PhD Theses

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Business development services (BDS)
Otieno, Hellen; Kiraka, Ruth
While the role that micro, small and medium enterprises (MSMEs) play in all economies is universally acknowledged, only a small segment of small businesses is capable of making full use of opportunities and coping effectively with threats without assistance. Smallness confers some inherent competitive disadvantages and same sort of external support is warranted in order for these enterprises to each their full potential (OECD, 2004). Services to promote and enhance MSME competitive performance accordingly constitute important policy instruments in many countries including advanced ones, such as the USA. However, programmes and institutions designed to support small enterprises have reached and assisted only a minority of them. This chapter examines the meaning, scope, role and the changing perspectives of business development services (BDS).
Deriving a transparent dataspace-oriented entity associative algorithm
(Strathmore University, 2014-06) Shibwabo, Bernard K.; Wanyembi, Gregory W.; Kiraka, Ruth; Ateya, Ismail; Orero, Joseph
Organizations possess data residing in varied data sources though there is no effective way of integrating these repositories to provide information to end users transparently. This is primarily caused by the fact that the existing data is stored in databases that consist of varied models and techniques of both storage and access to data. The main aim of this research was to formulate a set of algorithms to support the development of a dataspace support platform that integrates data residing in divergent data stores. These techniques facilitate the association of data entities in a dataspace by enabling entity coexistence for integrating data residing in divergent data stores. The research objectives were to analyze the state of dataspace implementation, to develop a model that outlines the criteria for successful dataspace design, to develop a dataspace support platform that integrates data residing in divergent data stores and to conduct experiments to validate the scalability of the implemented dataspace support platform. In order to achieve these objectives, the soft systems theory is applied. A literature survey approach is adopted and supplemented from the findings by use of brainstorming and further experiments. The findings have been used to identify facts pertaining to the principles, design and implementation of a dataspace support platform. The final outcome consists of a set of algorithms, models and a test dataspace support platform. Access to information is facilitated through a more scalable, flexible and transparent platform regardless of the underlying data models. This results to a O(log n + k ) query response time coupled with a O(n) build time on the entire dataspace. In conclusion, the triggers for enterprise systems integration are apparent, and compliance is only one of numerous drivers pushing organizations towards achieving a more integrated outlook of enterprise data. With the dataspace-oriented entity associative algorithm, users can have the ability to harness or filter informational requirements so as to enhance decision making in terms of time, accuracy and availability of information.
Innovative Private Sector Development Instruments – an African Perspective
Kiraka, Ruth
Small and medium enterprises (SME) are viewed as a key driver of economic and social development in the African context. They represent a large number of businesses, generate a relative large proportion of employment and are widely considered to be vital for a country’s competitiveness. To be competitive, they need one key ingredient: innovation. However, they are often unable to develop appropriate and innovative products due to a general lack of financial strength as well as technical and managerial skills. A part from that, they operate in an environment with multiple challenges: On the macro level, these include bureaucratic legal and regulatory frameworks, poor physical infrastructure, and a multiplicity of taxes. On the meso level, the challenges include inadequate support in terms of business training and skills, the unavailability of information on markets, suppliers and partners, a limited access to finance as well as weak, fragmented and uncoordinated institutions supportive of SME. Nevertheless, opportunities for investing in SME development are given, they include the commercialisation of SME innovations, the provision of resources to SME so that they are able to conduct research and market testing, business incubation, the funding of indigenous knowledge development and transfer, the development or rejuvenation of industry clusters, and the establishment of SME support centres These initiatives can enhance SME competitiveness, create more opportunities for employment and economic development and address a number of the challenges listed above.
Managing International Development Agencies (IDAs)
(www.Management-Journal.com, ) Kiraka, Ruth; Manning, Karen; Armstrong, Anona
International development agencies (IDAs) operate in a context of diverse stakeholder interests. This requires them to consider the significance of each category of stakeholders to determine the level of interest and power to influence the operations of the IDA. Using interviews and mail questionnaires, fifty-six Australian-based IDAs were examined to determine the extent to which they perceive external stakeholders as influencing their work. The research showed that two categories of stakeholders – donors and governments, were considered the most influential and powerful, hence the need to give priority to their expectations and needs. The “weaker” stakeholders – development clients and partner agencies, had a high level of interest but low power of influence over IDAs. However, they legitimise the existence of IDAs, hence their needs cannot be overlooked. The challenge for the IDA is in balancing the needs of its different categories of stakeholders as ignoring some could result in undermining its credibility.
Micro, small and medium enterprise growth and innovation in Kenya: a case study on the Women Enterprise Fund
Kiraka, Ruth; Kobia, Margaret; Katwalo, Allan M.
This study sought to examine the growth and innovation in micro, small and medium enterprises in Kenya by assessing the performance of the Women Enterprise Fund (WEF) on these dimensions. The WEF, a Government of Kenya initiative, aims to develop and grow women-owned MSMEs. Five years since its inception in 2007, it is imperative to establish whether the Fund is achieving its objectives in reaching the intended beneficiaries with the right kind of funding and support. Using a mixed method approach, comprising qualitative and quantitative methodologies, the study examined the performance of the Fund at the micro, meso and macro levels. Fourteen constituencies in four Counties – Kakamega, Nairobi, Nakuru and Nyeri – were purposively selected. Stratified random sampling (the strata being the borrowing stream) of the entrepreneurs was used to ensure representativeness of the sample. Questionnaires were used in the survey of women owned MSMEs in combination with in-depth interviews and focus group discussions with selected respondent groups. Quantitative data were analysed using SPSS. Descriptive results show the extent of growth and innovation in the post loan period. Multivariate regression analysis sought to empirically establish the determinants of growth and innovation among women owned enterprises. Logistic regression models for the selected measures of growth and innovation were estimated using the maximum likelihood estimation technique. Qualitative data were content analysed for emerging themes and patterns which formed the basis for discussing study findings. Study findings show that although the general indicators reflect positive growth among women owned businesses in terms of total business worth, turnover, gross profit and number of employees, they obscure incidences of stagnation or decline in growth. Incidences of decline or stagnation were significant at between 15 to 30 percent across the four measures. The most common form of innovation was observed in the change or addition of new products in the post loan period. Innovations in terms of services, markets and sources of raw materials were, however, less common among women owned enterprises. The study finds no evidence of significant differences in growth and innovation among enterprises across geographical regions, borrowing stream and age groups. Overall, entrepreneur characteristics such as age, marital status, level of education and family size were poor determinants of growth. Business characteristics such as location, the person who manages the businesses and the age of the loans, were significant determinants of growth in the number of employees. Growth in number of employees is considered a critical proxy for the other forms of growth in terms of total business worth, turnover and gross profit. From the findings, locating an enterprise in an urban area increased the likelihood that the business would either stagnate on decline in its number of employees and gross profit. Urban decline on these indicators was partly attributed to heightened competition among low-end enterprises which characterise most women owned ventures in urban slums and informal settlements. Similar to the case in growth, entrepreneur characteristics of age, marital status, level of education and family size were poor determinants of business innovation. Only some of the business characteristics, growth factors and innovation factors were found to be significant determinants of innovation. Overall, women owned enterprises in urban areas lack the expected ‘urban advantage’ in terms of growth and innovation. The most widely provided complementary service was training which was accessed by one half of women entrepreneurs in the study. Other common complementary services included general education and awareness on how to run business and business progress monitoring. Although reported in interviews and group discussions, the following complementary services were rarely offered: networking, exhibitions, export promotion and product certification, supplementary loans, mobile banking and overdrafts. From the findings, it can ii be deduced that besides training, few complementary services were available to the majority of women borrowers of the WEF loans at a level that could meaningfully sustain businesses on the growth path and spur innovations. The Fund continued to face numerous challenges at the WEF secretariat, lender and borrower levels. The main challenges at the Fund level included inadequate WEF field personnel, inadequate fieldwork facilitation, low loan amounts, delays in disbursements and an inefficient multi-layered Fund structure. High cost of loan administration, competition with commercial bank products, poor dissemination of information, high demand/limited scope of coverage, lack of distinct product branding, lack of individual choices in group lending, high default rates, bureaucratic processes and limited business monitoring were the main challenges at lender level. For the borrowers, the challenges included limited and shrinking markets/competition, lack of business knowledge, misconception about the purpose of the Fund, diversion of the funds, low literacy among segments of women borrowers, lack of loan securities and domestic interference. To reform the Fund in a way that enhances its quality, service delivery and sustainability, as well as the growth and innovation of the enterprises, the study recommends that there should be: improved field level staffing at WEF, improved business monitoring, allocation of more resources to field teams, provision of individual loans, increase in amounts of loans, enhanced and standardised training, development of legal framework for default recoveries, increased funding to the CWES stream, business incubators for start-ups, enhanced revolving funds, rationalization of administrative costs, increase in the number of loan holding banks, timely disbursement of the funds and simplification of the application process.
Motives for starting and sustaining BDS : empirical evidence Kenya
Otieno, Hellen; Olomi, Donath R.; Kiraka, Ruth
The paper explains what motivates Business Development Services Providers (BDSPs) in Kenya to venture into and sustain their businesses. The study was done through the use of grounded theory methodology on eleven BDSPs in Kenya over twelve months between May 2008 and August 2010. The start-up motives were classified into three: extrinsic, intrinsic and philanthropic. Contrary to the dominant view that small business start-ups are driven principally by economic necessity, the study revealed that some BDSPs venture into and sustain their businesses mainly for intrinsic and philanthropic motives. These findings suggest that evaluation of sustainable BDS business should not be limited to the traditional economic theory of recovering costs but should take into account intrinsic and philanthropic rewards as well. The study enhances our understanding of “start-up motives” and “success” and in particular in the context of small firms. This knowledge is invaluable to scholars, teachers and policy makers involved in promoting small firms.
Situational analysis of the BDS Market : empirical evidence from Kenya
Otieno, Hellen; Olomi , Donath R.; Kiraka, Ruth
The paper analyses the situational forces in the Business Development Services (BDS) market in Kenya showing how BDS Providers’ (BDSPs) strategically respond to the forces in their environment. The study was done through the use of grounded theory methodology on eleven BDSPs, four micro and small enterprises (MSEs) and two BDS facilitators in Kenya over twelve months between May 2008 and August 2010. The study established that BDSPs operate under weak regulatory framework which encourages unfair competition longside donor agencies who continue to give free and/or subsidized services. The study also revealed that BDS services are largely unappreciated by MSEs many of who are operating under serious resource constraints. In addition, some of the MSEs do not appreciate professionalism. BDSPs respond to the situational forces in their environments using a number of strategies which evolve over time namely: client, product, differentiation, price, self-regulation diversification, and a simultaneous competition and collaboration. The study revealed paradoxical relationship between donor agencies and BDSPs showing how on one hand, BDSPs perceive donor agencies negatively as distorting the market by compromising small scale entrepreneurs’ willingness to pay for services and on the other hand, benefiting from the donor support.
Situational forces in the BDS market and BDS providers’ strategic responses : empirical evidence from Kenya
Otieno, Hellen; Olomi, Donath R.; Kiraka, Ruth
The paper presents situational analysis of the BDS market in Kenya showing how BDS Providers (BDSPs) respond in each situational context. The study was done through the use of grounded theory on eleven BDSPs, four small-scale entrepreneurs and two BDS facilitators in Kenya over twelve months between May 2008 and August 2010. The study established that BDSPs operate under weak regulatory framework which encourages unfair competition alongside donor agencies some of which continue to give free and/or subsidized services. BDSPs respond to the situational contexts in their environments using client, product, price, focus, diversification, and simultaneous competition and collaboration strategies.
Sustainabillty of business development services : gaps analysis of the Kenyan market
Otieno, Hellen; Olomi, Donath R.; Kiraka, Ruth
A key challenge in entrepreneurship and private sector development is the provision of sustainable Business Development Services (BDS). particularly for micro and small enterprises. This study investigates how sustainability of BDS can be achieved, and how some providers manage to develop sustainable BDS and not others. using Grounded Theory. The .findings suggest that there are at least nine specific demand-and-supply-side gaps in the BDS market which providers need to identify and fill if they are to become sustainable. The gaps relate to awareness. value, trust, quality, capacity, unwillingness to pay, appreciation, inability to pay and perception. How providers identify and fill these gaps depends on their strategic orientation, which is in turn shaped by their capabilities, their motivation to sustain the business and e:external factors. The findings have both theoretical and practical implications. Success in the industry requires a high level of dedication, commitment and patience than is typically needed in other industries. It takes time and personal sacrifice to invest in building relationships and trust with clients and incremental learning and innovation to fill the gaps. Filling some of the gaps requires collaboration among service providers. Some others require the action of the industry as a whole. The implications for policy is that BDS development endeavors should take into account the specific demands of the industry and take a holistic view that encourages the right kind of people to join the sector and for the gaps to be addressed at all levels.

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