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Research proposal: Barriers and enablers of entrepreneurial activities

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Contents

SECTION 1: INTRODUCTION .................................................................................................................. 4

1.1 Background ......................................................................................................................................... 4

1.2 The study Aim..................................................................................................................................... 5

1.3 The Study Questions ........................................................................................................................... 5

1.4 Significance of the Study .................................................................................................................... 5

SECTION 2: LIMITATIONS OF THE STUDY .......................................................................................... 5

SECTION 3: METHODOLOGY ................................................................................................................. 6

3.1 The Study Outline ............................................................................................................................... 6

3.2 Primary Research of the study ........................................................................................................... 6

3.2.1 Primary Research Techniques ...................................................................................................... 6

3.2.2 The information Gathering Processes .......................................................................................... 6

3.3 Secondary Research of the Study........................................................................................................ 7

3.4 Quantitative Study data ....................................................................................................................... 7

3.4.1 Type of used Quantitative Data.................................................................................................... 8

3.4.2 The purpose of using Quantitative Data....................................................................................... 8

3.5 Qualitative Research Data ................................................................................................................... 8

3.5.1 Type of Qualitative Research Data used ...................................................................................... 8

3.5.2 Reasons for using the Qualitative Research Data ........................................................................ 9

SECTION 4: ANALYSIS OF THE FINDING ............................................................................................. 9

4.1 The results ........................................................................................................................................... 9

4.2 The Study Outcome .......................................................................................................................... 10

4.3 The Study Recommendations ........................................................................................................... 12

SECTION 5: THE CONCLUSION ............................................................................................................ 13

References ................................................................................................................................................... 14

Appendices .................................................................................................................................................. 17

SECTION 1: INTRODUCTION

1.1 Background

Entrepreneurial activity entails the processes of starting, running or design of business. The

business offers services or the goods it has identified in the market. The people who engage in

the process of entrepreneurship are called entrepreneurs. Entrepreneurship is also defined as the

process of developing and managing a business while taking risks involved in the firm. The most

difficult part in entrepreneurship is coming up of the most profiting business idea in a place and

taking risks involved (Belwal 2014).

Most of the businesses require thorough research before indulging in the business. Every

business has its risks and barriers in which the entrepreneurs come across. Most of the obstacles

make the environment for entrepreneurship hard such that the entrepreneurs without appropriate

business skills cannot survive. The barriers of the business start at the time business people start

thinking about how to start the business (Belwal 2014).

The barriers to entrepreneurship include the cultural, educational, administrative and financial

barriers. The cultural barriers prevent the entrepreneur from engaging in business in which the

community norms and practices are against. The goods which are not consumed by some people

affect the demand for the commodity. The service industries are affected because the

entrepreneurs do not engage in the services the society is against. Such services can be profiting,

but the market of such service or product is down in a given place.

On the other hand, there are enablers of particular business opportunities. The enablers of the

business assist the entrepreneur to develop economically. The enablers provide a conducive

environment for the type of the business established. The enabler might provide the efficient

market for the service or product. The process of production of the goods and the services might

also be made easier and cheap compared to other similar environments (Effah 2016).

1.2 The study Aim

The aim of this research is to highlight the common barriers and enablers of the entrepreneurial

activities in urban areas. The research aims at outlining the barriers and the enablers the extent in

which they affect the business. The obstacles and the enablers should be listed in the order of

either hindering businesses or the degree of promoting the businesses.

1.3 The Study Questions

What are the barriers to entrepreneurial activity?

What are the enablers of entrepreneurial activity?

How do the barriers of entrepreneurship hinter the growth of the business?

How do the enablers of business promote the growth of the business?

1.4 Significance of the Study

The research on the barriers and the enablers of business is very crucial to the young

entrepreneurs who want to start a business. The business people should know the risks in the

commercial activity they want to engage in. Most of the business people fail in the activities they

venture in due to lack of the skills and risk management. Business is not all about starting it

requires a person who can manage the business. My research will identify the risks involved in

various entrepreneurial activities and the methods used to curb the effects f entrepreneurship.

Also, it will give the information on how conducive environment makes the business grow.

SECTION 2: LIMITATIONS OF THE STUDY

Limitations of the Research

The research activity involves the collection of data from the business people around. The

research activity encounters some problems such as

Small sample of the population

• Unwillingness of the respondents to answer some questions

• Lack of enough funds

• Los of the data

• Biasing of the answers and the data collected

• Confusion of the answers to surveys

• Trouble surveying of different demographics

SECTION 3: METHODOLOGY

3.1 The Study Outline

I have different methods and techniques to collect data about the research topic. The methods

used to collect data have different requirements and approaches to collect the statistical

information. The process of collecting the raw data and analyzing took two weeks. The

secondary research took three weeks since it’s more complicated than the primary research.

3.2 Primary Research of the study

The primary research of the topic is based on the suggestion of the public regarding the barriers

and the enablers of the entrepreneurial activities.

3.2.1 Primary Research Techniques

• Closed and open Questionnaires

• Making observation

• Carrying out interviews with the business association groups

• Carrying out forums and Seminars

3.2.2 The information Gathering Processes

Questionnaires

I used the both types of questionnaires. These questionnaires aimed the business people. I

randomly selected 84 members of the business organizations. The study was demographically

biased since the exercise was carried out in one urban center.

Observation

I also made a substantial observation on how people reacted to the risks involved in the

commercial activities. I observed the people reaction towards certain barriers and noted down.

Interviews

I interviewed different types of the business people including the wholesalers and the retailers.

The people who were involved in the interview included the government finance counselors,

matatu operators, real estate agents and the distributors. All the people had the different

perspective on how they tackle the barriers and how they consider the enablers when starting a

new business.

Seminars and Public Forums

The public forums aimed at educating the business people on how to use utilize some of the

facilitators effectively to boost their business. The debate on how to tackle the barriers

highlighted the some of the barriers.

3.3 Secondary Research of the Study

The secondary research involved the use of the business journals, magazines, and the daily

newspapers. The examined the data collected in the primary research according to the trend in

the magazines. I also used the international papers to certify the information if it was up to date.

3.4 Quantitative Study data

The data gives the mode of the entrepreneur responses. The quantitative type of the data that was

used entailed the number of the people who mentioned the barrier they are aware of. Some of the

respondents were aware of some enablers while others emphasized on some issues. The

quantitative data gave results which were countable after analysis of the data. The data was used

in the generation of the bar graphs. The number of the people who never knew any of the barriers

also included in the analysis.

3.4.1 Type of used Quantitative Data

The questionnaires were used to collect the quantitative data. The number of the people who

gave the particular barriers or enablers was sampled together.

3.4.2 The purpose of using Quantitative Data

The quantitative data is very important in the calculation of the variables under the study. The

advantages of using the quantitative data include the following:

• It provides a reliable data, and the objective of the research is fulfilled.

• The analysis of the data is much easy since the statistical methods are applied

• The hypothesis of the study us well illustrated.

• The sample of the population represents the entire population.

• The variables are well evaluated.

3.5 Qualitative Research Data

The qualitative data gives information about the sample population which is not countable. The

methods used to tackle the barriers that come across during the entrepreneurial activities are an

example of the qualitative data collected. The qualitative data gives more information about the

quantitative data.

3.5.1 Type of Qualitative Research Data used

The qualitative data collected was non-numerical. Many of the business people apply for the

loans through another entrepreneur during the financial crisis.

3.5.2 Reasons for using the Qualitative Research Data

Qualitative data plays crucial role analysis of the uncountable data. The feeling of the business

people on the barriers is an example of the data analyzed using the qualitative techniques. The

benefits of using the qualitative data include:

• Creating transparency in providing more data.

• It gives deep information about the quantitative data.

SECTION 4: ANALYSIS OF THE FINDING

4.1 The results

From the results collected, most of the respondents highlighted that finance is the main barrier of

the entrepreneurial activities. Out of the 200 respondents, 80 people said that finance makes

many young entrepreneurs not to venture in the business opportunities. Most of the business

people have the ideas to start certain businesses, but due to lack of capital, they fail to

accomplish their mission.

Lack of education was the second barrier. Some of the respondents claimed that finance is not

the main barrier. They said that there are financial institutions that give loans to the business

people if they have good ideas. They said that lack of proper the high level of financial illiteracy

makes many people not able to run a business. The skills to evade the risks involved and the

methods used to compete with the customers are the main challenges related to the lack of good

educational skills. 60 respondents proposed the barrier.

The cultural beliefs are other barriers to business.30 respondents said that culture affects what

people consume. Some of the people cannot buy a certain good because they don’t use it

according to their culture. This affects the demand for a certain good or service in a place. Some

businesses cannot operate in some places due to such norms and religious beliefs.

30 respondents were not aware that businesses get barriers. They argued that if a business is

started, then it’s the entrepreneur who knows how to run his or her business.

In the terns of the enablers of the business, 50 people said that loans are the best enablers of the

commercial activities. They said that the banks give financial support at interest to the businesses

when they face an economic crisis. The loans offered to make the entrepreneur revise his

business plan and indulge into the business again. Sometimes the entrepreneur needs to expand

his or her business, and he is not able to raise the cash. He, therefore, gets the financial boost

from the local banks at a fair interest.

90 of the respondents said that the good security given by the government makes the business

people run their activities without the fear of being robbed. Security is very important when it

comes to business.

Good transport and communication systems are essential for the business to survive. The goods

are transported efficiently without delay.Communications are crucial in the service industry. 30

of the respondents mentioned the infrastructure as the key to the successful business.

30 respondents were not sure of the enablers of the commercial activities around.

4.2 The Study Outcome

From the research done, it is evident that most of the entrepreneurs fail to start a business due to

lack funds. The young entrepreneurs are the people who are highly affected. They have the ideas,

but due to lack funds, they never start their businesses. They cannot acquire loans due to lack of

the collaterals. 40% of the entrepreneurs lag behind regarding business due to lack of funds.

Another 30% of the entrepreneurs cannot produce certain goods or services due to their cultural

and religious activities. The culture plays a big part in the type of the goods produced. This

affects the demand for certain goods.15% of the entrepreneurs lack the financial and education

skills. The financial skills are very important in solving the problems which emerge daily.

The enablers of the business activities assist the entrepreneurs to grow. The loans help the

established people or the entrepreneurs with good business ideas to get financial support and start

new or improve their existing businesses.25% of the respondents said this is the main enabler of

commercial activities around.45% of the retailers believe that the success of a business depends

on the security. Some of the businesses are vulnerable to theft and robbery cases. This makes

most of the business people not able to start such businesses.15% of the business people start

their activities in the places with good infrastructure. Transport and communication are very

important to market and supply the goods and the services.

The graphs below show the comparison of various barriers and enablers respectively.

Fig 1: Graph of the entrepreneurial barriers

financial

barrier

culture lack of

education

Not aware

Quantity

Graph of the entrepreneurial barriers

Number

of respondents

Barrier

Fig 2: Graph of the entrepreneurial enablers

4.3 The Study Recommendations

It is recommended that most of the entrepreneurs fail to prosper in the commercial activities thy

engage in due to lack of enough funds (Effah 2016). Some of the entrepreneurs want to improve

their businesses, but due to inadequate funds, they lack the morale. Lack of educational skills

makes most of the young entrepreneurs fail in the first three years of their career. The

entrepreneurs should be aware of the barriers before starting any business.

The enablers of the business activities favor the growth of the business. The presence of the

infrastructure and security makes the businesses grow easy. The business people should

appreciate the enablers of the business and establish their businesses in the places in which the

environment is conducive for certain business.

100

Access to loans Good security Good

infrastructure

Not aware

Quantity

Enabler

Number of the Respondents

Graph of the Entrepreneural enablers

SECTION 5: THE CONCLUSION

The purpose of this research was to determine the barriers and the enablers of the entrepreneurial

activities.

From the research undertaken, the common impediments to the business activities are the lack

funds, cultural and religious beliefs, and lack of financial skill. Large percentage suggest that

lack of finance is the main barrier in entrepreneurship.

Also, the research also indicates the enablers of the business activities. The primary enablers

are good security, infrastructure and the provision of loans by the banks. A Large percentage of

the entrepreneurs suggests that security is critical for the business to grow. The scholars

who will go through this research work will understand the difficulties the entrepreneurs go

through, how to tackle certain business barriers and take advantage of the enablers of the

business in a given commercial area.

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Appendices

Appendix 1: Graph of the Entrepreneurial barriers

Appendix 2: Graph of entrepreneurial enablers

financial

barrier

culture lack of

education

Not aware

Quantity

Graph of the entrepreneural barriers

Number

of respondents

Barrier

100

Access to loans Good security Good

infrastructure

Not aware

Quantity

Enabler

Number of the Respondents

Graph of the Entrepreneural enablers

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