Family Business Ownership and Entrepreneurial Innovation Among the Youth in Hell's Gate Ward, Naivasha Sub-County, Kenya

Tabithah Kimani

doi:10.51867/ajernet.6.1.57

Authors

Tabithah Kimani
wanjirutabithah@gmail.com
St. Paul’s University, Limuru Kenya https://orcid.org/0000-0002-0725-9491

Keywords:

Business Ownership, Entrepreneurship, Entrepreneurial Innovation, Family, Hell’s Gate, Household, Kenya, Naivasha, Youth Unemployment

Abstract

Entrepreneurial innovation among Kenyan youth is crucial for addressing youth unemployment and stimulating economic growth. Despite entrepreneurship promotion efforts, only a small percentage of youth successfully transform innovative ideas into sustainable businesses. The study sought to investigate the influence of family business ownership on entrepreneurial innovation among the youth in Hell’s Gate Ward, Naivasha Sub-County, Kenya. The study was anchored on the Resource-Based View (RBV) theory and utilized the cross-sectional survey research design. The target population comprised 13,161 youths in Hell’s Gate ward in Naivasha Sub-County, Kenya. The study used convenience sampling technique to select 60 youths from a church in Hell’s Gate Ward. Data was collected using a questionnaire with closed-ended question and open-ended questions for collecting continuous data. Data was analysed using frequencies, percentages and cross-tabulation with chi-square with the aid of Statistical Package for the Social Sciences (SPSS) version 26. Results showed that 39% of youth in Hell’s gate Ward had engaged in entrepreneurial innovation. This study concluded that family business ownership had a statistically significant influence on entrepreneurial innovation among the youth in Hell’s Gate Ward. The findings showed that 58.1% of youth from households that owned a business engaged in entrepreneurial innovation, compared to only 17.9% of those whose households did not own a business (X² = 9.999, p = .002). Conversely, youth from households that had operated a business for five years and above were the most likely to engage in entrepreneurial innovation (76.5%). These were followed by those from households with a business for five years or less (35.7%). On the other hand, only 17.9% of youth from households that had never owned a business engaged in entrepreneurial innovation (X² = 15.360, p = .000). The findings also show that youth involvement in family business decision-making significantly influenced their engagement in entrepreneurial innovation. Among those whose households owned a business but did not involve them in decision-making, only 28.6% engaged in entrepreneurial innovation. However, among those actively involved in decision-making, 66.7% engaged in entrepreneurial innovation (X² = 13.305, p = .001). These results suggest that both the duration of business ownership and youth participation in business decision-making play significant roles in fostering entrepreneurial innovation among young people. Based on the findings, the study recommends that policy makers and development practitioners should direct their interventions towards youths in families that do not own a business or those that have operated businesses for less than five years. Policy makers and practitioners should also develop interventions that encourage families to involve their children and youth in operating family businesses.

Dimensions

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