ROLE OF EDUCATION ON ENTREPRENEURSHIP DEVELOPMENT IN

KENYA

STUDENT NAME:

1.

DANIEL NDERI
ADM NO: HD313-C006-3244/2012

2.

TIMOTHY OMONYWA
ADM NO: HD313-C006-3333/2012

UNIT INSTRUCTOR: MULYINGI PARTRICK

UNIT: HR3215- SED: METHODS OF ENTREPRENEURSHIP

DEVELOPMENT

MSC ENTREPRENEURSHIP JKUAT (KISII CAMPUS)

JULY 2013

TABLE OF CONTENTS
Title Page ................................................................................................................................... i
Table of Contents ...................................................................................................................... ii
1.0 Introduction ........................................................................................................................ 1
2.0 Development of Entrepreneurship Education in Kenya .................................................... 5
3.0 Challenges Facing Entrepreneurship Education in Kenya ............................................... 10
4.0 Conclusion ........................................................................................................................ 12
References ............................................................................................................................... 12

1.0

Introduction

International donor agencies such as the World Bank, UnitedNations Development Program, and
the African Development Bank have identified the small enterprise sector as a key to
developmentin African countries and Caribbean nations. These organizations have been funding
the setting up of educational institutions that nurture entrepreneurs and at the same time
influencing policy making within a nation that would influence the growth of entrepreneurship.
Audretsch and Thurik observe that entrepreneurship has emerged as the engine of economic and
social development throughout the world (Audretsch& Thurik, 2004; 144). According to
Schumpeter, the role of the entrepreneur is a prime cause of economic development.
Schumpeter developed his ideas during the first decades of the 20th century when small
businesses were considered a vehicle for entrepreneurship and a source of employment and
income. (Thurik, 2007:2)

The role of education in entrepreneurship development is buttressed by the results of a study

conducted by Meng and Liang (1996) involving entrepreneurs in Singaporedisclosed that
successful entrepreneurs have higher education levels compared to that of unsuccessful
entrepreneurs (p = 0.01). Seventy percent of successful entrepreneurs are university graduated,
while 23% are not. According to Meng and Liang (1996), Staw (1991), and Holt (1992), after
entering the entrepreneurial world, those with higher levels of education are more successful
because university education provides them with knowledge and modern managerial skills,
making them more conscious of the reality of the business world and thus in a position to use
their learning capability to manage business.

Similarly, Lussiers and Pfeifer (2001) also summarized that the entrepreneurs with higher
education level and experiences have greater chances of succeeding than the people without
education and experiences (quoted in Rose et. al., 2006). However, Minniti and Bygrave (2003)
have stated that people with more education are not necessarily more entrepreneurial.
Thapa(2007) in his study in Nepal has found that the education has positive effect on
entrepreneurial success.

This paper first deals with the question of why entrepreneurship, what would make the Kenyan
government develop policies that are geared towards fostering entrepreneurship development.

1.1 Why entrepreneurship

According to Green Paper, (2003) Entrepreneurship is the mindset and process to create and
develop economic activity by blending risk-taking, creativity and/or innovation with sound
management, within a new or an existing organization. From this definition the government
would be so much attracted to develop policies that would encourage entrepreneurship. Thus the
government would encourage the development of entrepreneurship mindset from the early age of
school going children to the moment they graduate from the education system. This has seen the
government develop curriculums that inculcate artisan, technical, skills to students that culminate
in entrepreneurship skills.

Looking at various statistics from various researchers and government publications they offer a
telltale signs of why entrepreneurship should be developed. For instance in Kenya the MSEs
create employment at low levels of investment per job, lead to increased participation of
indigenous people in the economy, use mainly local resources, promotethe creation and use of
local technologies, and provide skills training at a low cost to society (ILO, 1989). Estimates are
that there were about 900,000 small and micro enterprises establishments employing 2 million
Kenyans and generating about 14 per cent of the countrys GDP (Dolman, 1994). It is also stated
that in Kenya this sector accounted for 20% of the GDP in 1999 (CBS et al, 1999) and 64% of
the urban employment by 2002 (Karekezi and Majoro, 2002). According to the Economic
Survey (2006), the sector contributed over 50 percent of new jobs created in the year 2005. In
addition to its importance in creating jobs, the small enterprise sector contributes 33% of the
value-added in manufacturing and the retail trade in Kenya (Onyango and Tomecko, 1995).

According to Timmons and Spinelli (2004) entrepreneurship is a way of thinking, reasoning and
acting that is opportunity obsessed, holistic in approach and leadership balanced. This definition
is in line with what education is all about. This leads to entrepreneurship finding a ready
platform in education that can be used to transform the masses.

1.2 Entrepreneurship Education

Entrepreneurship education seeks to provide students with the knowledge, skills and motivation
to encourage entrepreneurial success in a variety of settings.Variations of entrepreneurship
education are offered at all levels of schooling from primary or secondary schools through
graduate university programs.

According to the European Agenda for Entrepreneurship

Communication (2004) 70, entrepreneurship education is vital so as to meet the economic and
various sectorial goals of the union. The report further reiterates that education should therefore
develop awareness of entrepreneurship from an early age. Introducing young people to
entrepreneurship develops their initiative and helps them to be more creative and self-confident
in whatever they undertake and to act in a socially responsible way.
For this reason the European Commission has devoted special attention to entrepreneurship
training from primary school through to university, with a view to encouraging Europe's young
people to become the entrepreneurs of the future.However, the benefits of entrepreneurship
education are not limited to more start-ups. Entrepreneurship is a skill that is also useful in both
personal and social aspects of everyday life.

According to (Katz, 2007) entrepreneurship education may take the form of an academic
program, entrepreneurship training, and individual or peer coaching. Ronstadt (1987) described in
detail the need for practical and experiential learning as well as classroom based education in the
development of future entrepreneurs. Fifteen years later Solomon and co-workers (2002) noted that
in contrast to traditional corporate business education entrepreneurial education must include skillbuilding courses in negotiation, leadership, new product development, creative thinking, and
exposure to technological innovation. Solomon et al also drew attention to pedagogical trends
employing numerous experiential learning devices, interdisciplinary delivery, and the growing
interest in entrepreneurship education outside the domain of business schools, for example in arts,
engineering and science. Pittaway and Cope (2007) noted that educators advocate a range of
pedagogical approaches including: action learning and the development of actual ventures, new
venture simulations, technology-based simulations, skills-based courses, video role plays,
experiential learning and mentoring

The Government of the Republic of Kenya (2005) recognizes the strategic importance of
improving the overall education level of Kenyans within the context of poverty reduction and

economic growth. According to the Government of the Republic of Kenya (2011) science,
technology and innovation sector seeks to achieve key objectives of enhanced access, equity
relevance and quality of outcomes in higher education, science, technology and innovation.
One approach to enhancing entrepreneurial activity and enterprise growth in Kenya is to create
an enterprise culture among the youth (Nelson &Mburugu,1991). This is important because by
focusing on youth while they are still in school, this approach may provide a long term solution
to the problem of job creation in Kenya. To achieve a wide spread enterprise culture in the long
run; entrepreneurship education, training, research and development programme in Kenya must
integrate self employment and entrepreneurship into the curriculum at all levels of learning

1.3 Relevance of Entrepreneurship Education in Kenya

Kenya being among the developing nations which is faced with many challenges, proper design
of entrepreneurship education would help address the following:
a) Unemployment
Unemployment, particularly in Kenya is a critical problem. Self- employment in small
enterprises has been identified solution (Nelson, 1986; Republic of Kenya, 1992).
Entrepreneurship education can play major role in changing attitudes of young people and
providing them with skills that will enable them to start and managing small enterprises in their
lives.
b) Rural- urban balance
Potential entrepreneurs who are able to establish small enterprises in small towns and villages in
rural areas must be developed in adequate numbers .By increasing the number of entrepreneurs
in a region , a more even distribution of income between rural and urban
Areas can be achieved by improving the productive capacity of people living in rural areas
(Gibb, 1988). Since technical training institutes are located throughout Kenya, entrepreneurship
education will help ensure an adequate supply of entrepreneurs in both urban and rural areas.
c) Industrialization
Accelerating industrialization, particularly through small scale enterprises, requires an increased
supply of individuals with entrepreneurial capabilities. As Kenya moves from over-dependence
on agrarian economy to a more diversified industrial society, the supply of entrepreneurs

involved in manufacturing and technology related business must be increased. Technical

training institutes are capable of preparing potential entrepreneurs by adding entrepreneurship
education to their curriculum. The use human material for industrialization demands its
education in science and training in skills (UNESCO, 1996).
d) Capital formation.
Capital is a scarce resource for economic development that needs to be used wisely. Care should
be taken to ensure that individuals who receive loans possess the technical and entrepreneurial
skills needed to succeed. The emergence of limited numbers of enterprises, high mortality rate of
start-ups, and the slow growth of those that survive clearly indicates that increased efforts are
need to prepare more competent entrepreneurs.
e) Labour utilization.
Human resources are very important for development .By orienting young people towards selfemployment; human resource may be used more productively.

The objectives of

entrepreneurship education are to:

i.

Upgrading the social and economical status of self-employment as a career

alternative.

ii.

Stimulate entrepreneurial attributes in young vocational trainees.

iii.

Facilitate the development of entrepreneurial ideas.

iv.

Promoting the overall development of an enterprise culture

2.0 Development of Entrepreneurship Education in Kenya and its Role

The first formal entrepreneurship education programme was developed in Kenya in the early
1990s (Bwisa, 2011). Since then entrepreneurship education, has been a fast growing area in the
country. Its growth is particularly speedy at the tertiary level of education. One of the key factors
explaining this phenomenon is the fact that wage employment, particularly in the public sector is
no longer a guarantee. There is a belief that entrepreneurship education can assist learners
develop and pursue entrepreneurial careers which may help them become successful self
employed citizens. Entrepreneurship education may also be called citizenship education because
it provides learners with the skills to take action and make changes which will improve the
environment within their community. In the early 1990s we saw the involvement of
internationalorganizations

in

entrepreneurship

education.

Organizationslike

German

governments technical cooperation agency, GTZ, which created Competency-based Economies

Formation of Enterprise (CEFE) in the early 1990s and the International Labor Organization
(ILO) created Know about Business (KAB) in 1996 for Kenyas technical and vocational training
institutions.
The rest of this paper focuses on reviewing the role and presence of entrepreneurship education
at various levels of education.

2.1 Entrepreneurship education at Primary school level

Since 1985, Kenya has followed the 8-4-4 system of education (8 years of primary education, 4
years secondary and 4 years university education for a basic degree).Early child-hood education
features in this system of education. Under the 8-4-4 system, the objectives of primary schooling
include providing learning opportunities which enables pupils to acquire basic knowledge and
skills for the world of work in the context of economic and human resource needs of the nation.
Although there has been considerable investment and participation in the 8-4-4 system of
education, it has featured prominently in the national political and academic discourse. The
debate has centered on its relevance, efficiency, and cost to both the parents and the government.
In the last decade, the increased public demand for education and training has stretched the
Government budget to the sector. The Government has therefore intensified partnerships and
collaboration with other partners, including parents and communities, individual investors, civil
society and donors in the financing of education and training.
This debate has led to the restructuring of primary school education wherebythere has been a
reduction on the number of subjects taught in the primary grades which now include Math,
English, Kiswahili, Science, Social Studies and Christian Religious Studies. Depending on the
location of the school, students may study Islam. Presently the Kenyan Primary Education
curriculum does not include art and music. This was because art and music had been perceived
costly and unimportant as a subject material. This has limited degree to which children are
allowed to express themselves creatively through art and music in turn depending largely on the
school and classroom teachers. Art and Music are skills that can be used to develop
entrepreneurship in youngsters, thus it has denied the children a good training ground for
entrepreneurship skills.

Despite the above named challenges there are success stories that have been noted down as
indicated in a paper titled Reforming Education and Training in Kenya 2012 by the Ministry of
Education states that the number of public and private primary schools increased from 6,058 in
1963 to 27,489 in 2010, while enrolment in primary education has grown from 892,000 pupils in
1963 to about 9.4 million pupils in 2010.
At this early stage of education where culture and attitude formation takes place there is need to
insist or craft training activities that may lead to formation of entrepreneurial culture and attitude.
This is wholly supported by Van der Kuip et al (2003) who states that childrens personality are
flexible in early age and thus initial education can play a significant role in the development of
personality entrepreneurial traits.
2.2 Entrepreneurial Education in Secondary School Level
The government determination to absorb all primary school graduates has seen an increase in the
number of secondary schools from 151 in 1963 to 7308 in2011, while enrolment in secondary
education has grown from around 30,000 students in 1963 to 1.8 million students in 2011. The
increase has been accelerated by the introduction of Free Primary Education (FPE) and Free Day
Secondary Education (FDSE) programmes in 2003 and 2008 respectively. This is according to a
reporttitled Reforming Education and Training in Kenya 2012 by the Ministry of Education.

The technical skills are imparted through the various subjects that are included in the education
curriculum of this level. Subjects like metal work, woodwork, music, agriculture and business
studies are offered at this level. They are supposed to equip the students with the right skills that
they can be utilized to start small businesses the moment they graduate. This may be used to
inspire technical oriented entrepreneurs rather than opportunity oriented entrepreneurs. The
Ministry of Education organizes a science oriented competition known as Science Congress held
annually where young inventors and creators in secondary schools are given an opportunity to
show case their innovations. The major drawback is continued lack of the entrepreneurial side of
converting these ideas into sustainable businesses.

2.3Entrepreneurial Education in Tertiary level and Universities

According to Nelson & Johnson (1997), one of the first efforts to move in the new direction to
entrepreneurial development in Kenya involved introducing entrepreneurship education into all
technical training institutions in the country. In 1990, the Ministry of Research, Technical
Training and Technology (MRTT&T) initiated a four-year project to implement a new policy
requiring all vocational and technical students to complete a course in entrepreneurship
education. Prior to this an idea had mooted by the Presidential Working Party on Education and
Manpower Training for the Next Decade and beyond (1988), which recommended that
entrepreneurship training be taught in all technical training institutions. With its history firmly
entrenched in the technical and occupational aspects of work, technical education was and still is
an ideal vehicle through which to create an "enterprise culture.

According to Reforming Education and Training in Kenya 2012 by the Ministry of Education the
TVET (Technical Vocational Education Training) sector in Kenya currently includes two (2)
polytechnic university colleges, two (2) national polytechnics, one (1) technical teachers training
college, twenty-six (26) technical training institutes (TTIs) and seventeen (17) institutes of
technology (ITs) under the Ministry of Higher Education Science and Technology (MoHEST).
In addition, the Ministry of Labour and Human Resources Development (MoLHRD) manages
three (3) industrial training centers, one (1) vocational training centre, and the Kenya Textile
Training Institute. There are 697 Youth Polytechnics (YPs) Currently under the Ministry of
Youth Affairs and Sports (MoYAS). There are also 87 other institutions spread in 15 other
Ministries and about 1,000 vocational training institutions under private, commercial, civil
society and faith organizations including some company-based training.
The development of department of entrepreneurship education was initiated in technical training
institutions in Kenya. They were encouraged to develop a Small Business Centre (SBC) .The
role of small business centre is to facilitate the development of small and jua kali enterprises, and
promote entrepreneurial culture within the institution and the local community (Republic of
Kenya, 1993)

According to Mwangi (2011) Technical and Vocational Education Training in Kenya is targeted
to produce entrepreneurs who are able to create own jobs rather than seeking employment in any
organization. That is why entrepreneurship training is incorporated in TVET college curriculum.
Entrepreneurship education is designed in order to support graduates, existing and potential
entrepreneurs to create and run their own business rather than expecting employment from
government, private or NGOs. So as to develop entrepreneurial culture to all groups of the
society, entrepreneurship education is given in different countries including Kenya in formal,
informal and non-formal way through TVET colleges/institutes.

Mwangi further claims that graduates from technical and vocational education are equipped with
entrepreneurship skills through Entrepreneurship Education and Business Planning courses they
are taught. The technical education provides skills that can be honed on the job with an
apprenticeship and or wage employment before setting out to start a new business. Skills
development encompasses a broad range of core skills (entrepreneurial, communication,
financial, management and leadership) so that individuals are equipped for productive activities
and employment opportunities (wage employment, self-employment and income generation
activities). Furnishing management skills is required to improve productivity in the informal
sector.

According to Bwisa (2012) entrepreneurship education in sub-Saharan Africa at Masters and

PhD levels is said to have been first introduced in Kenya in the 1990s. In 1990 the Government
of Kenya, in collaboration with International Labour Organization (ILO), United Nations
Development Program (UNDP) and University of Illinois of the USA started the first, known to
this author, Masters and PhD in Entrepreneurship Degrees on the sub-continent. This was a two
year University of Illinois project housed at a technical college in Kenya.

University Institutions known for good practices in Kenya include the Strathmore Enterprise
Development Centre (SEDC), the University of Nairobi School of Business, the Centre for
Executive and Entrepreneurial Development (CEED) at the United States International
University (USIU), the Chandaria Business Innovation and Incubation Centre (CBIIC) at
Kenyatta University, the institute of Human Resource Development at JKUAT, the Regional

Centre for Enterprise develop pment at Inorero University, the Centre for Entrepreneurship and
Leadership Academy (CE&L) at the KCA University.Universities are bound to contribute
significantly to the establishment of more systemic entrepreneurship in the region through
research and outreach, even as they transform their own approaches to business education.

According to Kiajage& Wheeler (2013) the university level in Kenya counts 52 higher education
institutes of which eight host a dedicated centre for entrepreneurship education. These institutes
have embraced the IEE (Integrated Entrepreneurship Education) which covers the teaching of
knowledge and skills that enable individual students to plan, start and run their own businesses in
the formal or informal sector. It forms part of the national education system with some elements
in secondary general education integrated in other subjects, such as Business Studies and
Commerce. IEE has been a compulsory and examinable subject at all levels of schoolbasedvocational training where the emphasis has been much stronger since the early 1990s
according to ILO, 2004.

3.0 Challenges Facing Entrepreneurship Education in Kenya

The Kenyan school curriculum today emphasizes on education that offers knowledge and skills
as outlined in the Mackay report of 1985. However, the practice in class is one of examination
oriented whereby students prepared to pass national examinations at the expense of training in
skills.
This situation is contributed by conditions like high enrollment of students, lack of adequate
infrastructure to offer learners a chance to put into practice what they have learnt in class, the
constraining teaching and learning environment that does not give room for application of
knowledge, clouded curriculum, lack of proper teacher training program that exposes trainees to
technology that is the norm of teaching in schools today.

3.1. Methods of effective delivery of entrepreneurship education

To ensure that entrepreneur education is taught effectively experienced based teaching
methodology is crucial. Traditional educational methods like lectures do not correlate well with
the development of entrepreneurial thinking. There is need for more interactive learning

approaches, where the teacher is more of a moderator than a lecturer. Getting real entrepreneurs
involved in teaching would improve the practical experience needed to improve the course.
Entrepreneurs learn by doing on continuous basis in a more integrated way, solving problems
and copying from others, making mistakes and learning from experience (Honig,B. &
Davidsson, P .2000). The instructor needs to ensure that instructional practice that incorporate
life skills, social and affective skills, and skills in self-advocacy throughout the curriculum.
Choose teaching and learning methods that matches the learning needs and styles of the student
and incorporate direct instruction of how-to-learn skills and thinking skills throughout the
curriculum. It is important to use methods that promote active learning, including hands-on
learning, real-world and experimental learning, community-based learning, and learning
involving student choice. The Learning of skills should be through the use of learning materials,
equipment, and media tailored to the unique learning needs of students. In some cases, design
and implement specific opportunities for students to apply and transfer learning to a variety of
situations, both familiar and unique so as to perfect their skills.

Dhliwayo,S.(2008) stressed that entrepreneurship curricula of the top schools in business

education such as Bobson college, Stanford school of the business, MIT Sloan school of
management and National University of Singapore encompass a strong learning by-doing
element through outside the classroom. Activities such as internships with start ups, creating
and running small ventures on campus and working on small consulting jobs were to be
emphasized.

4.0 Conclusion
Kenyas vision is to create a globally competitive and adaptable human resource base to meet the
requirements of a rapidly industrializing economy by 2030, and this includes the establishment
of life-long training and education, and enhanced collaboration between industry and educational
institutions. A human resource database is to be established to facilitate better planning of human
resource requirements in the country. But not all economic metrics are moving in the right
direction, particularly among the youth where societal and family pressure promotes aspiration to
white-collar jobs. This is partly because the strategy for education and training currently neglects
the potential contribution of entrepreneurship education to economic growth.

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