Impact of Education and Training on Entrepreneurial Behavior in Kenya: An Application of the Resource-Based Theories

Abstract

This study examined the impact of education, training, experience and access to credit on the behavior of entrepreneurs in Kenya. The focus is on the following specific behavioural traits: risk taking, innovativeness, focus on results and the sense of responsibility. To achieve the above objective a survey of over 170 Micro and Small Entreprises (MSEs) engaged in trade, manufacturing, construction, and service ventures was carried out in Kariobangi, Kasarani Division of Nairobi County in Kenya. The study applied non-parametric statistics (chi-square) tests on the null hypotheses of independence between education and training and the specific entrepreneurial behaviours mentioned above. The null hypotheses were all invariably rejected. Furthermore, multivariate analysis of variance was applied on the data. The results demonstrate that education and training, experience and access to credit have a strong influence on risk taking, innovativeness, focus on results and the sense of responsibility of the entrepreneurs. Therefore, this study concludes that both education and training have a significant positive impact on entrepreneurial behavior.

Key words: Micro and Small Entreprises, Education, Training, Risk taking Behavior, Innovativeness, Access to Credit, Entrepreneurial Behavior, Manufacturing, Services, Trade, Construction