Entrepreneurial Skills and Sustainability of Youth Projects in Mathare Constituency, Nairobi County, Kenya

Abstract

Youth unemployment remains a pressing global issue, with approximately 267 million individuals aged 15-24 years out of work, representing nearly 22% of this age group worldwide. These young people face significant challenges in the labor market, exacerbated by temporary unemployment, underemployment, and the recent COVID-19 pandemic. The survival rates of youth enterprises paint a concerning picture, with developed nations like the United States seeing only about 45% of such businesses surviving beyond five years. The situation is even more dire in Asia and Africa, where merely 22% and 16% of enterprises, respectively, persist beyond the five-year mark. In light of these challenges, a comprehensive study was conducted to explore the relationship between entrepreneurial skills and the sustainability of youth entrepreneurial projects. The research adopted a mixed-methods approach, focusing on the impact of marketing, leadership, accounting, and networking skills on the longevity of youth-owned ventures. Grounded in human capital and resource dependency theories, the study targeted 688 members across 77 youth entrepreneurship projects in Mathare constituency. The sampling process involved selecting all projects for study, followed by a random selection of individuals from each project, resulting in a final sample size of 252 participants based on Yamane's formula. Data collection employed questionnaires and interviews, with research instrument validity ensured through expert evaluation and reliability tested via the test-retest method. The collected data underwent rigorous analysis, with quantitative information subjected to descriptive and inferential statistical analysis and presented in tabular form, while qualitative data was processed through thematic analysis. The findings revealed varying degrees of influence for different entrepreneurial skills on project sustainability. Marketing skills demonstrated a moderate positive correlation (r = 0.443, p < 0.05), indicating their significant impact on project longevity. Respondents highlighted competitive pricing and high product quality as key strengths, but noted challenges in promotion and data-driven marketing strategies. Leadership skills showed a weak positive correlation (r = 0.391, p < 0.05), with over 85% of participants agreeing on their crucial role in sustainability, particularly in effective client management and team motivation. Networking skills emerged as the most influential factor, exhibiting a strong positive correlation (r = 0.601, p < 0.05) with project sustainability. This underscores the substantial impact of networking in expanding business opportunities and fostering growth. Surprisingly, accounting skills showed only a minimal positive correlation (r = 0.137) that was not statistically significant (p = 0.083 > 0.05), suggesting their limited direct impact on sustainability in this context. The study's conclusions align with previous research, highlighting the pivotal roles of marketing, leadership, and networking skills in project success. Based on these findings, several recommendations were put forth. These include providing targeted training in marketing and networking skills to enhance youth entrepreneurs' capabilities in these critical areas. The selection and development of competent leaders within youth entrepreneurship projects was emphasized as a key factor in ensuring long-term sustainability. Additionally, the study stressed the importance of leveraging social networks for business growth and expansion. While accounting skills did not show a significant direct correlation with sustainability, the research still emphasized the importance of accessing accounting expertise for effective financial management. This suggests that while young entrepreneurs may not need to be accounting experts themselves, having access to financial management resources and guidance remains crucial for the overall health and longevity of their ventures.