Factors Affecting the Success of Start Up of Youth Enterprises in Nairobi County, Kenya

Abstract

Entrepreneurs all over the world are considered as central players in economics. Many factors come into play when starting a business, ultimately determining the success or failure of the enterprise. The factors could be financial, social, technological, human resource related or even based on the development of the product. As we continue to see some start-ups succeeding where others are failing, there is need to identify the combination of attributes that work for or against the success of these start up enterprises. This study was motivated by the need to determine the factors which affect the start up of youth enterprises in Nairobi County. To achieve this objective, the study collected data from start-up youth enterprises in Nairobi County. The study adopted a descriptive and exploratory research design. The sampling frame of this study were those youth enterprises that were newly established or were in the processes of being set up in Nairobi County in the category of electronics, telecommunications, general and retail, M-pesa, foodstuff stalls, cybercafés, graphics and design, hardware and welding. The data was collected through purposive sampling with the use of a structured interview guide and analysed using descriptive statistics such as mean and standard deviation. The study found that start-up youth enterprises in Nairobi County were affected by entrepreneurial skills possessed by the youths. The study findings indicate those youths who had undergone training and had skills enjoyed superior skills such as managing time well, handling of customers and in managing stock levels of their enterprises. Training has also helped the youth entrepreneurs to keep business records, balance their cash books, in analysis of profit and loses and in managing sudden increases in demand. Entrepreneurial innovativeness and proactiveness benefited the enterprises in attracting more customers, remaining visible, and in time management. Lastly, availability of funds and government legislation and policies also influenced the performance of the start-up enterprises. The study found that availability of funds influenced the type of enterprises the youths started and their viability while government policies and regulations viewed to be prohibitive, lengthy and unnecessarily bureaucratic interfere with the operations of the enterprises.