Abstract:
In order to grow entrepreneurship among specific groups and sectors, a Government can provide an Entrepreneurship Fund incentive. The success or failure of such a fund is critical to the attainment of the envisioned goals by the Government. In case of failure the reputation and financial outcomes of both the entrepreneur and the Government will impaired. This study has used a census to collect data using a survey questionnaire generated in Survey Monkey and emailed to 65 entrepreneurs funded by the ICT Authority of Kenya to run digital villages (Pasha Centers) between year 2011 and 2016. The completed questionnaires were analyzed using descriptive statistics on SPSS for the effect of entrepreneur’s characteristics, loan product characteristics, the business characteristics, and business development services provided to the beneficiary entrepreneurs; against the financed business performance. The research also reviewed the intervening factor of the external environment where these Pasha Centers operated. The research objectives were derived from the selection factors used by the ICT Authority in identifying the qualified entrepreneurs; as well as the service level agreement (SLA) adopted for supporting the Pasha centers. Data was collected through email questionnaires consisting of both close ended and open ended questions. The findings of this study are supposed to inform the Government of Kenya on what factors resulted in the success or failure of the Pasha Centers. The research found that all the independent variables, except business characteristics were significant critical success factors for funded business performance (p<0.05). Their coefficients were as follows: Entrepreneur’s characteristics β1=0.286, Loan Characteristics β2=0.517, and Business Development Services β3=0.790. This new knowledge will help guide the Government on what critical success factors to consider in selection and implementation of public financed entrepreneurship. Therefore policy makers will be able to develop improved support framework for implementing successful Government interventions for catalyzing and spurring entrepreneurial development leveraged on Public Financing. It will also inform the affected entrepreneurs on the factors that resulted in the outcomes of their Pasha centers. Further, it will help in theory development for researchers to develop an improved framework for evaluating designs of public financed entrepreneurship.
