabulation on type of funding received and entrepreneurial spirit ............................................................27
Table 20: Rating on Market and Technology......................................................................................................................................27
Table 21: Rating on Experience and Skills ...........................................................................................................................................27
Table 22: Entrepreneurial Spirit ..............................................................................................................................................................28
6

8. LIST OF FIGURES
Figure 1: Response rate ................................................................................................................................................................................12
Figure 2: Advice to entrepreneurs ............................................................................................................................................................13
Figure 3: Are you working for yourself or someone else..................................................................................................................13
Figure 4: Business Plans ...............................................................................................................................................................................14
Figure 5: Use of Business Plans in Seeking Funds ...............................................................................................................................14
Figure 6: Business Launch ...........................................................................................................................................................................15
Figure 7: Market Existence .........................................................................................................................................................................16
Figure 8: Business Expectations ................................................................................................................................................................18
Figure 9: Work Experience ...........................................................................................................................................................................19
Figure 10: Highest level of responsibility held.....................................................................................................................................20
Figure 11: Are the people you work with previous colleagues......................................................................................................20
Figure 12: Knowledge and Skills ..............................................................................................................................................................25
Figure 13: Market and Technology ...........................................................................................................................................................26
Figure 14: Cross tabulations on type of funding received and, Market and technology .....................................................26
Figure 15: Entrepreneurial Spirit ...............................................................................................................................................................26
7

9. 1.0 Introduction score highlighting the propensity for success or failure and
Entrepreneurship has become a vital driver for economic highlighting the strengths and weakness of an individual and
growth, economic competitiveness, job creation and the the team in the business. The evaluation explores personality
advancement of societal interests (Linan, Rodrıguez-Cohard characteristics, competencies, and motives before one begins
and Rueda-Cantuche, 2005). Van Praag and Versloot (2007), an entrepreneurial venture.
based on a literature review of 57 studies on the relationship
between small enterprises and economic growth, and 1.1 Objectives of the study
concluded that entrepreneurs play a very important role The main objective of the study is to explore business
in the economy. According to the authors, these smaller readiness of both women and youth who have benefited
enterprises generate employment opportunities, economic from the Women Fund and Youth Fund respectively. It is
growth and produce commercial innovations of high commonly assumed that those who seek entrepreneurial
quality. Consequently, there is a growing appreciation within funding are ready for business. This study therefore sought
Government, Development Community and Civil Society that to investigate whether these assumptions hold and if so how
an important aspect of holistic and all inclusive development gender and age plays a part in shaping such outcomes. The
is the active participation and involvement of women and study specifically sought to address the following objectives:
the youth in decision making. Such an orientation – in effect i To assess the level of business readiness among the youth
achieving gender equality and empowering women is and women fund beneficiaries.
considered to be one avenue for promoting women’s rights, ii To identify business readiness gaps among the youth and
empowerment, and leadership actively by positioning them fund beneficiaries.
at the center of economic development. iii To generate information for influencing policy in making
choices and implementing cost effective interventions
The focus on the youth has also gained a lot of support that enhance business readiness among the youth and
since their population has been growing at a high rate and women entrepreneurs.
the employment opportunities have not matched that
growth. This has therefore shifted the focus to empowering 1.2 Research Questions
of the youth in order to enable them become entrepreneurs i. What is the level of business readiness among the youth
and hence employers. Various programs by the Kenyan and women entrepreneurs in Nairobi, Kenya?
Government such as Kenya Youth Enterprise Development ii. What are the factors that contribute to the business
Fund have already been put in place in order to facilitate readiness among the youth and women entrepreneurs in
creation of entrepreneurial ventures in Kenya. Nairobi, Kenya?
iii. Do individual capabilities of entrepreneurs such as
However, women and youth face barriers in their quest training, education, and prior experience in the same field
to become successful in entrepreneurship. Major barriers have a significant effect on the growth of the business
encountered include; lack of confidence in their own through the management strategies and business
capabilities, lack of working capital since majority of them practices they choose to adopt?
especially in the rural areas earn less in employment, and
socio-cultural barriers since women have to perform multiple The remaining part of the paper is organized as follows.
roles of a familial nature irrespective of their career. Section two presents the literature review, section three data
and methods, section four study findings and section five
Achieving gender equality and empowering women in presents the discussion of findings and recommendations.
SMEs remains a key consideration in the Medium Term
Plan 2008 – 2012 and Vision 2030 where entrepreneurship 2.0 Literature Review
is identified as one of the key drivers of socio economic 2.1 Introduction
transformation. It’s in this respect that the Kenya Institute Most people think of entrepreneurship as the process
of Management through its SME Solution Centre sought to of starting a new business. Researchers, theorists, and
assess business readiness among the youth and women business practitioners define it in many different ways.
entrepreneurs using the TriStart tool business evaluation For example, Gartner (1988) defines an entrepreneur as
tool. The TriStart helps determine how well an existing or an someone who creates new independent organizations.
individual’s idea does in the market by identifying key factors Schumpeter (1934) defined entrepreneurs as innovators
critical to business success, applying a business readiness who implement entrepreneurial change within markets,
8

10. where entrepreneurial change has five manifestations: the sectors women therefore prefer for starting a business are
introduction of a new (or improved) good; the introduction mostly characterised by high turbulence rates, thus providing
of a new method of production; the opening of a new relatively few opportunities for rapid business growth (Storey,
market; the exploitation of a new source of supply; and 1994; Robb and Wolken, 2002).
the re-engineering/organization of business management
processes. On the other hand, Shane and Venkataraman Buttner and Moore (1997) and Lerner et al. (1995) highlighted
(2000) define entrepreneurship as a field of business that women’s motivations to start their own businesses such as
seeks to understand how opportunities to create something self-fulfilment and personal goal attainment among others, as
new created by specific persons, who then use various means the prime reason for women’s low quantitative performance
to exploit or develop them, thus producing a wide range of (such as jobs creation, sales turnover and profitability) when
effects (p. 218). Dollinger (2003) on the other hand interprets compared to men. Selection of strategies that focused
entrepreneurship as the creation of an innovative economic on market expansion and new technologies, as well as
organization (or network of organizations) for the purposes willingness to incur greater opportunity costs for the superior
of gain or growth under conditions of risk and uncertainty. performance of their firms were the key factors for the high
growth of women-owned business as compared to low or
According to Timmons and Spinelli (2003) entrepreneurs are no growth firms (Gundry andWelsch, 2001) This literature
self-starters who appear driven internally by a strong desire review provides insights into the nature and characteristics
to compete against their own self-imposed standards and to of women-owned businesses. However little has been down
pursue and attain challenging goals. The authors further argue on their level of preparedness on market and technology;
that real entrepreneurs have low need for status and power, knowledge and skills and; entrepreneurial spirit.
but they derive personal motivation from the challenge and
excitement of building enterprises. In their study involving 130 2.3 Youth Entrepreneurship
members of the Small Company Management Programme The level of unemployment in Kenya is very high. The most
at Harvard Business School, they found out that motivation affected by high unemployment rates are the youth who
to excel was the single most important factor in their long- after graduating from Universities and other institutions
term successes. The need to excel is characterized by high but of learning, find themselves unable to secure formal
realistic goals, drive to achieve and grow, and interpersonally employment opportunities, thereby failing to gainfully
supporting versus competitive. contribute to economic development of this country despite
their enthusiasm, energy and drive.
2.2 Women Entrepreneurship
Women’s participation in the small business sector is a growing According to the ILO (ILO publication, 2007), the increase in
phenomenon worldwide. While considerable research has the number of youths in secondary and tertiary education
been conducted into the reasons why women enter small is a positive development; however, labour markets in
business, and their penchant for operating solo operations or many countries are presently unable to accommodate the
micro businesses (up to five employees), less is known about expanding pool of the skilled young graduates. In Africa,
their level of business preparedness. Female entrepreneurs several African governments have developed entrepreneurial
often tend to pursue business in a limited number of skills development programs in order to solve youth
sectors, in which women traditionally are economically unemployment problem and ensure economic growth
active such as the retail and service sectors. Research from (Nafukho, 1998). In the case of Kenya for instance, the
the West indicates that female business owners prefer to Government has created both a youth entrepreneurship fund
start their business in sectors where female employment is the belief that this will stimulate the creation of new business
concentrated (Luber and Leicht, 2000; McManus, 2001). The enterprises by Kenyan entrepreneurs (Nafukho, 2007). The
choice of sector is attributed to a combination of resource question is how prepared are the youth for entrepreneurship.
constraints, environmental uncertainty and specific female It is important therefore to note that money is only one of
aversion to risk-taking, which lead them to engage in activities the resources that apply to a business; it is inevitable that
with low entry thresholds and low financial risk. This pattern entrepreneurship culture and expertise be first inculcated to
helps explain why female businesses are typically smaller the youth and the prospective entrepreneurs.
in employment and sales than their male counterparts. The
9

11. 2.4 Need for the Entrepreneurial Preparedness everyone unaware; demographics; changes in perception,
Entrepreneurs are people who create and grow ventures and mood, and meaning and; new knowledge, both scientific and
all entrepreneurs must be successful business people, but not non-scientific.
all business people are entrepreneurs (Macke and Markeley,
2003).The authors further argue that many business people Knowledge has as a major factor influencing economic growth
run great businesses, but they are not motivated or lack the which takes place predominantly through entrepreneurial
skills to grow businesses and create new enterprises. Whereas capital or the capacity to engage in the entrepreneurial
entrepreneurs create new enterprises for different reasons activities as highlighted by the new growth theory with its
such as self-sufficiency, lifestyle, or desire for wealth they are emphasis on knowledge (Romer, 1990, 1994).
all motivated to turn ideas into new business ventures. Although growth theories are not directly concerned with
entrepreneurship and small firms, many authors have
Small, medium and micro enterprises (SMEs) play major identified these as the key mechanisms through which
roles in economies by creating jobs and increasing income knowledge spill-over contributes to job creation and the
levels of a majority of the people (Ongori and Migiro, 2009). overall growth of the economy (Wennekers and Thurik,
These enterprises serve as drivers of economic growth Nooteb Audretsch and Thurik, 2001; Pagano and Schivardi,
and innovation. However, SMEs face a myriad challenges. 2003; Schuh and Triest, 2000).
To minimise the challenges, it’s important to assess the
business readiness of the entrepreneurs. To be successful Relevant literature mainly describes factors thought to
as entrepreneurs, people must possess certain behaviors, influence small business growth in two categories. The first
motives, and cognitive frameworks. Peterson and Gonzalez comprises entrepreneurs’ characteristics such as behaviour,
(2005) argue that entrepreneurial behavior is critical for people personality, attitude (Storey, 1994), their capabilities, including
who want to start their own business and for employees who education and training that create higher expectations in
want to maintain their jobs. Baum, Frese, Baron, & Katz (2007) some industry sectors (Henry et al., 2005), and their social
find that entrepreneurs’ personal characteristics are the most capital which influences access to resources (Brush et al.,
important factors for business success even more important 2004). Other entrepreneurial factors identified by Storey
than the business idea or industry setting. (1994) are previous management experience, family history,
functional skills, and relevant business sector knowledge.
Rauch and Frese (2007) indicate that personality characteristics None of these however have conclusively shown to constitute
are enduring dispositions that show a high degree of stability a universal success factor.
over time. The authors conducted a thorough review of the
literature related to personality traits and entrepreneurship 2.5 Motivations to become an Entrepreneur
before identifying the characteristics that are critical for Several authors have argued that the decision to become an
entrepreneurs to possess in that they have an effect on entrepreneur is a complex and multi-faceted phenomenon
business creation and success. On the other hand, Frese, (Marlow and Strange, 1994; Shane et al., 1991; Stevenson,
Baron, and Katz (2007) report that despite the belief that 1990). Among the motivating factors is the desire for
entrepreneurs’ personal characteristics are important for new independence and autonomy (Harrison and Hart, 1993;
venture success, the psychology of the entrepreneur has not McDowell, 1995; Shane et al., 1991; Vivarelli, 1991). Therefore,
been thoroughly studied. independence appears to be a universal motivator for both
women and men in deciding to become entrepreneurs
Drucker (2004) sees entrepreneurs as individuals who act (Kirkwood, 2007). Earlier studies on gender differences are
creatively, innovate and reconstruct. He values them as inconsistent.
individuals who see and use profit-making opportunities by
bringing together the factors of production. According to Kirkwood (2007) found out that motivations that emerged
Drucker, there are seven sources for innovative opportunity: from experiences at work were also an important
the unexpected - the unexpected success, the unexpected consideration to many entrepreneurs. Two distinct categories
failure, the unexpected outside event; the incongruity of work-related motivation were found in the literature; those
-between reality as it actually is and the reality as it is assumed regarding a particular job or employer and broader career
to be or as it ‘ought to be; innovation based on process need; or employment level factors. . On a higher level than an
changes in industry structure or market structure that catch individual job are career and employment issues such as career
10

12. flexibility, advancement and co-career issues (DeMartino and who have experience in diverse functional areas (Feeser and
Barbato, 2003), difficulty finding employment (Fox, 1998; Willard, 1990; Harrison et al., 2004a).
Hakim, 1989) and redundancy (Marlow, 1997). DeMartino
and Barbato (2003) found women were more motivated than 3.0 Data and Methods
men by co-career issues and career flexibility. The opposite 3.1 Introduction
trend existed for advancement where significantly more men This chapter provides a discussion of the research
were motivated by this factor than women (DeMartino and methodology adopted by the study. It provides a discussion
Barbato, 2003). on the research design paying attention to the choice of
the design, the population of study, sample and sampling
Early studies have shown that a number of factors hamper techniques, ethical consideration, data collection methods
the growth of small businesses, including lack of capital or as well as data analysis and data presentation methods used
financial resources, however, the degree to which limited in the study.
financial resources alone are a major obstacle to business
development is still controversial (Okpara, 2011). Kallon 3.2 Research Design
(1990) found that the capital needed to initiate a business This study adopted descriptive survey Research Design.
is significantly negative when related to the rate of growth According to Saunders, Lewis and Thornhill (2003) survey
for the business. He also found that access to commercial strategy is a deductive approach popular in business research.
credit did not contribute to entrepreneurial success in The main advantage of this research design is the ability to
any significant way, and if it did, the relationship would be collect large amounts of data from sizeable population in a
negative. This explains why entrepreneurial preparedness highly economical way.
is key to business success and growth. Management such
as accounting, finance, personnel, and management issues, 3.3 Population and Sampling Design
have been cited as a major cause of business failure for small
businesses in the literature. Tushabomwe-Kazooba (2006) 3.3.1 Population
found out that that poor recordkeeping and a lack of basic Population is defined as a full set of cases from which a
business management skills are major contributors to small sample is taken, (Saunders, Lewis and Thornhill, 2003). The
business failure in Africa. study population consisted of entrepreneurs who have
benefited from the Kenya Youth Enterprise Development
2.6 Team formation Fund and Women Enterprise Fund. Due to the large numbers
Researchers now recognize the importance of teams in of beneficiaries it was impractical to survey the whole
the creation of new firms, after decades of emphasis on population, as a result, a sample was scientifically selected to
entrepreneurs as individuals (Forbes et al., 2006). This perhaps represent the population
explains why the youth and women fund target groups for
3.3.2 Sampling Technique
funding. Ventures founded by entrepreneurial teams tend to
Saunders, Lewis and Thornhill (2003) state that probability
be more innovative than those with only one founder (Ruef,
sampling is commonly associated with survey based research
2002) and larger teams are associated with higher levels of
due to the need to make inferences from the selected sample
venture growth (Lee and Tsang, 2001). Representative studies
to answer the research questions. Fox and Bayat (2007) add
show that truly solo entrepreneurs are not predominant.
that a probability sample is one in which each element in
the population has a known and non-zero chance of being
Martinez and Aldrich (2011) argue that strategic theories
included.
stress that entrepreneurs should balance instrumental and
expressive goals in the selection of teams. On the rational-
The study adopted two – stage sampling. The first step
instrumental side, theorists urge entrepreneurs to consider
involved stratification of entrepreneurs in terms of type of
the complexity of entrepreneurial endeavors and include a
funding: Kenya Youth Enterprise Development Fund and
variety of work experiences and complementary skills. For
Women Enterprise Fund. Secondly, a random sample of 240
instance high technology firms tend to be founded by teams
entrepreneurs was selected in proportionate to the size of
who recruit members they have met in previous jobs and
each stratum.
11

13. 3.4 Data Collection Methods Data management and analysis was done using SPSS. Data
This study utilized primary data collection method by use management involved checking for consistency, coding,
of questionnaires carefully designed by Tristart to assess labeling and documentation. During data management,
business readiness of the sample randomly selected. Prior to overall data quality was assessed. Data was disaggregated
data collection, ethical approval was sought from National based on type of funding; gender and analyzed appropriately.
Council of Science and Technology (NCST).
Pre-testing of the instruments was also carried out in selected 4.0 Discussion of study findings
entrepreneurs based on gender and type of funding. Those 4.1 Demographics
sample pretesting were excluded from the study. The study targeted 240 entrepreneurs drawn from both
Youth and Women fund in equal proportions however only
3.5 Data entry, management and analysis 110 youth entrepreneurs and 75 women entrepreneurs
A blinded double data entry was carried to assess the quality responded translating to a response rate of 91.7% and
of data entered. The double data entry was run concurrently 62.5% response rate for women and youth entrepreneurs
with the initial entry so that it can feed back areas that require respectively ( figure 1)
keen attention. Data entry screen was designed with tables
created and stored. The data entry screen was developed
by the data clerk so that the necessary checks and balances
(constraints) are put in place. This assisted in improving the
quality of data by not allowing un-expected values and take
care of any skips within the tools.
Figure 1: Response rate
The results on table1 indicate that majority of the respondents (24.4%) were
from Starehe Constituency and the least were from Makadara (3.7%) (table 1).
12

14. Table 1: Constituencies respondents sampled from
Constituency Frequency Percentage
Dagoretti 17 9.2
Embakasi 32 17.3
Kamukunji 24 12.9
Kasarani 10 5.4
Langata 12 6.5
Makadara 7 3.7
Starehe 45 24.4
Westlands 17 9.2
No response 21 11.4
Total 185 100
4.2 Business sector
4.2.1 Business Idea
On whether they entrepreneurs needed money or advice, most enterpreneurs (86%) indicated that they neeed both advice and
money, 10% indicated they need money and 3% needed advice (figure 2).
Figure 2: Advice to entrepreneurs
On whether the entrepreneur for himself or someone else, the study findings indicate that most entrepreneurs (78%) are either
running their own business or in partnership whereas 7% were working for someone else (figure 3).
Figure 3: Are you working for yourself or someone else
13

15. Business start up
The study findings show that 38% of the entrepreneurs had already started their businesses, 34.6% will be ready in 1 to 3
months and 15.1% of the entrepreneurs will be ready in more than three months (table 2).
Table 2: Responses on start up
Response on start up Frequency Percentage
Already started 71 38.4
Within one month 4 2.2
1 to 3 months 64 34.6
More than three months 28 15.1
Not sure yet 13 7.0
No response 5 2.7
Business Plans
37% of the entrepreneurs surveyed had developed business plans whereas 59% had not. This indicates that majority of the
entrepreneurs do not develop business plans and thus starting a business without one (figure 4).
Figure 4: Business Plans
Use of Business Plans in Seeking Funds
30% of the entrepreneurs indicated that they had submitted the business plans they developed to investors, bank and support
agency, and 27% did not whereas 43% did not respond to the question (figure 5).
Figure 5: Use of Business Plans in Seeking Funds
14

16. Business Launch
62% of the entrepreneurs indicated that they had launched their businesses whereas 37% had not.
Figure 6: Business Launch
Success of Business Launched
46.4% of the respondents indicated that the business launched had performed okay,
9.2% exceeded expectations and 37.9% did not respond to the question (table 3).
Table 3: Success of Business Launch
4.2.2 Market sector
Growth Prospects
About 41% of the entrepreneurs surveyed indicated that there was moderate growth in the market sector they operate in,
28.1% had experience rapid growth, 23.8% indicated that the market sector had experienced steady market growth and the
remaining 5.4% had experience declining market growth.
Table 4: Growth prospects
Market Sector Frequency Percentage
What are the growth prospects for your market
Declining 10 5.4
Steady 44 23.8
Moderate growth 75 40.5
Rapid growth 52 28.1
No response 4 2.2
15

17. Level of competition
Regarding the level of competition 48.6% of the respondents rated that the level of competition in the market sector they
operate in as high, 25.9% as moderate, 13.5% as insignificant and 11.4% do not find any competition.
Table 5: Level of competition in the market sector
How do you rate the level of competition? Frequency Percentage
None 21 11.4
Some but insignificant 25 13.5
Moderate 48 25.9
High 90 48.6
No response 1 .5
Market existence
On market existence 47.6% of the entrepreneurs surveyed indicated that the market they operate in has been in existence for 1
to 5 years and 26.5% indicated 6 to 15 years (figure 7).
Figure 7: Market Existence
Other factors on market sector
On other market factors, 55.7% of the entrepreneurs surveyed indicated that at least one well known nationally advertised
brand that sells a product or similar to theirs exists whereas 43.2% were not aware (table 4). Further 63.8% of the entrepreneurs
surveyed indicated knowledge of a clear leader in the market sector they operate in whereas 33.5% did not. On comparison
between the price of the product and competition, about two thirds of the entrepreneurs considered it as average and less than
one thirds lower than average. Majority (62.2%) of the entrepreneurs surveyed operate in a local market (table 6).
On start up cost, 31.4% started with KShs. 101,000-250,000 and about 30% had started their businesses with less than Kshs.50,
000. Further 27% of the entrepreneurs had started with 26 to 100 employees, 19.5% started with 11- 25 employees and 17.8%
with 1 to 10 employees.
16

18. Table 6: Other Factors on market sector
Is there at least a one well known, nationally advertised brand that sells a Frequency Percentage
product or service similar to yours?
Yes 103 55.7
No 80 43.2
No response 2 1.1
Is there a clear leader in your market sector Frequency Percentage
Yes 118 63.8
No 62 33.5
No response 5 2.7
How does the price of your product or service compare to the competition Frequency Percentage
Higher than average 17 9.2
Average 124 67.0
Lower than average 31 16.8
No response 13 7.0
The market your business operates in is: Frequency Percentage
Local 115 62.2
Regional 22 11.9
National 7 3.8
International 6 3.2
No response 35 18.9
What was the start up cost Frequency Percentage
Less than 50,000 55 29.7
50,000-100,000 18 9.7
101,000-250,000 58 31.4
251,000-500,000 14 7.6
More than 500,000 6 3.2
No response 34 18.4
What was the number of employees at start up Frequency Percentage
None 15 8.1
1-10 33 17.8
11-25 36 19.5
26-100 50 27.0
Over 100 2 1.1
No response 49 26.5
What is the anticipated number of employees at start up Frequency Percentage
None 6 3.2
1-10 15 8.1
11-25 22 11.9
26-100 22 11.9
Over 100 2 1.1
No response 118 63.7
17

19. Business Expectations
On business expectations, 38.9% of the entrepreneurs indicated that their businesses will grow steadily over the years, 21.6%
their businesses will become of regional importance, 18.4% indicated that they will become of national or international
importance and 4.3% just provide them with a living (figure 8).
Figure 8: Business Expectations
4.3 BUSINESS KNOWLEDGE
Under business knowledge the TriStart tool includes knowledge and business plan of the entrepreneurship.
4.3.1 Knowledge and Business plan
Knowledge on business functions
In a scale of 1 (not at all knowledgeable) to 5(deeply knowledgeable), the entrepreneurs rated their level of knowledge in
business strategy, marketing, sales, accounting, finance, research, manufacturing, administration and personnel functions of a
business. On business strategy, 21.6% of the entrepreneurs indicated that they were deeply knowledgeable and on the other
hand 18.9 % of the entrepreneurs were not at all knowledgeable. 31.4% of the entrepreneurs were deeply knowledgeable on
marketing, 27.6 % knowledge and 21.6% quite knowledgeable. On sales 31.4% were deeply knowledgeable. On accounting,
responses on quite knowledgeable and deeply knowledgeable intertwined at 23.2%. 28.6% of the entrepreneurs indicated that
they were knowledgeable on research.
Table 7: Responses on Knowledge and business plan
Knowledgeable
knowledgeable
knowledgeable
knowledgeable
No response
knowledge
Somehow
Not at all
Deeply
Quite
Business Strategy 18.9(35) 11.9(22) 28.6 (53) 11.4(21) 21.6(40) 7.6(14)
Marketing 6.5(12) 9.2(17) 27.6(51) 21.6(40) 31.4(58) 3.8(7)
sales 8.1(15) 7(13) 27.6(51) 20(37) 31.4(58) 5.9(11)
Accounting 18.4(34) 13(24) 23.2(43) 23.2(43) 18.9(35) 3.2(6)
Finance 20.5(38) 16.2(30) 22.7(42) 16.8(31) 17.8(33) 5.9(11)
Research 13.5(25) 8.6(16) 28.6(53) 21.1(39) 22.2(41) 5.9(11)
Manufacturing 37.8(70) 5.9(11) 9.7(18) 2.7(5) 13.5(25) 30.3(56)
Administration 14.6(27) 7.0(13) 20.5(38) 20.5(38) 33(61) 4.3(8)
Personnel 18.4(34) 8.1(15) 16.8(31) 19.5(36) 32.4(60) 4.9(9)
18

20. On contents of the business plan
In a binary response 71.9% of the entrepreneurs indicated that their business plan included an executive summary, 70.3%
mission/vision statement, 72.4% ownership statement, 74.1% market analysis, 75.7% market analysis, 77.8% customer buying
pattern, 80% sales and promotion strategy, 80.5% sales forecast, 77.8% customer care plan, 78.9% personnel analysis plan,
74.1% profit and loss statement, 75.1% cash flow protection among others (table 8).
Table 8: Contents of the Business Plan
Business plan includes: Yes No No response
Executive summary: 24.9(46) 71.9(133) 3.2(6)
Mission or vision statement 27.0(50) 70.3(130) 2.7(5)
Ownership statement 24.9(46) 72.4(134) 2.7(5)
market analysis 23.2(43) 74.1(137) 2.7(5)
Competition analysis 21.6(40) 75.7(140) 2.7(5)
customer buying pattern 19.5(360 77.8(1440 2.7(5)
sales and promotion strategy 17.3(32) 80(148) 2.7(5)
sales forecast: 16.2(30) 80.5(149) 3.2(6)
customer care plan 18.9(35) 77.8(144) 3.2(6)
personnel analysis plan 18.4(34) 78.9(146) 2.7(5)
profit and loss statement: 23.2(43) 74.1(137) 2.7(5)
cash flow protection 21.6(40) 75.1(139) 6(3.2)
balance sheet 21.1(39) 75.7(140) 6(3.2)
Importance assumptions statement 10.3(19) 87(161) 2.7(5)
* Percentages are outside the brackets
4.4 Experience
4.4.1 Work experience
Number of years of work experience
37.8% of the respondents had work experience of 6 to 15 years, 33% 2 to 5 years of work experience, 19.5% 16 to 25 years and a
small portion (2.2%) had more than 25 years. This indication that work experience is a motivation to many entrepreneurs
(figure 9).
Figure 9: Work Experience
19

21. Responsibility held
About average of the entrepreneurs had held the responsibility of owner/manager and 30.3% had held responsibility of a team
leader (figure 10).
Figure 10: Highest level of responsibility held
Other factors on work experience
48% of the entrepreneurs indicated that the core group of people he /she works with includes those he/she had worked with
in the past.
Figure 11: Are the people you work with previous colleagues
On relevance of work experience to business venture, 41.6% of the entrepreneurs indicated the it was directly relevant, 16.2%
relevant and 9.7% quite relevant but with new skills required (table 9)
20

22. Table 9: Relevance work experience to business venture
Relevance of work experience Frequency Percentage
Directly relevant 77 41.6
Relevant 30 16.2
Quite relevant, but with new skills required 18 9.7
A totally new type of business 25 13.5
No response 35 18.9
4.4.2 Business Experience
In a binary response, 45.4% of the entrepreneurs have worked in a wide range of industries, 63.2% have worked in a wide range
of functions, 56.8% have experience as a director of business, 62.2% have a special technical expertise, 81.1% have experience
of building a business team and 77.3% have previously raised funding for a business. Interestingly, 68.1% have not previously
raised funding for a business.
Table 10: Business Experience
Business Experience Yes No No response
I have worked in a wide range of industries 45.4(84) 53(98) 1.6(3)
I have worked in a wide range of functions 63.2(117) 34.6(64) 2.2(4)
I have experience as a director of business 56.8(105) 41.1(76) 2.2(4)
I have a special technical expertise 62.2(115) 36.2(67) 1.6(3)
I have experience of building a business team 81.1(150) 14.6(27) 4.3(8)
I have previously raised funding for a business 77.3(143) 21.1(39) 1.6(3)
I have previously raised funding for a business 30.3(56) 68.1(126) 1.6(3)
4.5 Market position
Marketing position involves sources of support, competitive advantage, and product
4.5.1 Sources of Support
On sources of support 79.5% indicated team members as very important, 35.7% of the entrepreneurs indicated partner and
children as important, 71.9% cited suppliers as very important, 87% customers as very important and 60% cited professional
services as very important (table 11).
Table 11: Sources of Support
Sources of Support Very Important Important Not relevant No response
Team members 79.5(147) 14.6(27) 3.8(7) 2.2(4)
Partner and Children 44.3 (820 35.7(66) 14.1(26) 5.9(11)
wider family 23.8(44) 34.1(63) 37.8(70) 4.3(8)
Friends 35.7(66) 42.2(78) 16.2(30) 6(11)
Suppliers 71.9(133) 17.8(33) 6.5(12) 3.8(7)
Customers 87(167) 7.6(14) 2.2(4) 3.2(6)
Government support agencies 60.5(112) 29.7(55) 6.5(12) 3.2(6)
Professional services 60(111) 27(50) 9.7(18) 3.2(6)
4.5.2 Competitive advantage
On a binary response 47 % of the entrepreneurs indicated that their business offer products/services to a brand new group of
customers. 53.5% indicated that they had not modified their products/services to give greater customer appeal and 54.6% do
not apply new methods or technology to provide products/services at lower cost (table 12).
21

23. Table 12: Competitive Advantage
The business will/does Yes No Response
Offer products/services to a brand a new group of customers 47(87) 49(90) 4 (8)
Have technology that is new 37.3(69) 58.9 (109) 3.8(7)
Modify existing products/services to give greater customer appeal 45.4(84) 53.5(99) 1.1(2)
Apply new methods or technology to provide products/ services at lower cost 44.3(82) 54.6(101) 1.1(2)
4.5.3 Product
Further on a binary response, 76.8% of the entrepreneurs indicated that the products and services they offer were customer
friendly. 53.5% on the hand indicated that their products and services were not offered in a competitive way and 63.8% were
not offered in a quick way.
Table 13: Product
The business will/does offer products and services in a more Yes No Response
Customer friendly way 76.8(142) 22.2(41) 1.1(2)
Competitive way 44.9(83) 53.5(99) 1.6(3)
Quick way 35.1(65) 63.8(118) 1.1(2)
Flexible 51.4(95) 47(87) 3(1.6)
4.6 Style
4.6.1 Communication
90.8% of the entrepreneurs surveyed indicated that they prefer when success brought about their effort is attributed to everyone
in the team. 54.1% of them indicated that for effective team performance formal communication must be enhanced.53.5% of
the entrepreneurs described their communication style as predominantly formal. 41.6% of the entrepreneurs indicated that
they communicate frequently when there is failure around. 62.7% of the entrepreneurs indicated that they believed that the
most effective team will have detailed systems and procedures. Further 58.4% of the entrepreneurs indicated that they naturally
communicate what needs to be done by assigning clear responsibilities and tasks (table 14).
22

24. Table 14: Communication
Do you prefer it when success brought about by your effort is? Frequency Percentage
Attributed to everyone in the team 168 90.8
Attributed primarily to yourself 12 6.5
Both of the above 1 0.5
No response 4 2.2
Which do you think is more important for effective team performance Frequency Percentage
Formal communication 100 54.1
Informal communication 64 34.6
Both formal and informal communication 18 9.7
No response 3 1.6
How do you describe your communication style? Frequency Percentage
Predominantly formal 99 53.5
Predominantly Informal 78 42.2
No response 3 1.6
When do you communicate more frequently? Frequency Percentage
When the team is performing well 72 38.9
When there is failure all around 77 41.6
Both of the above 29 15.7
No response 7 3.8
I believe that the most effective team will have Frequency Percentage
Detailed systems and procedures 116 62.7
Freedom to act as needed 60 32.4
Both of the above 2 1.1
No response 6 3.2
Do you naturally communicate what needs to be done by Frequency Percentage
Using a broad picture of what should be done 68 36.8
Assigning clear responsibilities and tasks 108 58.4
Both of the above 3 1.6
No response 6 3.2
4.6.2 Team preferences
On team preferences 65.4% of the entrepreneurs surveyed indicated that they would like to be part of the team that encourages
their individuals to do their own things. Whereas 56.8% would like to be part of as a team in which individual contributions are
encouraged and appreciated. 83.2% believed that business needs teams that behave in predictive ways. Further 73% of the
entrepreneurs indicated that it is important that the team members understand and agree on a vision for the company (table
15).
23

25. Table 15: Team Preferences
I would like to be part of a team: Frequency Percentage
That encourages their individuals to do their own things 121 65.4
Where the individuals are not encouraged to do too many things on their own 51 30.8
Both 1 .5
No response 6 3.2
In which individual contributions are encouraged and appreciated 105 56.8
Where team working is considered more important than individual contributions 71 38.4
Both 3 1.6
No response 6 3.2
I believe that business needs teams that
Behave in predictable ways 154 83.2
Don’t necessarily behave in predictable ways 24 13.0
No response 7 3.8
For me it is important that the team members
Understand and agree on a vision for the company 135 73.0
Are given clear, systematic roles and procedures 39 21.1
Both 3 1.6
No response 8 4.3
4.6.3 Attitude
In a scale of 1 (does not apply to me) to 5(applies to me) the entrepreneurs indicated that looking at the nuts and bolts of the
organization applies to them. 73.5% of the entrepreneurs indicated that looking out for new opportunities and 63.8% of the
entrepreneurs generating 50.3% indicated that, “I hate uncertainty”, applies to them.
Table 16: Attitude
How strongly do you agree with the Does not apply No
2 3 4 5(applies to me)
following statements to me (1) response
I Look after the nuts and bolts of the
16.8(31) 5.4(10) 7(13) 13(24) 53.5(99) 4.3(8)
organisation
I will risk bankruptcy if the potential
15.7(29) 8.1(15) 18.4(34) 17.3(32) 38.9(72) 1.6(3)
rewards are big enough
I am on the lookout for new
0.5(1) 1.6(3) 9.2(17) 13(24) 73.5(136) 2.2(4)
opportunities
I generate new ideas leading to changes - 3.2(6) 8.1(15) 21.6(40) 63.8(118) 3.2(6)
I hate uncertainty 14.6(27) 5.4(10) 16.2(30) 10.8(20) 50.3(93) 2.7(5)
4.7 TriStart Individualized Reports
By completing the TriStart evaluation the entrepreneurs were assessed against the TriStart entire database of global start-up
and early stage businesses on which the TriStart research programme is based. The entrepreneur’s TriStart evaluation score
reflects his/her current likelihood of being successful in his/her business venture. The evaluation identifies three core component
categories within which the 19 critical factors sit. These are knowledge and skills; market and technology and entrepreneurial
spirit.
Overall the women fund beneficiaries scored better on business readiness as compared to youth fund beneficiaries. 47.3% of
the youth fund and 36% of the women beneficiaries surveyed scored 51-75%.
24

26. Table 17: Cross tabulation on type of funding received and Overall Tristart Evaluation results
Overall results
Type of funding received Total
0 -25 26-50 51 -75 76 -100
Youth fund 1.8 (2) 48.2 (53) 47.3 (52) 2.7 (3) 110
women fund 2.7 (2) 61.3 (46) 36 (27) 0 75
Total 2.2 (4) 53.5 (99) 42.7 (79) 1.6 (3) 185
4.7.1 Knowledge and Skills
Among the core components of TriStart tool is knowledge and skills. Overall 63% of the entrepreneurs both from women and
youth fund scored 26-50% on knowledge and skills and 36% scored 51-75% (figure 12).
Figure 12: Knowledge and Skills
Some 61% of the youth beneficiaries scored 26 -50% whereas 68% of the women fund beneficiaries scored the same. 39.1% of
the youth fund beneficiaries scored 51-75% whereas 32% of the women fund scored the same (table 18).
Table 18: Cross tabulation on type of funding received and; Knowledge and skills
Knowledge and Skills Chi-Square
Total
0 -25 26-50 51-75 P-value
Type of funding Youth fund 0.0% 60.9% (67) 39.1%(43) 100.0%(110) 0.314
received Women fund 1.3% (1) 66.7%(50) 32.0%(24) 100.0%(75)
Total 0.5% (1) 63.2% (117) 36.2%(67) 100.0%(185)
4.7.2 Market and Technology
A majority of the entrepreneurs (98%) scored 0 -25% on market and technology. An indication that entrepreneurs are not well
prepared in market and technology.
25

27. Figure 13: Market and Technology
The cross tabulations results indicate that 97% of the youth fund beneficiaries scored 0-25% on market and technology and 98%
women fund beneficiaries scored the same (figure 16).
Figure 14: Cross tabulations on type of funding received and, Market and technology
Market and technology Chi-Square
0 -25 26-50 Total P-value
Type of funding Youth fund 97.3%(107) 2.7%(3) 100.0%(100) 0.522
received Women fund 98.7% (74) 1.3%(1) 100.0%(75)
Total 97.8%(181) 2.2%(4) 100.0%(185)
4.7.3 Entrepreneurial Spirit
On entrepreneurial spirit 98% of the entrepreneurs scored 26-50%. Interestingly only 1% of the entrepreneurs scored 51-75%
(figure 15).
Figure 15: Entrepreneurial Spirit
26

28. Cross tabulations on type of funding received and entrepreneurial spirit results indicate that 97.3% of the youth fund
beneficiaries scored 26-50% whereas 100% of the women fund beneficiaries scored the same. Among the women fund none
of the beneficiaries scored 51- 75%.
Table 19: Cross tabulation on type of funding received and entrepreneurial spirit
Entrepreneurial spirit Chi-Square
Total
0 -25 26-50 51-75 P value
Type of funding Youth fund 0.9% (1) 97.3%(107) 1.8%(2) 100.0%(110) 2.079
received Women fund 0.0% 100.0% (75) 0.0% 100.0%(75)
Total 0.5%(1) 98.4%(182) 1.1%(2) 100.0%(185)
4.8 TriStart Factors
The TriStart evaluation grades the entrepreneurs’ strengths against each of the 19 factors critical to business success. Each factor
is graded as high, medium or low.
4.8.1 Market and Technology
39.5% of the entrepreneurs were rated lowly on technology, 36.8% rated medium and 23.8% rated highly.47.6% of the
entrepreneurs were rated lowly on market status, 44.9% rated as medium and 7.6% as high. About two thirds (62.2%) of the
entrepreneurs were rated as medium on customer orientation (table 20)
Table 20: Rating on Market and Technology
Rating Low Medium High Chi-square P
Type of funding Women Youth Women Youth Women Youth value
Technology
44 (33) 36.4(40) 36(27) 37.3(41) 20 (15) 26.4(29) 0.487
orientation
Market status 52.0(39) 44.5(49) 41.3(31) 47.3(52) 6.7 (5) 8.2 (9) 0.604
Market Prospects 9.3(7) 7.3 (8) 17.3(13) 31.8 (35) 73.3(55) 60.9(67) 0.087
Customer
5.3(4) 16.4(18) 77.3(58) 51.8(57) 17.3(13) 31.8(35) 0.002
Orientation
4.8.2 Experience and Skills
On experience and skills, 46.4% of the youth entrepreneurs rated breath of experience as high and 34.7% of the women
entrepreneurs rated it as low. Business experience was rated medium on average by both youth and women entrepreneurs.
Business planning expertise on the other hand was rated lowly by both the youth and women entrepreneurs. Interestingly level
of responsibility was rated highly by both youth and women entrepreneurs (table 21).
Table 21: Rating on Experience and Skills
Rating Low Medium High Chi Square
Type of Funding Women Youth Women Youth Women Youth P- value
Breadth of Experience 34.7(26) 27.3(30) 32.0(24) 26.4(29) 33.3(25) 46.4(51) 0.208
Business Experience 10.7(8) 13.6(15) 57.3(43) 59.1(65) 32.0(24) 27.3(30) 0.711
Business planning 58.7(44) 54.5(60) 16.0(12) 19.1(21) 25.3(19) 26.4(29) 0.822
expertise
Business Area 48.0(36) 40.9(45) 36.0(27) 42.7(47) 16.0(12) 16.4 (18) 0.600
Expertise
Level of responsibility 10.7(8) 8.2(9) 30.7(23) 42.7(47) 58.7(44) 49.1(54) 0.248
Finance and 26.7(20) 24.5(27) 42.7(32) 41.8(46) 30.7(23) 33.6(37) 0.901
Accounting
Administration 22.7(17) 19.1(21) 29.3(22) 30.9(34) 46.7(35) 50(55) 0.597
Sales and Marketing 14.7(11) 9.1(10) 41.3(31) 44.5(49) 44(33) 46.4(51) 0.501
27