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The Entrepreneurship Ecosystem and its supports in Nairobi - in Nairobi - A Qualitative study of their relationships

Holm, Knut and Ankarkrona, Gustav (2016) MIO920
Production Management
Abstract
Background
Kenya is facing social and economic problems related to the high unemployment rate the country has suffered since independence. The Kenyan government are placing a lot, if not all, eggs in one basket and betting on entrepreneurship to solve these problem. For entrepreneurship to thrive there needs to be an ecosystem facilitating it and inherent in this ecosystem are support organisations.
Purpose
The purpose of this thesis is to explore the domains of the entrepreneurship ecosystem in Nairobi and to find out how it effects or how it is being effected by the startup support organisations in the area. By highlighting these interconnections, actors may take appropriate steps in further facilitating the establishment and growth... (More)
Background
Kenya is facing social and economic problems related to the high unemployment rate the country has suffered since independence. The Kenyan government are placing a lot, if not all, eggs in one basket and betting on entrepreneurship to solve these problem. For entrepreneurship to thrive there needs to be an ecosystem facilitating it and inherent in this ecosystem are support organisations.
Purpose
The purpose of this thesis is to explore the domains of the entrepreneurship ecosystem in Nairobi and to find out how it effects or how it is being effected by the startup support organisations in the area. By highlighting these interconnections, actors may take appropriate steps in further facilitating the establishment and growth of ventures on the scene in Nairobi.
Delimitations
First and foremost, the Entrepreneurship Ecosystem in this thesis is limited geographically to Nairobi and the barriers of the ecosystem are discussed in the theoretical framework.
Interviewees are limited to management or higher ranking employees of the startup support organisations, their closest associates and startups.
Method
This thesis is based on qualitative interviews with people active on the startup scene. The results of the interviews will be complemented by a literature review and analysed using a theoretical framework.
Conclusions
The ICT-sector enjoys a far more developed ecosystem than the rest of the sectors. This points to the fact that the ecosystem started to gain foothold in ICT and has expanded to include other sectors which now are evolving. But some generalities were found that applies to all sectors, that there are three more critical domains. Those are;
Finance
Human capital
Policy
These connections were found between the ecosystem and the support organisations.
The EE’s effect on the SSOs:
Policy – Existing governmental policies limits the SSOs opportunities to markets in Kenya and to the world outside.
Finance – When the SSO loose financing they tend to move their value proposition further away from the young startups which need the SSOs services the most.
Culture – The culture creates a demand for SSOs and enables their business.
Human Capital – The existing knowledge is poor which gives the SSOs a hole to fill and is definitely altering
The SSO’s effect on the EE:
Policy – The SSO has today little or no ability to affect governmental policy making.
Finance – The SSOs has as an intermediary opportunity to reduce the gap between startups and investors but has yet not succeeded.
Culture – The SSOs empower entrepreneurs and are making entrepreneurship socially accepted towards markets and the society at large.

Human Capital – SSOs can further educate entrepreneurs and are making the EE more customer centric.
Markets – Through networking SSOs can facilitate early adopters and let entrepreneurs reach global market through international companies established in Nairobi. (Less)
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author
Holm, Knut and Ankarkrona, Gustav
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Entrepreneurship Ecosystem, Incubator, Accelerator, Coworking Spaces, Nairobi, Kenya
other publication id
16/5556
language
English
id
8892379
date added to LUP
2016-09-23 09:57:23
date last changed
2016-09-23 09:57:23
@misc{8892379,
  abstract     = {Background
Kenya is facing social and economic problems related to the high unemployment rate the country has suffered since independence. The Kenyan government are placing a lot, if not all, eggs in one basket and betting on entrepreneurship to solve these problem. For entrepreneurship to thrive there needs to be an ecosystem facilitating it and inherent in this ecosystem are support organisations.
Purpose
The purpose of this thesis is to explore the domains of the entrepreneurship ecosystem in Nairobi and to find out how it effects or how it is being effected by the startup support organisations in the area. By highlighting these interconnections, actors may take appropriate steps in further facilitating the establishment and growth of ventures on the scene in Nairobi.
Delimitations
First and foremost, the Entrepreneurship Ecosystem in this thesis is limited geographically to Nairobi and the barriers of the ecosystem are discussed in the theoretical framework.
Interviewees are limited to management or higher ranking employees of the startup support organisations, their closest associates and startups.
Method
This thesis is based on qualitative interviews with people active on the startup scene. The results of the interviews will be complemented by a literature review and analysed using a theoretical framework.
Conclusions
The ICT-sector enjoys a far more developed ecosystem than the rest of the sectors. This points to the fact that the ecosystem started to gain foothold in ICT and has expanded to include other sectors which now are evolving. But some generalities were found that applies to all sectors, that there are three more critical domains. Those are;
Finance
Human capital
Policy
These connections were found between the ecosystem and the support organisations.
The EE’s effect on the SSOs:
Policy – Existing governmental policies limits the SSOs opportunities to markets in Kenya and to the world outside.
Finance – When the SSO loose financing they tend to move their value proposition further away from the young startups which need the SSOs services the most.
Culture – The culture creates a demand for SSOs and enables their business.
Human Capital – The existing knowledge is poor which gives the SSOs a hole to fill and is definitely altering
The SSO’s effect on the EE:
Policy – The SSO has today little or no ability to affect governmental policy making.
Finance – The SSOs has as an intermediary opportunity to reduce the gap between startups and investors but has yet not succeeded.
Culture – The SSOs empower entrepreneurs and are making entrepreneurship socially accepted towards markets and the society at large.

Human Capital – SSOs can further educate entrepreneurs and are making the EE more customer centric.
Markets – Through networking SSOs can facilitate early adopters and let entrepreneurs reach global market through international companies established in Nairobi.},
  author       = {Holm, Knut and Ankarkrona, Gustav},
  keyword      = {Entrepreneurship Ecosystem,Incubator,Accelerator,Coworking Spaces,Nairobi,Kenya},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Entrepreneurship Ecosystem and its supports in Nairobi - in Nairobi - A Qualitative study of their relationships},
  year         = {2016},
}