Bias for formal jobs hampers growth of entrepreneurship

However the business ideas could die a young death as regrouping the students to have them mature their businesses is difficult since most pursue different interests after graduating from high school or college.

Mr John Wali, the executive director of JA, said the organization has started an alumni programme to help connect high school graduates who would like to start joint ventures.

Mr Lay, said the initiative is one of several aimed at promoting a culture of entrepreneurship.

Basic principles

“To succeed in business, you’ve got to understand the basic principles. If you don’t, you will not make it however passionate you are about business,” he said, adding that the enterprises stand a better chance of accessing credit after proving their own viability.

Analysts have decried the problem of the current education system that propels learners to seek employment as opposed to setting up their own businesses.

In addition, lack of a systematic entrepreneurial training and the country’s low national savings rate — at about 15 per cent of the GDP against the government’s target of at least 25 per cent — have been cited as factors slowing down economic growth.

Entrepreneurial training is currently offered by different organisations, including banks focusing on SME banking, the government through public-private initiatives, and private firms like Smart Youth Investment Ltd that trains students on how to trade using an online simulation of trading at the stock market.

Apparently, Kenyans would rather have the pursuit of education rewarded through corporate jobs rather than self employment.

“After spending about Sh1 million on their child’s undergraduate degree, parents see their efforts as wasteful if their children don’t land employment,” said Catherine Muthoni, a marketing consultant and student at Africa Nazarene University.

The university has a degree course in entrepreneurship which has been flagging as fewer students show interest.

“Out of a total student population of about 4,000, less than ten students have been specializing in the entrepreneurship option under the Bachelor of Commerce degree course. The university is considering scrapping the option,” Muthoni said.