DIGITAL AND WIRELESS COMMUNICATION TECHNOLOGY’S CONTRIBUTION TO ENTREPRENEURSHIP DEVELOPMENT: CASE...

DIGITAL AND WIRELESS COMMUNICATION TECHNOLOGY’S

CONTRIBUTION TO ENTREPRENEURSHIP DEVELOPMENT:

CASE STUDY OF KISUMU WEST DISTRICT

BY

MESHACK OTUNGE OKONG’O

REGISTRATION NUMBER: CAN/2010/PGD/KEN/0303

A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT OF THE DEGREE OF MASTERS OF

SCIENCE IN DIGITAL AND WIRELESS COMMUNICATION

AT EUROPEAN BUSINESS SCHOOL

MAY 2012

DECLARATION BY CANDIDATEI Meshack Otunge Okong’o, declare that this is my

original work and that it has never been presented to

any institution for award of any diploma, conferment of

any degree or for any other purpose.

Signed: …………………………………

Date……………….

DECLARATION BY SUPERVISORS

This project has been submitted with my approval as the

appointed Supervisor.

Signature……………………….

Date……………………

Name: …………………………………… … Date……………………

Signed: ………………………………………

Head of missions: ……………………………..

Date………………….

ii

COPY RIGHTCopyright © 2012 Meshack Otunge Okongo

All rights reserved. No part of this publication shall

be produced or transmitted in any form or by any means

without the prior permission from the author or the

institution to which the author presented it to for

conferment of a Master of Science degree.

iii

DEDICATIONTo my father Jeconiah and mother Esther Nyawere!

iv

ACKNOWLEDGEMENTI express my sincere appreciation to all those teachers

who took part in shaping my social and academic life.

v

To my wife Benerdette Caroline Anyango Olwenyo I show

my gratitude to you for always being with me during the

trying moments while in pursuit of knowledge. You

edited my work thanks.

To Mr. John Ochieng’ Gwara I am grateful for being

supportive to let me carry out my research work and

industrial attachment for 4 months without any problem.

Special thanks to employees of Kenya Broadcasting

Corporation (K.B.C) for giving me easy time during my

industrial studies at your firm in Kisumu which has

contributed greatly in my scholarly work.

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ABSTRACTThe purpose of the study was to investigate the causes

of low penetration levels of digital and wireless

communication in the study area, the relationship

between investment in the technology and

entrepreneurship development and establishing suitable

means of using the technology to support

entrepreneurship development in the area.

This research was qualitative in nature. Here, a case

study was chosen as an effective method to answer the

relevant research questions. Population targeted was

150 persons. Only entrepreneurs and customers using or

consuming or trading in gadgets of this technology were

considered or targeted for the purpose of the study.

Area sampling technique was used for in this study. The

area was divided into geographical regions as; Maseno

division and Kombewa division of Kisumu west district

of Kisumu County. Respondents were later picked by use

of judgmental sampling technique within the

geographical regions herein described. A sample of 90

respondents was then extracted from the target

population using the formula developed by Naasiuma

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(2000). The data for this study was collected through

interviews with entrepreneurs, their customers, and

heads of post secondary institutions of learning.

Questionnaire was used to collect information over a

very short period of time. The researcher used

observation while collecting data so as to be able to

get information needed in their natural state. Data was

qualitatively analyzed especially by correlation method

as appropriate.

Bar graphs, pie charts, tables and scatter diagrams

were used to present data. Computers were used to

process and present data. Excel and SPSS were used for

analysis.

From the study, the findings show that penetration of

the technology in the area is low, increased investment

in the technology caused an increase in the development

of entrepreneurship and that better application of the

technology in various area increased development of

entrepreneurship.

TABLE OF CONTENT

ContentsDECLARATION BY CANDIDATE iiDECLARATION BY SUPERVISORS..............................ii

COPY RIGHT iii

viii

DEDICATION ivACKNOWLEDGEMENT vABSTRACT viTABLE OF CONTENT viiLIST OF TABLES viiiLIST OF FIGURES ixLIST OF ABBREVIATION AND ACRONYMS xCHAPTER ONE 11.0 INTRODUCTION.........................................11.1 Background of the study..............................1

1.2 Statement of the problems............................31.3 Purpose of the Study.................................4

1.4 Research Questions...................................41.5 Justification of the Study...........................5

1.5.1 The policy makers (The government).................51.5.2 Entrepreneurs......................................5

1.5.3 Software Developers................................51.6 Definition of terms..................................5

Digital communication....................................5Entrepreneurship.........................................6

Information Communication Technology.....................6Wireless Communication...................................6

1.7 Scope of the Study...................................61.8 Chapter summary......................................6

CHAPTER TWO 82.0 LITERATURE REVIEW....................................82.1 Introduction.........................................8

2.2 What is responsible for low penetration levels of digital and wireless communication technology in Kisumu

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west district of Kisumu County?..........................82.2.1 Lack of infrastructure.............................8

2.2.2 Inadequate government funding and limited credit facilities...............................................9

2.2.3 Security Issues and Activities of Internet Service Providers...............................................10

2.2.4 Poor leadership and deception by those who fear change..................................................10

2.3 What is the relationship between investment in digitaland wireless communication and entrepreneurship development in Kisumu?..................................122.4 How can penetration and use of digital and wireless communication technology be promoted to foster entrepreneurship development in Kisumu County?..........16

2.4.1 Promoting penetration of digital and wireless communication technology................................16

2.4.2 Best means of using digital and wireless communication technology to foster entrepreneurship development in Kisumu County...........172.5 chapter summary.....................................18

CHAPTER THREE 193.0 METHODOLOGY.........................................193.1 Introduction........................................19

3.2 Research design.....................................193.2.1 Target population.................................20

3.2.2 Sampling technique and sample size................203.2.2.1 Sampling technique..............................20

3.2.2.2 Sample size.....................................213.3 Data collection methods.............................22

3.3.1 Interviews........................................223.3.2 Questionnaires....................................22

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3.3.3 Observation.......................................233.4 Data collection procedures..........................23

3.5 Data analysis and presentation......................233.6 Chapter summary.....................................24

CHAPTER FOUR 254.0 RESEARCH FINDINGS...................................254.1 Introduction........................................25

4.2 What is responsible for low penetration levels of the technology in Kisumu County?............................26

4.2.1 Is electricity in adequate supply enough to encourage the use of digital and wireless communication inthe county?.............................................264.2.2 Is your business area supplied with good broadcast and telecommunication facilities so as to support the use of digital and wireless communication?..................27

4.2.3 Are there good transport networks in your place of operation to spur faster penetration of the technology in the County?.............................................294.2.4 Has the government been giving enough financial assistance to support the high penetration rates and use of digital and wireless communication in the county?....31

4.2.5 Have other stakeholders been giving adequate credit facilities to encourage the use of digital and wireless communication technology?...............................324.2.6: Do you accept that security issues are among the many other things which are hampering the, would be rapid penetration and use of the technology?..................34

4.2.7 Do you agree that civil unrests have caused the slowpenetration rate of the technology in the county?.......36

4.2.8 Is it true to say that many people fear change and are resisting the use of digital and wireless communication hence low penetration of this technology?.38

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4.2.9 Is it true to say that political leaders are very slow in formulating policies to regulate the use of the technology hence, causing fear to adopt the technology among residence of Kisumu west district in the county of Kisumu?.................................................414.2.10 Is corruption responsible for poor telecommunication network in the county and so causing slow penetration of the technology?.....................43

4.2.11 Do you believe that the technology is carcinogenic to human beings thereby causing its slow penetration?...44

4.2.12 Do you believe that once people get to use this technology the persons working in such fields shall be rendered jobless and some trade unions are advocating against the use of digital and wireless communication technology?.............................................464.2.13 Do you accept that high taxation by the government is a threat to penetration and subsequent use of this technology?.............................................48

4.2.14 Do you accept that some persons feel that the technology is highly responsible for moral decadence in our society; that its use should be discouraged hence causing its low penetration in the county?..............49

4.2.15 Is the high cost of hardware and software a hindrance to penetration of the technology in the county?........................................................514.3. What is the relationship between investment in digital and wireless communication technology and entrepreneurship development in Kisumu west district?...53

4.3.1. Give the number of employees engaged as appropriateagainst an estimate of your investment in the technology53

4.3.2. Kindly give estimate value of educational material obtained through this technology in relation to the value of investment in the technology at the time.............54

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4.3.3. Estimate the value of health services extended to your customers while using this technology corresponding to approximate value of your in the technology (Health workers)................................................56

4.3.4. Estimate the volume of your sales through the technology corresponding to the appropriate values of yourinvestment in digital and wireless communication technology..............................................57

4.3.5. Estimate the time saved in terms of hours corresponding to your investment in the technology i.e. ata certain value of investment, how much in terms of time were you able to save in the course of your business dealings in one month?..................................594.3.6. Make an estimate value of your yields from your farm against your investment in the technology. (For thoseengaged in M-farming)...................................60

4.3.7. Give an estimate number of customers reached using the technology against investment in the technology.....62

4.3.8. Give an estimate value of goods you were able to detect their expiry date using the technology and the value of your investment in technology at the time (Healthworkers and sellers of edible commodities)..............63

4.3.9. State how much was saved in terms of travelling cost when the cost of investment in technology was as indicated...............................................654.3.10. State how many friends you created when the cost of your investment was as follows.......................664.3.11. Give an estimate value of savings on consultancy charges on poverty alleviation projects that you have managed to get while using this technology and corresponding investment at the time. (Community based organizations)..........................................68

4.3.12. Give an estimate value of cash that the technologyhas ever helped you to save from misappropriation (if any) and

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the corresponding value of investment in the technology atthe said time...........................................69

4.3.13. Give an estimate number of people you have ever talked about leadership of an organization through the technology and the corresponding value of your investment in the technology at the time...........................71

4.3.14. Give an estimate number of decisions made after applying the technology to search for suitable decisions against your investment in the said technology..........724.3.15. What was your cost of paying your bills compared to your investment in the technology? (The cost here excludes the bill itself)...............................74

4.4 How can penetration and use of digital and wireless communication technology be enhanced to promote entrepreneurship development in Kisumu west district of Kisumu County?..........................................76

4.4.1. Do you believe that causing software to be versatile to do arrange of activities e.g. sending money, withdraw, apply and receive loans and other transactions would help in developing entrepreneurship in the district?........................................................764.4.2. Do you accept that in cooperating the technology toaddress health issues shall foster entrepreneurship growthin the district?........................................77

4.4.3: Can using technology to disseminate knowledge enhance development of entrepreneurship in the district?78

4.4.4. Do you believe that using the technology in carrying out market research can promote growth in entrepreneurship in the district?.......................804.4.5. Can the technology be used to enhance security consequently, fostering development in entrepreneurship?814.4.6. Is it true to say that using technology to monitor leadership personalities enhances entrepreneurship growth?........................................................82

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4.4.7. Is Using technology to perform operations that would be dangerous to human beings be vital in promoting production and entrepreneurship development?............844.4.8.Can the technology can be used to reinforce social fabrics of the society through social sites and hence promote entrepreneurship as entrepreneurs are members of the society and cannot live in isolation?...............854.4.9. Is it true that using the technology can be used tostrengthen the bond between customers and those who sell to them commodities?....................................86

4.4.10. Is it in order to say that technology can be used to bring close services to the people so as to encourage business potential and eliminate unnecessary delays in business transactions?..................................88

4.4.11. Is it true that using technology to collect revenue from customers will eliminate corruption and enhance service delivery to its citizen entrepreneurs inclusive?..............................................89

4.4.12. Is using technology able to create jobs hence helping potential entrepreneurs to accumulate capital required for their intended businesses?.................904.4.13. Do you believe that technology would be used to monitor our roads and ease congestion in the roads hence facilitating movement of goods and services?............92

4.4.14. Can technology be used to promote creativity and innovation to help in solving various problems?.........93

4.4.15. Do you accept the technology would be used to facilitate quicker decision making, healthy for entrepreneurs?..........................................944.4.16 Do you agree that campaigns can be launched and used to popularize and encourage penetration of the technology in the study area?...........................96

4.4.17 Do you agree that research and innovation can encourage penetration of the technology?................97

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4.4.18 Do you agree that initiating poverty alleviation projects can encourage penetration of the technology in the area?...............................................984.4.19 Do you believe that doing a way with expatriates and engaging locals in the technology can cause high penetration rates of the technology in the area?.......100

4.5 Chapter summary....................................101

CHAPTER FIVE 1025.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS.......................................................1025.1 Introduction.......................................102

5.2 Research Summary...................................1025.2.1 Purpose of the study.............................102

5.2.2 The research questions...........................1025.2.3 Research design..................................102

5.2.4 Population of the study and sampling technique...1035.2.4.1 Population of the study........................103

5.2.4.2 Sampling technique and sample size.............1035.2.4.2 .1 Sampling technique..........................103

5.2.4.2 .2 Sample size.................................1035.2.5 Data collection methods..........................104

5.2.5.1 Interviews.....................................1045.2.5.2 Questionnaires.................................104

5.2.5.3 Observation....................................1045.2.5.4 Data collection procedures.....................104

5.2.5.5 Data analysis and presentation.................1055.3 Answers to research questions......................106

5.3.1 What is responsible for low penetration levels of digital and wireless communication technology in Kisumu west district?.........................................106

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5.3.1.1 Lack of infrastructure.........................1065.3.1.2 Funding........................................106

5.3.1.3 Security.......................................1075.3.1.4 Societal issues................................107

5.3.1.5 Labour issues..................................1075.3.1.6 Health issues..................................108

5.3.2 What is the relationship between investment in digital and wireless communication technology and entrepreneurship development in Kisumu west district?..1085.3.3 How can penetration and use of the technology be enhanced to promote entrepreneurship development in Kisumuwest district?.........................................108

5.3.3.1 Promoting penetration of digital and wireless communication technology...............................108

5.3.3.2 Best means of using digital and wireless communication technology to foster entrepreneurship development............................................1095.4 Conclusions........................................110

5.5 Recommendations....................................1115.5.1 Policy makers and the government.................111

5.5.2 Entrepreneurs....................................1125.2.3. Software developers.............................112

5.6 Recommendations for further studies................113

REFERENCE 114APPENDICES 122WORK PLAN/ TIME TABLE 122THE BUDGET FOR THE STUDY 123QUESTIONNAIRE 124

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LIST OF TABLESTable 1: Sample size as extracted from the population

....................................................22

Table 2: Response rate..............................25

Table 3: Confirmation as to whether electricity is in

adequate supply in the county.......................26

Table 4: Support for availability of broadcast and

telecommunication facilities to support the penetration

levels and use of the technology....................28

Table 5: Support for good transport network to enhance

the penetration levels and use of the technology in the

study area..........................................30

Table 6: Support that financial aid by the government

is enough to enhance the penetration levels and use of

the technology in the study area....................31




Table 8: Support that security issues are a threat to

penetration rate and use of the technology in the area

....................................................35

Table 9: Acceptance levels that civil unrests cause

slow penetration rate of the technology.............37

Table 10: Acceptance levels that fear to change is a

cause to slow penetration rate of the technology. . . .39


is enough to enhance the penetration levels of the xviii

technology in the study area........................41

Table 12: Acceptance levels that corruption is

responsible for low penetration of the technology in

the district........................................43

Table 13: Acceptance levels that the technology is

carcinogenic to human beings........................45

Table 14: Technology shall eliminate human labour hence

render many persons jobless.........................47

Table 15: Acceptance that high taxation by the

government is a threat to penetration and use of the

technology..........................................49

Table 16: The technology is responsible for moral

decadence in our society............................51

Table 17: High cost of hardware and software necessary

for technology is a hindrance to the penetration of

this technology in the area.........................53

Table 18: The number of employees against Investment 54

Table 19: Relationship between investment in technology

and the value of educational material obtained......56

Table 20: Effects of the technology on value of health

services extended to patients.......................57

Table 21: Investment in the technology against volume

of sales............................................59

Table 22: Investment against time saved in a month. .60

Table 23: Relating investment in technology to returns

from farming activities.............................62

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Table 24: Relation between investment and the number of

customers contacted.................................63

Table 25: Investment against value of goods saved from

expiry by use of technology.........................65

Table 26: Investment against eliminated cost of

travelling during business activities...............67

Table 27: Investment in technology against number of

friends created or contacted monthly................68

Table 28: Investment in the technology against value of

savings in consultancy..............................70

Table 29: Relating estimated investment in the

technology to the funds saved from misappropriation due

to application of technology........................71

Table 30: Relating investment in the technology to

leadership practices................................73

Table 31: Relating investment in technology to decision

making..............................................74

Table 32: Relation between investment in the technology

and cost of paying bills............................76

Table 33: Making more versatile software............77

Table 34: Integrating the use of technology in

addressing health problems..........................78

Table 35: using digital and wireless communication

technology to disseminate knowledge.................80

Table 36: Digital and wireless communication in

carrying out market research........................81

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Table 37: Technology in enhancing security..........83

Table 38: Technology in monitoring leadership

personalities to jump-start entrepreneurship growth. 84

Table 39: Technology in performing dangerous operations

....................................................85

Table 40: Technology in reinforcing social fabrics of

the society hence promoting entrepreneurship

development.........................................87

Table 41: Technology in bonding customers and

entrepreneurs.......................................88

Table 42: Technology can be used to bring services

close to customers..................................90

Table 43: technology can be used to collect revenue;

eliminate corruption and enhance service delivery among

government institutions.............................91

Table 44: technology cap[able of being used to generate

job opportunites....................................92

Table 45: technology use in monitoring traffic......94

Table 46: Technology promotes creativity and innovation

....................................................95

Table 47: Technology facilitates decision making. . . .97

Table 48: Campaigns in support of the technology can

encourage its penetration in the study area.........98

Table 49: Research and innovative activities can

encourage penetration of the technology.............99

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Table 50: Initiating poverty alleviation projects

encourage penetration of the technology............101

Table 51: Engaging expatriates at the expense of locals

discourages penetration of the technology..........102

Table 52: Budget...................................125

LIST OF FIGURES

Figure 1:Levels of acceptance that supply of

electricity in Kisumu west district is enough to

promote the use of digital and wireless communication

technology..........................................27

Figure 2: Supply of broadcasting and telecommunication

facilities supporting the technology use and

penetration in the study area.......................29

Figure 3: Response in support of transport being

adequate to enhance the penetration and use of the

technology in Kisumu west district..................31

Figure 4: Support that financial aid by the government


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Figure 5: Degree of agreement among respondents as to

whether other stakeholders have been giving enough

funding to encourage penetration and use of the

technology in Kisumu west district..................34

Figure 6: Degree of a agreement among respondents as to

whether security issues discourage penetration and use

of the technology in the district...................36

Figure 7: Response as to whether civil unrests slow

down penetration rate of the technology in Kisumu west

district............................................38

Figure 8: Low penetration of the technology is due to

resistance to change among residents of Kisumu west

district............................................40

Figure 9: Political leaders are slow in formulating

regulations to control the use of the technology so

people are slow to adopt the technology hence, causing

its low penetration rate............................42

Figure 10: Corruption is responsible for slow

penetration of the technology in Kisumu west district

....................................................44

Figure 11: Digital and wireless communication

technology is carcinogenic to human beings..........46

Figure 12: Digital and wireless communication

technology shall eliminate human labour if put in use

....................................................48

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Figure 13: High taxation by the government slows down

penetration rate and use of the technology..........50

Figure 14: Technology promotes moral decadence among

members of the society..............................52

Figure 15: High cost of hardware and software; a

hindrance to penetration of digital and wireless

communication technology............................54

Figure 16: Relationship between investment in the

technology and the number of employees..............55

Figure 17: Relationship between technology and value of

educational material got............................56

Figure 18: Relation between technology and value of

health services extended............................58

Figure 19: Investment in technology against volume of

sales...............................................59

Figure 20: Investment in technology against time saved

in a month..........................................61

Figure 21: Relating investment in technology to returns

from farming activities.............................62

Figure 22: Relation between investment in technology

and the number of customers contacted...............64

Figure 23: Investment in technology against value of

goods saved from expiry by use of technology........66

Figure 24: Investment in technology against eliminated

cost of travelling during business transactions.....67

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Figure 25: Investment in technology against the number

of friends contacted or created using the technology 69

Figure 26: Investment in technology against value of

savings in consultancy..............................70

Figure 27: Relating investment in technology to funds

saved from misappropriation.........................72

Figure 28: Relating investment in technology to

leadership practices................................73


decision making.....................................75

Figure 30: Relation between investment in technology

and cost of paying bills............................76

Figure 31: Versatile software.......................78

Figure 32: Using the technology to solve health related

problems............................................79

Figure 33: Using the technology to foster knowledge

dissemination.......................................81

Figure 35: Using technology in market research......82

Figure 36: Digital and wireless communication in

promoting security in the regiopn...................83

Figure 37: Using technology to monitor leadership

personalities enhances entrepreneurship growth......85

Figure 38: Using technology to do activities considered

dangerous to human beings encourage entrepreneurship

practices...........................................86

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Figure 39: Technology can be used to promote moral

virtues in the society..............................88

Figure 40: Use of technology creates strong bond

between enterprenuers and consumers.................89

Figure 41: Technology can be employed to bring goods

and services close to customers.....................90

Figure 42: Technology in collecting revenue and

eliminating corruption hence encouraging better service

delivery by the government..........................92

Figure 43: Technology can be used to create job

opportunities.......................................93

Figure 44: Technology can be used to monitor traffic

conditions in our roads to enhance traffic flow.....95

Figure 45: Using technology in promoting creativity and

innovation..........................................96

Figure 46: Use of technology in fastening decision

making..............................................97

Figure 47: The technology penetration can be enhanced

through positive campaigns..........................99

Figure 48: Research and innovative practices promotes

penetration levels of the technology...............100

Figure 49: Establishing poverty alleviation projects

would foster quicker penetration of the technology in

the area...........................................102

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Figure 50: Engaging locals while minimizing the number

of expatriates in the technology sector promotes its

penetration in the study area......................103

LIST OF ABBREVIATION AND ACRONYMS

ALIN: Arid Land Information Network

ICT: Information communication technology

ISP: Internet service providers

KRA: Kenya Revenue Authority

SIM: Subscriber Identity Module

VAT: Value added tax

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CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the study

Harnessing digital and wireless communication technology to

promote entrepreneurship development has been hampered by a

number of factors such as poor funding and lack of qualified

Information Communication Technology (ICT) personnel (Kessy,

Kaemba and Gachoka, 2007).

According to Obijofor, Inayatallah and Setevenson (2005)

power unreliability, management attitude and poor ICT skills

holds back the penetration of digital and wireless

communication technology.

Rusenberg (2006) elucidated the challenge to the technology

use and attributed it to lack of software standardization.

Where standardization is lacking, it is very difficult to

have software and hardware materials being used across the

boarders. Each area having its own standards limits the use

of the same item in another region and by extension impacts

negatively on the penetration levels of digital and wireless


Odedra (1992) opines that culture is a strong factor that

indicates if technology is to be accepted or not accepted;

and is a problem that has hindered the use of digital and

1

wireless communication technology in Africa. Gardener (1994)

pointed out human resource vendor and maintenance, culture,

funding, education and training as key factors that

discourage the use of the technology in developing

countries.

A number of factors have over the years contributed to the

limited use and extent of penetration of digital and

wireless communication technology in Africa. These include

inadequate telecommunication facilities, poor level of

computer literacy even within the academic community, poor

level of computer facilities, poor levels of awareness of

internet facilities among policy makers, government

officials and the ruling class in general and minimum

involvement of academic instructions in network building.

These challenges militate against the use of digital and

wireless communication (Obijofor, et, al, 2005).

Factors standing against the effective use of digital and

wireless communication technology in developing countries

especially Nigeria were: low level of computer culture, poor

telecommunication and general lack of awareness (Omolayole,

2002)

Muga (2003) defined an entrepreneur as a person who

identifies business opportunities, marshal’s resources, and

takes action to implement and maximize on the opportunity or

take advantage of the opportunity. This individual accepts

2

financial risks and undertakes new financial ventures.

He/she has great chance of success by identifying the needs

in the market niche/ region that others have not captured

yet.

Entrepreneurship is vital in the sense that it leads to

creation of employment, reduction of poverty, equitable

distribution of resources, economic growth, and provision of

solution to socio-economic growth, political and balanced

economic growth among other benefits (Kenya ICT Board, n.

d). Digital and wireless communication technology should be

used to promote entrepreneurship development (Redfern,

2011).

Economic growth could be achieved by true entrepreneurship

development which also is related to distances we are able

to travel. Thus, the further people are, on average and able

travel, the greater the economic activity and the wealth of

the society. The increasing use of information and

communication technologies is changing the nature of this

linkage with the use of virtual mobility that renders the

distance less important, but insists that the connection

with mobility remains. If consumers spend less on transport

they would save more money which could be added to their

disposable income. Increasingly digital and wireless

communication is becoming pivotal for economic growth. By

enabling virtual mobility, the technology provides the means

3

to undertake many of the activities that have so far needed

physical transport (Lake, 2004).

1.2 Statement of the problems

Kinuthia (2009) said that ICT continues to advance in

western countries while in Africa, countries still

experience a lag in its implementation and that this

continues to widen the digital and Knowledge divides. Though

computers were introduced into Kenya in the year 1970s and

internet became available in 1993, Penetration levels of

digital and wireless communication technology have remained

low even with over 30 internet service providers (ISP) in

Kenya especially in the rural areas. This shows none

commitment on the side of ISP to provide the necessary

resources to support the use of this technology in the

country (Ford, [2007]; Internet world, [2009]).

As much as the government has been trying to promote the

adaption of digital and wireless communication technology to

drive economic development to higher levels, much has not

been achieved yet; environment is not favorable enough to

allow for the desirable penetration levels of this

technology (Nokia and World Bank, 2011). Many people still

4

find it difficult to employ this technology for fear of

falling prey to fraudsters (Nyabiange, 2011; Dafala, 2011).

Other potential users of this technology have not embraced

it because of high cost of hardware and software involved

(Ford, 2007; Kessy, Kaemba and Gachoka, 2007).

According to Nyabiange (2011) digital and wireless

communication technology applications would stimulate

creativity and promote economic growth. This is possible as

the technology allows for users of this technology to share

knowledge and research with ease. In the event of doing all

these they are able to encounter new approaches to solve

given problems which they can customize to fit their needs

hence supporting creativity and innovation.

Entrepreneurship development accounts for quicker economic

growth (Kenya ICT Board, n.d). This implies that if digital

and wireless communication technology is harnessed

appropriately to promote entrepreneurship development then

quicker economic growth shall be realized in the country.

There exists dire need of fostering entrepreneurship

development to enhance economic growth (Mugambi, 2011).

Technology advancement translates to advancement in economic

growth (Redfern, 2011; Etten and Elda, 2005; Gester

consultants, 2008). In this regard if digital and wireless

communication technology is enabled then there exist chances

of fostering economic growth in Kisumu west district in the

5

county of Kisumu. A lag in the penetration and adaptability

of this technology would therefore mean slow economic

growth.

Despite all these being highlighted much literature had not

been availed to show what factors have caused low

penetration levels of the technology in the study area, the

relationship between the investment in digital and wireless

communication technology and entrepreneurship development in

Kisumu west district and how much this technology could be

effectively harnessed to spur entrepreneurship development.

The study aimed at availing information to fill this gap.

1.3 Purpose of the Study

The purpose of the study was to investigate the causes of

low penetration levels of digital and wireless communication

technology in Kisumu west of Kisumu County in Kenya, the

relationship between investment in this technology and

entrepreneurship development and establishing suitable means

of using the technology to support entrepreneurship

development in the study area.

1.4 Research Questions

1.4.1 What is responsible for low penetration levels of

digital and wireless communication technology in the study

area?

6

1.4.2 What is the relationship between investment in digital

and wireless communication technology and entrepreneurship

development in the study area?

1.4.3 How can penetration and use of this technology be

enhanced to promote entrepreneurship development in the

study area?

1.5 Justification of the Study

1.5.1 The policy makers (The government)

The government through its various organs especially the

Kenya ICT Board aims at the achievement of information-

based society for the realization of national development

goals and objectives for wealth and employment creation. The

government will use the findings of this study to reevaluate

its activities and perhaps apply recommendations made to

improve its performance.

1.5.2 Entrepreneurs

These persons scan environment, finds opportunities and use

the opportunities to maximize profits. They will be able

adopt proposed appropriate means of using digital and

wireless communication technology for the purpose of

enhancing economic growth. As major player in the economy

7

entrepreneurs will be able to contribute in enhancing

penetration levels of this technology in the county.

1.5.3 Software Developers

The digital word has really developed over the years.

Entrepreneurs need to design and develop better software to

address needs of entrepreneurs for increased and effective

production. Software developers shall find this study

beneficial as to forming a basis upon which to develop new

software to suit the ever growing demands and needs of

entrepreneurs and their clients.

1.6 Definition of terms

Digital communication

Thesaurus Dictionary (2008) defines digital communication as

an electronic transmission of information that has been

encoded digitally (as for storage and processing by

computers)

Entrepreneurship

Entrepreneurship is the process of starting up and

continuing to expand new business (Bwisa, 2011)

Information Communication Technology

8

This is a set of activities that are facilitated by

electronic means: the processing, transmission and display

of information (Estavillo, 2004).

Wireless Communication

Baruch (2000) defines wireless communication as a term used

to describe telecommunication in which electromagnetic waves

(rather than some form of wire) carry the signal over part

or the entire communication path. He clarifies that some

monitoring devices for example intrusion alarms, employ

acoustic waves at frequencies above the range of human

hearing but, they are also classified as wireless.

1.7 Scope of the Study

The study confined itself to the activities of

entrepreneurs, their customers and their employees in

relation to the use of digital and wireless and

communication technology. The study was conducted in Kisumu

west in the County of Kisumu that was having the following

divisions: Maseno and Kombewa divisions.

The research does not claim perfection as it was faced with

other limitations inherent in the survey research adopted.

Oso and Onen (2002) observed that the respondents might not

always be truthful in their answers to a survey.

1.8 Chapter summary

9

The chapter contained: background of the study, problem

statement, purpose of the study, research questions,

justification of the study, definition of key terminologies,

scope of the study and chapter summary.

The next chapter contains literature review which the

researcher used in the study encompassing: introduction,

what have been hindering the penetration of digital and

wireless communication technology in the study area, what is

the relationship between investment in digital and wireless

communication and entrepreneurship development in the county

and how best the penetration and use of the technology can

be promoted to foster entrepreneurship development in the

study area.

10

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This chapter contains literature that the researcher found

vital in the course of this study. Literature provided were

necessary in assisting the researcher to properly and

exhaustively investigate the extent of penetration of

digital and wireless communication in study area and the

relationship between investment in this technology and

entrepreneurship development by addressing the following

research questions: what has been hindering the penetration

of digital and wireless communication technology in Kisumu?,

11

what is the relationship between investment in digital and

wireless communication and entrepreneurship development in

Kisumu? And how can penetration and use of digital and

wireless communication technology be promoted to foster

entrepreneurship development in Kisumu?

2.2 What is responsible for low penetration levels of digital and wireless communication technology in Kisumu westdistrict of Kisumu County?

2.2.1 Lack of infrastructure

Lack of infrastructure to promote the penetration of this

technology has been found to be a major setback (Research

technology, 2011). Kessy, Kaemba and Gachoka(2006) mentioned

poor infrastructure which they explained to include:

unreliable transport, limited electricity supply and

broadcast and telecommunication facilities. Kessy et. al

(2006) were of the view that unsubsidized cost of

electricity in Kenya was making it difficult to use the

technology. Obijior, Inayatullah and Stevenson (2005) also

concurred with them that poor infrastructure was among the

many inhibiting factors to penetration of this technology.

Odunga (2011) noted that using phones in arid and semi arid

lands was frustrating and cumbersome because of poor network

coverage by internet service providers.

12

2.2.2 Inadequate government funding and limited credit facilities

Poor funding by the government has hindered the penetration

of this technology thus reducing the rate to which it would

have driven our economy (Research technology, 2011). The

article detailed that although innovation and technology

were hyped to be among future growth engines; allocation to

the sector still remained low: only a paltry Ksh 210 million

was put aside for setting up digital villages in all the

constituencies implying that each constituency received a

paltry Ksh 100 000.

Hefty tax for example excise duty and value added tax (VAT)

drives up costs of running a mobile phone hence limiting

their contribution to the economy (Nyabiange, 2010). The

government should also give tax relief to ISP such that the

charges to users of this technology would be considerably

lowered. Otherwise with this hefty tax more the consumers

gets over burdened and this slows down the penetration

levels and the use of the technology in Kisumu.

Nyabiange (2011) appreciated the government endeavor to

award grants to individuals and companies to develop web and

mobile phone applications but noted that the funding was

much more below what would be required.

Many people significantly need credit facilities to enhance

their entrepreneurial participation through digital and

13

wireless communication technology. These credit facilities

are lacking because Multinational companies in the banking

and information technology sector see poor communities

mostly found in Africa not to form significant market.

Financing to establish infrastructure to support this

technology is considerably slow (Parahaland, Hammond, Markel

foundation and Research institute, 2002). Nettesheim, Manget

and Boston consulting group (2002) on seeing the need to

increase credit facilities to the poor to facilitate the

penetration of this technology recommended that corporations

recognize digital investment as real option on future

returns and so extend loans to projects that would promote

the adoption of this technology.

2.2.3 Security Issues and Activities of Internet Service Providers.

Security issues have been given a lot of publicity hence

scaring away the, would be consumers of digital and wireless

communication technology. Shahonya (2011) describes how

‘phishing’ attacks collect sensitive data from users which

fraudsters use to cause damage. Computer and network

security address four requirements: confidentiality,

integrity, availability and authenticity (Stallings, 2005).

In regard to this availability of service was an issue when

14

M-pesa system crushed and clients were not able to transact.

Dafala (2011) called upon policy makers to come up with

policies that would shield mobile phone users from

fraudsters as it was eminent that prison inmates were

swindling Kenyans through mobile phones. This also raised

security concerns in regard to integrity and

confidentiality. He supported the government’s initiative to

ensure registering of all the subscriber identity modules

(SIM) cards. Wambugu (2011) suggested ways of hiding and

deleting files from computers as it was learnt that security

lapse would arise if these were not done properly hence

exposing users to dangers of loosing data or placing data in

the ‘wrong hands’.

Richmond (2011) pointed at web browsers as top target for

attackers. Nyabiage (2011) reported lose of Ksh. 2.96

billion in the year 2010 to internet fraudsters. Sihanya

(2011) acknowledged cyber crime as a challenge to the

adoption of this technology. Ekine (2009) listed fraud among

negative impacts of mobile phone use in Africa.

Internet service providers were seen as a hindrance to

penetration of this technology as they were misleading

customers in their advertisements. They were found to be

offering less than what they were promising their customers;

away not considered suitable for making business (Bindra,

15

2010). High frequency fees on telecom firms were

discouraging consumers of this technology (Nyabiange, 2011).

2.2.4 Poor leadership and deception by those who fear change

Africa is experiencing a lot of political unrest. Every

business activity requires calm and peace for success to be

realized. Mostly in Africa these revolts are associated to

absence of democracy. With common political unrests,

economic activities cannot take place and investors are

scared away for nobody would invest in an area knowing very

well that loses are to be incurred. Investment in digital

and wireless technology is also affected negatively once

democratic space is not adequate (Obijofor, et.al 2005).

Political leaders are very slow in formulating policies to

regulate the use of digital and wireless communication

technology hence hindering the penetration of this

technology. Such policies if good and in place would help

curb problems of security (Obijorfor et al. [2005]; Kessy et

al. [2000])

Corruption practices by our political leadership encourage

poor governance, misappropriation of allocated government

funds and foreign aid thereby depriving the technology the

funding needed to cause it help foster entrepreneurship

development. As a result not enough funds are available for

purchasing software and hardware material needed (Kessy et

al, 2006).

16

Some persons who feel comfortable in the current state of

affairs are not ready and willing to embrace this modern

technology and are propagating none factual statements about

this technology. These misleading statements cause panic and

fear among the, would be users of this technology. A writer

concurs with this idea when he expressed his concern about a

situation that had earlier been put to the public before

thorough research to prove it beyond any reasonable doubt.

It had been put for the public to believe that radio

frequency electromagnetic fields emitted by mobile phones

and computers were carcinogenic to human beings. Further

research activities have proved that this is not so (Mobile

phones, 2011). Mutambo (2011) portrayed this technology in a

negative way that would cause its consumers to shy from it

when he reported that this technology derails war on fake

products and that it encourages fake products to get to the

consumers.

Letiwa, (2011) reported that web based surveillance systems

complimented with GSM based alarm systems forms a security

system that is striving to discard human guards. This is

none factual statement as no technology can completely

eliminate human labor but it can cause uprising by trade

unions. These are statements that easily hinder the

penetration of the technology.

17

Emphasis on the negative impacts of social networks using

this technology as a platform also discourage its adoption

among people that would have used it( Face-book prompting

teenage pregnancies, [2011]; Universal brouhaha,[2010]).

2.3 What is the relationship between investment in digital and wireless communication and entrepreneurship development in Kisumu?

Digital and wireless communication technology without doubt

is enormously powerful tools for development; creating jobs,

transforming education, healthcare, commerce, politics and

more. The technology can help in the delivering of

humanitarian assistance and even contribute to peace and

security. One of the most pressing challenges in the new

century is to harness, this extraordinary force, spread it

throughout the world, and make benefits accessible and

meaningful for all humanity in particular the poor (Koffi

Annan, 2001). Digital entrepreneurship is essential to

sustainable socio economic development and poverty

alleviation (Moore and Palfrey, n.d.).

Information communication technology is perceived as a

catalyst for economic growth (Bongo, [2004]; Ekine, [2010]).

A higher level of ICT capital per capital allows a typical

economy to achieve a higher growth rate for a given level of

growth in labour and capital inputs (Vu, 2004). Economic

growth is the increasing ability of a nation to produce more

goods and services (Miles, 2001).

18

According to Ndemo (2011) there exists a correlation between

countries with developed infrastructure facilities in

digital and wireless communication technologies and high

level of entrepreneurship.

Growth can occur in two different ways; the increased use of

land, labour, capital and entrepreneurial resources, by

using better technology or management technologies and

increased productivity of existing resources use through

rising labour and capital productivity (Miles, 2001). This

advocates for the importance of digital and wireless

communication technology in contributing to economic growth.

Batchelor, et. al. (2003) agreed that there existed

widespread hope within the international development

community that digital and wireless communication technology

could be a powerful tool of development and poverty

reduction and achieving the millennium development goals.

Chrisanthi (2003) in his study noted that contemporary

discourse on development consistently identified digital and

wireless communication technology as a requirement for

economic growth and improved social conditions.

Interventions to develop digital and wireless communication

technology service on poor regions bear implicit promises

for economic benefits through participation in the global

market and for rationalized citizens/ government

interventions. Moreover there is a tendency to visualize

19

digital centers as sustainable business in their own right

(Best and Mackay, 2000).

Digital and wireless communication technology can empower

teachers and learners, promote change and foster development

(Trucado, 2005). Kinyonge (2011) said that e-library would

enable Kenyans get similar integrated information, thus

enhancing literacy levels.

Digital and wireless communication technology if used

properly would make service delivery to be faster and more

reliable such that availability of information is enhanced

to be within 24 hours daily (Ministry of information

communication and the Kenya ICT board, 2011).Kenya

entrepreneurs could increase their efficiency and boost

chances of retaining clients, if they used high-speed

internet technologies to access information (Use of ICT will

boost growth, 2011).

Digital and wireless communication technology with its

intelligent IT systems used to manage business processes,

delivering of products, and expiry of these products in the

ware house and with this inefficiency would be a thing of

the past (New technology, 2010).

According to Ondari (2010) digital and wireless

communication technology enhance efficiency and speed of

filling online visa forms which consequently speeds up

travelling to combat unnecessary delays in business trips.

20

Al Kags (2011) demeaned automation process by Kenya Revenue

Authority (KRA) of cargo clearance and stated that

automation by digital and wireless communication technology

should cause efficiency.

Democracy and good governance builds investors confidence.

We should go electronic to avoid poll rigging claims and

revolts in the developing countries (Mulochi, 2011). Ekine

(2010) was also supporting the use of digital and wireless

communication in delivering election results. Digital and

wireless communication technology would eliminate cases of

cheating and double registration if adopted by electoral

bodies (Kit for e-listing, 2010). Uprising against bad

leadership is possible courtesy of digital and wireless

communication technology (Nyathi, 2011).

Digital and wireless communication technology drives growth

among industry players by giving access to information

(Ekine, 2010). Ndemo (2011) endorsed the use of internet in

improving business growth by producing information and

knowledge. Gester consulting (2008) agreed that digital and

wireless communication technology practice give people a

voice.

Justice delayed is justice denied. Digital document

management systems in the Kenya judiciary would be versatile

and missing court files would be a thing of the past (Wako,

2011). Electronic process would make the Supreme Court

21

paperless hence consequently enhancing better management at

the court (Digital Audio, 2011).

Ecommerce depend on digital and wireless communication

technology. Many financial and business deals are now

transacted by phones (Wambugu, 2010). E-government services

allow entrepreneurs to transact with the government

digitally (Ekine, 2010).

Internet-led channels, work site marketing, telemarketing,

partnering with invisible insurer and virtual marketing are

some alternative channels with high potential in Kenya

market (Mugambi, 2011). Digital marketing provides

opportunity to invest in exploiting new marketing frontiers

given the deepening internet penetration in the continent

(Digital marketing, 2011).

According to Letiwa (2011) digital and wireless

communication technology enables retailers to get more

profits.

Internet allows for connection between farmers and buyers in

the market. Arid Land Information Network (ALIN) launched an

online forum called ‘Sokopepe’, which was linking farmers

directly to buyers hence eliminating middle men while

enhancing profitability levels among farmers (Ndirangu,

2010).

22

Digital and wireless communication technology is able to

create business and also support other businesses for

example IT-e-waste handling firms (e-waste recycling, 2010).

Digital advertising should be maximized (Firms join hands,

2010).

Technology promote social, professional and political

interactions if taken positively; hence would promote socio-

economic development in the area (Network for professionals,

2011).

According to Onyango (2010) boys learn more about

relationships from the internet due to negligence on the

part of their parents and so this technology should be

embraced as it avails information to build our boys morally.

These kind of opinions even though do motivate people to

embrace this technology should be treated cautiously.

Generally as much as some people take it that what comes

from the internet is amoral, to a greater extent people

learn many things from these social websites and so the

internet should be viewed positively.

Increasingly digital and wireless communication technology

is becoming pivotal for economic growth. By enabling virtual

mobility, the technology provides means to undertake many of

the activities that have so far needed physical transport

(Lake, 2004). In support of lake’s views, it is also true to

say that the use of email, online banking and ecommerce has

23

significantly cut down on the physical transportation

involved in sending mails, banking and buying goods which as

a result save money.

E-learning enhances human capital utilization by

entrepreneurs. Employees are able to continue offering their

services from remote locations hence reducing loss of man-

hours at their place of work (Obijofor et.al, 2005).

Healthy nations are able to produce more commodities hence

grow economically at a faster rate. Telemedicine allows

doctors to attend to their patients from remote locations

and this allows for efficiency in service delivery

((Obijofor et.al, 2005).

2.4 How can penetration and use of digital and wireless communication technology be promoted to foster entrepreneurship development in Kisumu County?

2.4.1 Promoting penetration of digital and wireless communication technology.

Computing devices involved in digital and wireless

communication needed electricity to operate. Uninterrupted

supply of electricity for the operations of this technology

is therefore paramount and of great significance (Obijofor

et.al, 2005).

24

Multinational companies dealing in computing gadgets

(Hardware and software) should be priding low cost devices

to enhance penetration of this technology among the poor

population in the developing countries. ( Netteshem , Manget

and Boston consulting Groups, 2002).

A lot of publications in support of this technology should

be made available to the public to eliminate ignorance.

These campaigns are vital in popularizing this technology

(Anani, [2011], Nyabiange, [2010]; Mukinda, [2011]).

Apt policies to regulate the use of ICT in the country

should be sound enough to support the ever changing trends

in our socio-economic environment (Moore and Palfrey,n.d).

Cyber crime should be minimized. This is only achievable by

offering training to key players in the market on how to

secure data or information that they wish to store or share

with others using this digital and wireless communication

technology (Shahonya,[2011];new defense package,[2011];

Gitari,[2010]).

Research and innovation should be encouraged to help in

coming up with software and modified hardware to facilitate

the use of digital and wireless communication (Prahalad

Hammond, Markel and world research Institutes, 2002).

Poverty in Africa and other parts of the world has been a

hindrance to the spread of this technology. Many persons

25

prefer to spend in health and social welfare commitment a

condition that is undercutting attention to digital and

wireless communication. Poverty eradication projects should

be emphasized (Aido, 2005).

Over relying of expatriate to maintain and repair our

digital and wireless communication technology equipment

should be discouraged such that local people are also given

opportunity to participate in this field. This shall cause

them to develop confidence and also help us cut down

expenditure on repair and maintenance (United Nations

Economic Commission for Africa, 2005; Aido, 2005).

The government should support projects aimed at enhancing

the distribution for this technology in the country by

offering incentives to investors like inform of zero rating

taxes on computing gadgets, offering affordable loans and

increase funding to these projects (Nyabiage, [2011];

Ministry of Information & Communication & Kenya ICT Board,

[2011]; Mugambi,[2011]). Good leadership, enhanced democracy

and accountability and integrity should be enhanced among

the ruling class to offer conducive business environment for

entrepreneurs to exploit this technology for economic growth

(Kessy et.al,[ 2006]; Abijofor et.al, [2005]).

Computers should no longer be seen as a status symbol but be

seen as an essential item to be used for information

26

sharing. This change of perception on computers is vital

(Obijofor et.al, 2005).

2.4.2 Best means of using digital and wireless communicationtechnology to foster entrepreneurship development inKisumu County.

Developing our software to be versatile in nature like the

one developed by Orange money that powered by Equity bank

was enabling its clients to send money, withdraw, apply and

receive loans and transaction with all banks in Kenya and

allow for money transactions to the existing mobile money

platforms as well as payments of utility bills unveil proper

use of digital and wireless communication technology (Nation

correspondence, 2010).

Wambugu (2010) reports on how an enterprising doctor had

gone telemedicine such that the doctor was being consulted

by patients and other doctors from remote locations on his

laptop.

Oak (2010) described how educators are capable of using

computers to disseminate knowledge to students. The

educators are currently sending study material to students

from remote locations courtesy digital and wireless


Brave (2010) inventor of Bay notes software stated that the

best way to understand people is not to ask them or make

them tell what they are like; but to watch them. He

27

developed Bay note software which is installed in the

machines that run a company’s website. The software tracks

purchase and also watches users’ behaviors where a user

scrolls to a page, how much time he/she spends on each page

and when she clicks, this helps in market research.

2.5 chapter summary

This chapter covered literature review in the order

presented: introduction, causes of low penetration levels of

digital and wireless communication in Kisumu county,

relationship between investment in digital and wireless

communication technology and entrepreneurship development

in Kisumu County and how best the penetration and use of the

technology could be enhanced in the county.

The next chapter gives the details of methodology used in

the study as follows: introduction, research design, data

collection methods, data analysis and presentation.

28

CHAPTER THREE

3.0 METHODOLOGY

3.1 Introduction

This chapter contains methodology used in the study. It

presents research design, population of the study, sampling

technique and sample size, data collection methods, data

analysis and presentation.

3.2 Research design

The research design provides the glue that holds the

research project together. A design is used to structure the

research, show how all of the major parts of the research

project such as the samples or groups, measures, treatments

or programs, and methods of assignment of work together to

address the central research questions (Trochim,2006). This

research was qualitative in nature. The research interviews

were carried out at the premises of respondents.

In regard to this work, a case study was chosen as an

effective method to answer the relevant research questions.

The purpose of the case study method is to obtain

information from knowledgeable entrepreneurs who have

personal experiences in the field of the researcher’s

29

problem situation (Zikmund, 2003). It is expected that the

account of their organization’s experience in this regard

shall give an indication on the relationship between the

technology and entrepreneurship development. The reasons for

low penetration levels of digital and wireless communication

technology in Kisumu west District of Kisumu County were

determined. Also sought were ways of enhancing the usage of

this technology to spur entrepreneurship development in the

area.

The entrepreneurs, the consumers of the technology and heads

of post secondary learning institutions involved in digital

and wireless communication technology, were selected for

study and questions asked on; the factors causing low

penetration levels of this technology in Kisumu, whether

there is a relationship between investment in the technology

and development of entrepreneurship in the county, and how

best the technology can be harnessed to promote

entrepreneurship development in Kisumu. This was done

through interviews carried out with some entrepreneurs in

the technology sector.

3.2.1 Target population

The target population refers to the total number of

respondents, subjects or the total environment of interest

to the researcher. This is the part of the target population

which the researcher can actually reach (Oso, 2002). In this

30

study, the target population consisted of entrepreneurs and

their customers. Only entrepreneurs and customers using or

consuming or trading in gadgets of this technology were

considered or targeted for the purpose of the study.

Entrepreneurs targeted were thirty M-pesa operators in

various markets of Kisumu West. Cybercafé owners were also

targeted. There are only three cybercafés in the district.

Community based organizations acting as resource centers

which are eight in number in the district were treated as

entrepreneurial enterprises and their managers and customers

considered for the study.

Also targeted was that part of population composed of heads

of the post secondary training institutions in the district

namely Maseno University, Maseno Youth Polytechnic, Langi

youth polytechnic, Bar Korua youth polytechnic and Lung’a

youth polytechnic.

Administrators of the two private hospitals in the district

were targeted as well. These hospitals were Masaba hospital

and Maseno mission hospital. Two farmers who happen to had

been trained in agribusiness by the ministry of agriculture

were involved. The farm is located between Mirieri market

and Kolenyo market.

3.2.2 Sampling technique and sample size

3.2.2.1 Sampling technique

31

If clusters happen to be geographical subdivisions, cluster

sampling is better known as area sampling (Kenya institute

of management, 2009). Area sampling technique was used for

in this study. The area was divided into geographical

regions as; Maseno division and Kombewa division of Kisumu

west district of Kisumu County. Entrepreneurs, twenty five

from every division were targeted as part of the population.

Fifty consumers of the technology were targeted in every

division. Only five post secondary school Institutions were

involve in the district.

Respondents were later picked by use of judgmental sampling

technique within the geographical regions herein described.

3.2.2.2 Sample size

From the target population of 105 a sample size was

determined. According to Naasiuma (2000), the formula of

determining the sample size states that:

n= (NCr2)/ (Cr2 + (N-1) e2)

Where: n= desired sample size

N = Target population

Cr= Coefficient of variations (take 0.5)

e= Tolerance at desired level of confidence, take 0.05 at

95% confidence level.

32

Sample size was determined for every population unit

described above as shown below:

Entrepreneurs and customers/consumers of the technology

n= 50(0.5)2/ (0.5)2+ (49) (0.05)2=34

Customers/consumers of the technology

n= 100(0.5)2/ (0.5)2+ (99) (0.05)2=51

Heads of educational institutions involved in using the

technology

n= 5(0.5)2/ (0.5)2+ (4) (0.05)2=5

A summary of sample size is shown here below.

Table 1: Sample size as extracted from the population

Population

description

Target

population

Percentage Sample size

Entrepreneurs 50 37.7% 34Consumers 100 56.7% 51Heads of

educational

institutions

5 5.6% 5

Total 155 100% 90Source: Author

33

3.3 Data collection methods

3.3.1 Interviews

Data collection is a critical stage of the research because

the research project is no better than data collected in the

field (Zikmund, 2003). The data for this study was collected

by the researcher in person through interviews with

entrepreneurs, their customers, and heads of post secondary

institutions of learning. The research method used; semi

formal interviews with respondents was conducted with

predetermined interview questionnaire but semi formal in the

sense that respondents were allowed to elaborate on their

answers to give more clarity. Responses during interviews

were recorded manually through notes.

3.3.2 Questionnaires

Questionnaire is a formalized schedule or form which

contains an assembly of carefully formulated questions for

information gathering (Kerlinger, 1973). It is a document on

which the interviewer records the answers given by the

respondents (Quee, 1999). It is a collection of items to

which a respondent is expected to react usually in writing

or by selecting the most alternate option from the

alternative choices (Oso, 2002). This instrument was used to

collect information over a very short period of time. It was

suitable because the target population and the sample size

34

were literate and the information required could easily be

expressed in writing.

3.3.3 Observation

The researcher used observation while collecting data so as

to be able to get information needed in their natural state.

Some times respondents have the tendencies of giving

screened information and this could be easily eliminated by

so carrying out observation.

3.4 Data collection procedures

The researcher made questionnaires, observational guides and

interview schedules and involved other researchers to critic

them. They were tested for validity and reliability before

they were exposed for use by the respondents.

Members from the population of the study were allowed to

carry home questionnaires to be able to fill at their own

convenience within a stipulated period of time which was

largely agreed upon.

Some members were interviewed; all this exercise was aimed

at establishing different views with the hope that facts

will be adduced and eventually come up with gainful

recommendations. Discussions and observation were carried

out to confirm the findings provided by the interviewers.

35

After the lapse of time raw data from respondents was

collected by the researcher for analysis.

3.5 Data analysis and presentation

Data collected from interviews were qualitatively analyzed

especially by correlation method as appropriate in order to

describe the nature of relationship between investment in

the technology and development in entrepreneurship,

establish factors hampering the penetration of the

technology and how best the technology can be utilized to

promoted entrepreneurship development in Kisumu west

district in the county of Kisumu

Qualitative methods were used to facilitate the explanation

of: low penetration levels of digital and wireless

communication technology in Kisumu west District of Kisumu

County, the relationship between investment in digital and

wireless communication technology and entrepreneurship

development and establishing suitable means of using the

technology to support entrepreneurship development in Kisumu

west District of Kisumu County.

Bar graphs, pie charts, tables and scatter diagrams were

used to present data for ease of interpretation. Computers

were used to process data and present it both in hard and

soft copies. Excel and SPSS were used for analysis;

determining percentages and generating graphs and pie charts

36

and producing scatter diagrams and working out correlation

coefficients respectively.

3.6 Chapter summary

This chapter contained: an introduction to methodology

employed during the study, research design, data collection

methods data analysis and presentation and limitations to

the study.

In the next chapter, an in-depth look at research findings

is presented. The chapter contains presentations, analysis

and interpretations.

37

CHAPTER FOUR

4.0 RESEARCH FINDINGS

4.1 Introduction

This chapter is concerned with presentations, analysis and

interpretations of data from the field.

After collecting raw data, the same was manipulated and

presented in suitable forms which could be easily

understood. By using tables, graphs, pie charts and scatter

diagrams to present data one is able to: find at a glance

the causes of low penetration levels of digital and wireless

communication technology in the study area, establish to

relationship between investment in the technology and

entrepreneurship development in the county and find how best

the technology can be used to spur entrepreneurship

development in the study area.

In this research, the researcher based his findings only on

the data collected during the study. This implies that

conclusions drawn from the study only apply to this

particular county and may not apply to other counties or

regions in the country. Each research question was dealt

with independently and findings discussed. The research

questions are already explained in the previous chapters.

38

When preparing for the collection of data the researcher

prepared for a sample of sixty nine but the number of

respondents that responded was only seventy three.

Table 2: Response rate

Sample size Actual

Response

Response Rate

Response 90 89 98.89%None response 1 1.11%Total 90 100%Source: Author, 2012

From the table above, it can be observed that 98.89% was the

response rate. This was a good figure from which data was

fetched and analyzed as is shown elsewhere in the chapter.

4.2 What is responsible for low penetration levels of the technology in Kisumu County?

To exhaustively address this question, the researcher posed

questions to respondents from which data used to find causes

of low penetration levels of the technology was determined.

The questions were analyzed as below.

4.2.1 Is electricity in adequate supply enough to encourage the use of digital and wireless communication in the county?

The ratings were assigned to correspond to a score or

weight. The weight and number of respondents, frequency in

favour of a certain position was then multiplied to give an

39

interpretation weighting on a five point scale labeled 5, 4,

3, 2, and 1.

Table 3: Confirmation as to whether electricity is in adequate supply in the county

Scale Weight Number of

response

Weight * Number

of responses

(wf)Strongly

agree

5 3 15

Agree 4 13 52Undecided 3 5 15Disagree 2 30 60Strongly

disagree

1 20 20

TOTAL =15∑ f=71∑ wf=162∑

Source: Author, 2012

Average mean weight= wf/ f = 162/71=2.28∑ ∑

The average weight 2.28 lies lower than 3, the midpoint of

the lickert scale and it is interpreted that the respondents

disagree with the proposition.

Response was also put in the bar graph to show levels of

acceptance of the proposition among respondents as below.

40

Figure 1:Levels of acceptance that supply of electricity inKisumu west district is enough to promote the use of digitaland wireless communication technology


4.2.2 Is your business area supplied with good broadcast andtelecommunication facilities so as to support the use of digital and wireless communication?

Weights and number of respondents frequency in favour of

this proposition was determined and tabulated as below.

41

Table 4: Support for availability of broadcast and telecommunication facilities to support the penetration levels and useof the technology


response

Weight * Number

of responses

(wf)Strongly

agree

5 4 20


disagree

1 22 22

TOTAL =15∑ f=71∑ wf=164∑


Average mean weight= wf/ f = 164/71=2.31 ∑ ∑






42

Figure 2: Supply of broadcasting and telecommunicationfacilities supporting the technology use and penetration inthe study area


43

4.2.3 Are there good transport networks in your place of operation to spur faster penetration of the technology in the County?



Table 5: Support for good transport network to enhance the penetration levels and use of the technology in the study area


response

Weight * Number

of responses

(wf)Strongly

agree

5 2 10


disagree

1 24 24

TOTAL =15∑ f=71∑ wf=154∑



44




Response was also put in the pie chart to show levels of


45

Figure 3: Response in support of transport being adequate toenhance the penetration and use of the technology in Kisumuwest district


4.2.4 Has the government been giving enough financial assistance to support the high penetration rates and use of digital and wireless communication in the county?



Table 6: Support that financial aid by the government is enough to enhance the penetration levels and use of the technology in the study area


response

Weight * Number

of responses

(wf)Strongly

agree

5 3 15

Agree 4 10 40Undecided 3 5 15Disagree 2 31 62

46

Strongly

disagree

1 24 24

TOTAL =15∑ f=71∑ wf=156∑








47

Figure 4: Support that financial aid by the government isenough to enhance the penetration levels and use of thetechnology in the study area


4.2.5 Have other stakeholders been giving adequate credit facilities to encourage the use of digital and wireless communication technology?



48

Table 7: Support that financial aid by the government is enough to enhancethe penetration levels and use of the technology in the study area


response

Weight * Number

of responses (wf)Strongly

agree

5 3 15


disagree

1 21 21

TOTAL =15∑ f=71∑ wf=165∑


Average mean weight= wf/ f = 16571=2.32∑ ∑






49

Figure 5: Degree of agreement among respondents as towhether other stakeholders have been giving enough fundingto encourage penetration and use of the technology in Kisumuwest district


4.2.6: Do you accept that security issues are among the manyother things which are hampering the, would be rapid penetration and use of the technology?



50

Table 8: Support that security issues are a threat to penetration rate and use of the technology in the area


response

Weight * Number


agree

5 30 150


disagree

1 3 3

TOTAL =15∑ f=90∑ wf=339∑



The average weight 3.77 lies higher than 3, the midpoint of


agree with the proposition.



51

Figure 6: Degree of a agreement among respondents as towhether security issues discourage penetration and use ofthe technology in the district


4.2.7 Do you agree that civil unrests have caused the slow penetration rate of the technology in the county?



53

Table 9: Acceptance levels that civil unrests cause slow penetration rateof the technology


response

Weight * Number


agree

5 32 160


disagree

1 4 4

TOTAL =15∑ f=90∑ wf=336∑








54

Figure 7: Response as to whether civil unrests slow downpenetration rate of the technology in Kisumu west district


4.2.8 Is it true to say that many people fear change and areresisting the use of digital and wireless communication hence low penetration of this technology?



55

Table 10: Acceptance levels that fear to change is a cause to slow penetration rate of the technology


response

Weight * Number


agree

5 30 150


disagree

1 1 1

TOTAL =15∑ f=90∑ wf=343∑








56

Figure 8: Low penetration of the technology is due toresistance to change among residents of Kisumu west district


58

4.2.9 Is it true to say that political leaders are very slowin formulating policies to regulate the use of the technology hence, causing fear to adopt the technology amongresidence of Kisumu west district in the county of Kisumu?



Table 11: Support that financial aid by the government is enough to enhance the penetration levels of the technology in the study area


response

Weight * Number


agree

5 5 25


disagree

1 5 5

TOTAL =15∑ f=90∑ wf=286∑






59



Figure 9: Political leaders are slow in formulatingregulations to control the use of the technology so peopleare slow to adopt the technology hence, causing its lowpenetration rate


60

4.2.10 Is corruption responsible for poor telecommunication network in the study area and so causing slow penetration ofthe technology?



Table 12: Acceptance levels that corruption is responsible for low penetration of the technology in the district


response

Weight * Number


agree

5 40 200


disagree

1 5 5

TOTAL =15∑ f=90∑ wf=360∑

61








62

Figure 10: Corruption is responsible for slow penetration ofthe technology in Kisumu west district


4.2.11 Do you believe that the technology is carcinogenic tohuman beings thereby causing its slow penetration?



63

Table 13: Acceptance levels that the technology is carcinogenic to human beings


response

Weight * Number


agree

5 5 25


disagree

1 30 30

TOTAL =15∑ f=90∑ wf=224∑








64

Figure 11: Digital and wireless communication technology iscarcinogenic to human beings


4.2.12 Do you believe that once people get to use this technology the persons working in such fields shall be rendered jobless and some trade unions are advocating against the use of digital and wireless communication technology?

65



Table 14: Technology shall eliminate human labour hence render many persons jobless


response

Weight * Number


agree

5 5 25


disagree

1 5 5

TOTAL =15∑ f=90∑ wf=270∑


Average mean weight= wf/ f = 270/90=3∑ ∑

The average weight is 3, the midpoint of the lickert scale

and it is interpreted that the respondents neither agrees

66

nor disagree with the proposition. The result here was

rather neutral.



67

Figure 12: Digital and wireless communication technologyshall eliminate human labour if put in use


4.2.13 Do you accept that high taxation by the government isa threat to penetration and subsequent use of this technology?



68

Table 15: Acceptance that high taxation by the government isa threat to penetration and use of the technology


response

Weight * Number


agree

5 14 70


disagree

1 5 5

TOTAL =15∑ f=90∑ wf=305∑








69

Figure 13: High taxation by the government slows downpenetration rate and use of the technology


4.2.14 Do you accept that some persons feel that the technology is highly responsible for moral decadence in our society; that its use should be discouraged hence causing its low penetration in the county?



70

Table 16: The technology is responsible for moral decadence in our society


response

Weight * Number


agree

5 20 100


disagree

1 3 3

TOTAL =15∑ f=90∑ wf=340∑








71

Figure 14: Technology promotes moral decadence among membersof the society


4.2.15 Is the high cost of hardware and software a hindranceto penetration of the technology in the county?



72

Table 17: High cost of hardware and software necessary for technology is a hindrance to the penetration of this technology in the area


response

Weight * Number


agree

5 20 100


disagree

1 3 3

TOTAL =15∑ f=90∑ wf=320∑








73

Figure 15: High cost of hardware and software; a hindranceto penetration of digital and wireless communicationtechnology


4.3. What is the relationship between investment in digital and wireless communication technology and entrepreneurship development in Kisumu west district?

74

In this question relation between two variables was to be

determined. Independent variable was Investment in digital

and wireless communication technology while dependent

variable was entrepreneurship development. Investment in

technology was measured in Kenya shillings while

entrepreneurship development was put in: Number of employees

that businesses were able to employ in technology, Value of

educational material that were got as a result of using the

technology, Value of health services offered to patients,

Volume of sales in Kenya shillings, Time saved in hours,

returns from the farm, number of customers contacted via use

of technology, Value of goods saved from expiry due to

technology use, Eliminated cost of travelling due virtual

transport supported by the technology, number of friends

contacted or created using the t5echnology, savings on

consultancy due to use of technology in discovering

knowledge, cash saved from misappropriation, number of

people talked to about leadership practices, number of

decisions reached due to use of technology, and cost of

paying bills while using the technology.

4.3.1. Give the number of employees engaged as appropriate against an estimate of your investment in the technology

Data was collected and presented in the table and figure as

below.

75

Table 18: The number of employees against Investment

Investment value in KSH No. of employees involved10000 212000 618000 925000 1226000 14

Source:

Author,

2012

Source:Author,2012A

correlation analysis on the data as shown in the table andscatter diagram above indicates that a relation existsbetween the variables (r = 0.993, α = 0.01). The plottedscatter diagrams shows a positive relation between thevariables that is an increase in the investment in digitaland wireless communication technology causes an increase inthe number of employees. To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearsons;

76

Figure 16: Relationship between investment in the

technology and number of employees

Figure 16: Relationship between investment in thetechnology and the number of employees

product moment coefficient of correlation r = 0.993 is highand suggests a strong relationship. The r squared = 0.987indicating that 98.7% of the change in the number ofemployees could be explained by a unit change in level ofinvestment in the technology. The beta β = 0.993 is however significantly higher than 0and hence the linear relationship holds with a model:E=0.400+0.01I Where E = Number of employeesI= investment in the technology

4.3.2. Kindly give estimate value of educational material obtained through this technology in relation to the value ofinvestment in the technology at the time.


below.

Table 19: Relationship between investment in the technology and value of educational material obtained

Table 19: Relationship between investment in technology and the value of educational material obtained

Investment value in KSH Value of educational material

obtained5000 2000010000 5000015000 5600020000 8000025000 99000Source: Author, 2012

77

Figure 17: Relationship between technology and value ofeducational material got


A correlation analysis on the data as shown in the table andscatter diagram above indicates that a relation existsbetween the variables (r = 0.986, α = 0.02). The plottedscatter diagrams shows a positive relation between thevariables that is an increase in the investment in digitaland wireless communication technology causes an increase inthe value of educational material. To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.986 is highand suggests a strong relationship. The r squared = 0.973indicating that 97.3% of the change in the value ofeducational materials could be explained by a unit change inlevel of investment in the technology.

78

The beta β = 0.986 is however significantly higher than 0and hence the linear relationship holds with a model:E=4600.00+3.760I Where E = Value of educational materialI= investment in the technology

4.3.3. Estimate the value of health services extended to your customers while using this technology corresponding to approximate value of your in the technology (Health workers)


below.

Table 20: Effects of the technology on value of health services extended to patients

Investment value in KSH Value of service in KSH5000 2700010000 20010015000 25000020000 28500025000 285000Source: Author, 2012

79

Figure 18: Relation between technology and value of health services extended


A correlation analysis on the data as shown in the table andscatter diagram above indicates that a relation existsbetween the variables (r = 0.882, α = 0.48). The plottedscatter diagrams shows a positive relation between thevariables that is an increase in the investment in digitaland wireless communication technology causes an increase inthe value of health services extended to patients throughthe technology. To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.882 is highand suggests a strong relationship. The r squared = 0.778indicating that 77.8% of the change in the value of healthservices offered to patients could be explained by a unitchange in level of investment in the technology. The beta β = 0.882 is however significantly higher than 0and hence the linear relationship holds with a model:E=29150+12.018I Where E = Value of health services extended to patients viathe technologyI= investment in the technology

4.3.4. Estimate the volume of your sales through the technology corresponding to the appropriate values of your investment in digital and wireless communication technology.


below.

80

Table 21: Investment in the technology against volume of sales

Investment value in KSH Volume of sales in KSH5000 1500010000 6500015000 9895020000 15000025000 160000Source: Author, 2012

Figure 19: Investment in technology against volume of sales

Source: Author, 2012 A correlation analysis on the data as shown in the table andscatter diagram above indicates that a relation existsbetween the variables (r = 0.984, α = 0.02). The plottedscatter diagrams shows a positive relation between thevariables that is an increase in the investment in digital

81

and wireless communication technology causes an increase inthe volume of sales through the technology. To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.984 is highand suggests a strong relationship. The r squared = 0.968indicating that 96.8% of the change in the volume of salescould be explained by a unit change in level of investmentin the technology. The beta β = 0.984 is however significantly higher than 0and hence the linear relationship holds with a model: E= -14710+7.50I Where E = Volume of salesI= investment in the technology

4.3.5. Estimate the time saved in terms of hours corresponding to your investment in the technology i.e. at acertain value of investment, how much in terms of time were you able to save in the course of your business dealings in one month?


below.

Table 22: Investment against time saved in a month

Investment value in KSH Time saved in hours5000 1810000 1915000 36

82

20000 15025000 250Source: Author, 2012

Figure 20: Investment against time saved in a month

Figure 20: Investment in technology against time saved in amonth


A correlation analysis on the data as shown in the table and

scatter diagram above indicates that a relation exists

between the variables (r = 0.916, α = 0.029). The plotted

scatter diagrams shows a positive relation between the

variables that is an increase in the investment in digital

and wireless communication technology causes an increase in

the time saved on monthly basis through the technology.

83

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.916 is highand suggests a strong relationship. The r squared = 0.838indicating that 83.8% of the change in time saved on monthlybasis could be explained by a unit change in level ofinvestment in the technology. The beta β = 0.916 is however significantly higher than 0and hence the linear relationship holds with a model: E= -83.90+0.12I Where E = Time saved on monthly basisI= investment in the technology

4.3.6. Make an estimate value of your yields from your farm against your investment in the technology. (For those engaged in M-farming)


below.

Table 23: Relating investment in technology to returns from farming activities

Investment value in KSH Returns in KSH5000 6045010000 8552015000 12568020000 15069025000 251245Source: Author, 2012

84

Figure 21: Relating investment in technology to returns fromfarming activities






variables that is, an increase in the investment in digital


the value of yields from farms is through the technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.916 is highand suggests a strong relationship. The r squared = 0.913indicating that 91.3% of the change in value of yields

85

from farms could be explained by a unit change in level ofinvestment in the technology. The beta β = 0.956 is however significantly higher than 0and hence the linear relationship holds with a model: E=689+8.935I Where: E = value of yields from farmsI= investment in the technology

4.3.7. Give an estimate number of customers reached using the technology against investment in the technology.


below.

Table 24: Relation between investment and the number of customers contacted

Investment value in KSH Number of customers5000 5010000 7215000 8420000 8925000 100Source: Author, 2012

86

Figure 22: Relation between investment in technology and thenumber of customers contacted








the number of customers contacted through the technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.970 is highand suggests a strong relationship. The r squared = 0.940indicating that 83.8% of the change in number of customers

87

contacted could be explained by a unit change in level ofinvestment in the technology. The beta β = 0.970 is however significantly higher than 0and hence the linear relationship holds with a model: E=43.95+0.002I Where E = number of customers contactedI= investment in the technology

4.3.8. Give an estimate value of goods you were able to detect their expiry date using the technology and the value of your investment in technology at the time (Health workersand sellers of edible commodities).


below.

Table 25: Investment against value of goods saved from expiry by use of technology

Investment value in KSH Value of goods that

technology was used to detect

their expiry date5000 25000010000 28000015000 32500020000 20000025000 345000Source: Author, 2012

88

Figure 23: Investment in technology against value of goodssaved from expiry by use of technology








the number of customers contacted through the technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a weak relationship. The Karl’s Pearson’s; productmoment coefficient of correlation r = 0.299 is high and

89

suggests a strong relationship. The r squared = 0.089indicating that 8.9% of the change in number of customerscontacted could be explained by a unit change in level ofinvestment in the technology. The beta β = 0.299 is however significantly higher than 0and hence the linear relationship holds with a model: E=247000+2.200I Where E = number of customers contactedI= investment in the technology

4.3.9. State how much was saved in terms of travelling cost when the cost of investment in technology was as indicated


below.

Table 26: Investment against eliminated cost of travelling during business activities

Investment value in KSH Cost of travelling saved5000 9000010000 15000015000 17500020000 17600025000 231000Source: Author, 2012

90

Figure 24: Investment in technology against eliminated costof travelling during business transactions








the eliminated cost of travelling through the technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.954 is highand suggests a strong relationship. The r squared = 0.910indicating that 91% of the change in eliminated cost of

91

travelling could be explained by a unit change in level ofinvestment in the technology. The beta β = 0.954 is however significantly higher than 0and hence the linear relationship holds with a model: E=72000+6.160I Where E = Eliminated cost of travellingI= investment in the technology

4.3.10. State how many friends you created when the cost of your investment was as follows.


below.

Table 27: Investment in technology against number of friends created or contacted monthly

Investment value in KSH Number of friends contacted/

created5000 5910000 6715000 16020000 17525000 199Source: Author, 2012

92

Figure 25: Investment in technology against the number offriends contacted or created using the technology








the number of friends created or contacted through the

technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.950 is highand suggests a strong relationship. The r squared = 0.903indicating that 90.3% of the change in number of friends

93

contacted or created could be explained by a unit change inlevel of investment in the technology. The beta β = 0.950 is however significantly higher than 0and hence the linear relationship holds with a model: E=15.6+0.08I Where E = Number of friends created or contactedI= investment in the technology

4.3.11. Give an estimate value of savings on consultancy charges on poverty alleviation projects that you have managed to get while using this technology and correspondinginvestment at the time. (Community based organizations)


below.

Table 28: Investment in the technology against value of savings in consultancy

Investment value in KSH Savings on consultancy5000 5700010000 8950015000 15100020000 16500025000 166000Source: Author, 2012

94

Figure 26: Investment in technology against value of savingsin consultancy








the savings on consultancy services through the technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.936 is highand suggests a strong relationship. The r squared = 0.876indicating that 87.6% of the change in savings on

95

consultancy could be explained by a unit change in level ofinvestment in the technology. The beta β = 0.936 is however significantly higher than 0and hence the linear relationship holds with a model: E=37.650+5.870I Where E = Savings on consultancy servicesI= investment in the technology

4.3.12. Give an estimate value of cash that the technology has ever helped you to save from misappropriation (if any) and the corresponding value of investment in the technology at the said time.


below.

Table 29: Relating estimated investment in the technology tothe funds saved from misappropriation due to application of technology

Investment value in KSH Cash that would have been

lost5000 2500010000 2600015000 5000020000 6285025000 105000Source: Author, 2012

96

Figure 27: Relating investment in technology to funds savedfrom misappropriation








the funds saved from misapplication through the technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.948 is highand suggests a strong relationship. The r squared = 0.899indicating that 89.9% of the change in funds saved from

97

misappropriation could be explained by a unit change inlevel of investment in the technology. The beta β = 0.948 is however significantly higher than 0and hence the linear relationship holds with a model: E= -4895.000+3.921I Where E = Funds saved from misappropriationI= investment in the technology

4.3.13. Give an estimate number of people you have ever talked about leadership of an organization through the technology and the corresponding value of your investment inthe technology at the time.


below.

Table 30: Relating investment in the technology to leadership practices

Investment value in KSH Number of people contacted5000 2010000 4515000 6720000 8925000 129Author, 2012

98

Figure 28: Relating investment in technology to leadershippractices

Author, 2012







the number of people contacted on leadership practices

through the technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.992 is highand suggests a strong relationship. The r squared = 0.984indicating that 98.4% of the change in number of persons

99

contacted on leadership practices could be explained by aunit change in level of investment in the technology. The beta β = 0.992 is however significantly higher than 0and hence the linear relationship holds with a model: E= -8.600+0.005I Where E = Number of people contacted on leadership practicesI= investment in the technology

4.3.14. Give an estimate number of decisions made after applying the technology to search for suitable decisions against your investment in the said technology.


below.

Table 31: Relating investment in technology to decision making

Investment value in KSH Number of decisions made5000 2310000 4715000 2220000 6925000 75Author, 2012

A

100

Author, 2012


decision making

Figure 29: Relating investment in technology to decision making

correlation analysis on the data as shown in the table and






the number of decisions made with the help of the

technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.802 is highand suggests a strong relationship. The r squared = 0.643indicating that 64.3% of the change in number of decisionsmade could be explained by a unit change in level ofinvestment in the technology. The beta β = 0.802 is however significantly higher than 0and hence the linear relationship holds with a model: E=9.4+0.003I Where E = Number of decisions madeI= investment in the technology

4.3.15. What was your cost of paying your bills compared to your investment in the technology? (The cost here excludes the bill itself).


below.

101

Table 32: Relation between investment in the technology and cost of paying bills

Investment value in KSH Cost of paying bills5000 5200010000 4200015000 2700020000 1500025000 9000Author, 2012

Figure 30: Relation between investment in technology andcost of paying bills

Author, 2012






102


the cost of paying bills with the help of the technology.

To test whether this relation between the variables islinear, a regression analysis was run whose resultsindicated a strong relationship. The Karl’s Pearson’s;product moment coefficient of correlation r = 0.992 is highand suggests a strong relationship. The r squared = 0.984indicating that 98.4% of the change in the cost of payingbills could be explained by a unit change in level ofinvestment in the technology. The beta β = 0.992 is however significantly higher than 0and hence the linear relationship holds with a model: E=62900.00-2.260I Where E = Cost of paying for billsI= investment in the technology

4.4 How can penetration and use of digital and wireless communication technology be enhanced to promote entrepreneurship development in Kisumu west district of Kisumu County?

4.4.1. Do you believe that causing software to be versatile to do arrange of activities e.g. sending money, withdraw, apply and receive loans and other transactions would help indeveloping entrepreneurship in the district?



Table 33: Making more versatile software


response

Weight * Number

of responses (wf)Strongly 5 20 100

103

agreeAgree 4 30 120Undecided 3 23 69Disagree 2 14 28Strongly

disagree

1 3 3

TOTAL =15∑ f=90∑ wf=320∑








104

Figure 31: Versatile software


4.4.2. Do you accept that in cooperating the technology to address health issues shall foster entrepreneurship growth in the district?



Table 34: Integrating the use of technology in addressing health problems


response

Weight * Number

of responses

(wf)Strongly

agree

5 30 150

Agree 4 20 80Undecided 3 23 69

105

Disagree 2 11 22Strongly

disagree

1 6 6

TOTAL =15∑ f=90∑ wf=320∑








Figure 32: Using the technology to solve health relatedproblems


106

4.4.3: Can using technology to disseminate knowledge enhance development of entrepreneurship in the district?



Table 35: using digital and wireless communication technology to disseminate knowledge


response

Weight * Number


agree

5 35 175


disagree

1 6 6

TOTAL =15∑ f=90∑ wf=329∑



107






108

Figure 33: Using the technology to foster knowledgedissemination


4.4.4. Do you believe that using the technology in carrying out market research can promote growth in entrepreneurship in the district?



Table 36: Digital and wireless communication in carrying out market research


response

Weight * Number


agree

5 30 150

Agree 4 20 80Undecided 3 20 60Disagree 2 11 22Strongly 1 9 9

109

disagreeTOTAL =15∑ f=90∑ wf=321∑








Figure 34: Using technology in market research


4.4.5. Can the technology be used to enhance security consequently, fostering development in entrepreneurship?


this proposition was determined and tabulated as below.110

Table 37: Technology in enhancing security


response

Weight * Number


agree

5 30 150


disagree

1 9 9

TOTAL =15∑ f=90∑ wf=326∑








111

Figure 35: Digital and wireless communication in promotingsecurity in the regiopn


4.4.6. Is it true to say that using technology to monitor leadership personalities enhances entrepreneurship growth?



Table 38: Technology in monitoring leadership personalities to jump-start entrepreneurship growth


response

Weight * Number


agree

5 15 75


112









113

Figure 36: Using technology to monitor leadershippersonalities enhances entrepreneurship growth


4.4.7. Is Using technology to perform operations that would be dangerous to human beings be vital in promoting production and entrepreneurship development?



Table 39: Technology in performing dangerous operations


response

Weight * Number


agree

5 20 100


114

Strongly

disagree

1 9 9

TOTAL =15∑ f=90∑ wf=316∑





agree with the proposition. Response was also put in the bar

graph to show levels of acceptance of the proposition among

respondents as below.

Figure 37: Using technology to do activities considereddangerous to human beings encourage entrepreneurshippractices


4.4.8.Can the technology can be used to reinforce social fabrics of the society through social sites and hence promote entrepreneurship as entrepreneurs are members of thesociety and cannot live in isolation?

115



Table 40: Technology in reinforcing social fabrics of the society hence promoting entrepreneurship development


response

Weight * Number


agree

5 21 105


disagree

1 7 7

TOTAL =15∑ f=90∑ wf=321∑



116






117

Figure 38: Technology can be used to promote moral virtuesin the society


4.4.9. Is it true that using the technology can be used to strengthen the bond between customers and those who sell to them commodities?



Table 41: Technology in bonding customers and entrepreneurs


response

Weight * Number


agree

5 30 150


118

Strongly

disagree

1 15 15

TOTAL =15∑ f=90∑ wf=315∑








Figure 39: Use of technology creates strong bond betweenenterprenuers and consumers

Sources: Author, 2012

4.4.10. Is it in order to say that technology can be used tobring close services to the people so as to encourage

119

business potential and eliminate unnecessary delays in business transactions?



Table 42: Technology can be used to bring services close to customers


response

Weight * Number


agree

5 34 170


disagree

1 11 22

TOTAL =15∑ f=90∑ wf=352∑






120



Figure 40: Technology can be employed to bring goods andservices close to customers


4.4.11. Is it true that using technology to collect revenue from customers will eliminate corruption and enhance servicedelivery to its citizen entrepreneurs inclusive?



Table 43: technology can be used to collect revenue; eliminate corruption andenhance service delivery among government institutions


response

Weight * Number


agree

5 34 170

Agree 4 35 140

121

Undecided 3 6 18Disagree 2 7 14Strongly

disagree

1 8 8

TOTAL =15∑ f=90∑ wf=350∑








122

Figure 41: Technology in collecting revenue and eliminatingcorruption hence encouraging better service delivery by thegovernment


4.4.12. Is using technology able to create jobs hence helping potential entrepreneurs to accumulate capital required for their intended businesses?



Table 44: technology cap[able of being used to generate job opportunites


response

Weight * Number


agree

5 30 150

Agree 4 30 120Undecided 3 9 27

123

Disagree 2 10 20Strongly

disagree

1 11 11

TOTAL =15∑ f=90∑ wf=339∑








Figure 42: Technology can be used to create jobopportunities


124

4.4.13. Do you believe that technology would be used to monitor our roads and ease congestion in the roads hence facilitating movement of goods and services?



Table 45: technology use in monitoring traffic


response

Weight * Number


agree

5 31 155


disagree

1 11 11

TOTAL =15∑ f=90∑ wf=352∑



125






126

Figure 43: Technology can be used to monitor trafficconditions in our roads to enhance traffic flow


4.4.14. Can technology be used to promote creativity and innovation to help in solving various problems?



Table 46: Technology promotes creativity and innovation


response

Weight * Number


agree

5 31 155


127



Average mean weight= wf/ f =326/90=3.62∑ ∑






Figure 44: Using technology in promoting creativity andinnovation


128

4.4.15. Do you accept the technology would be used to facilitate quicker decision making, healthy for entrepreneurs?



Table 47: Technology facilitates decision making


response

Weight * Number


agree

5 30 150


disagree

1 12 12

TOTAL =15∑ f=90∑ wf=322∑


Average mean weight= wf/ f =326/90=3.57∑ ∑

129






Figure 45: Use of technology in fastening decision making


4.4.16 Do you agree that campaigns can be launched and used to popularize and encourage penetration of the technology inthe study area?



Table 48: Campaigns in support of the technology can encourage itspenetration in the study area


response

Weight * Number

of responses (wf)

130

Strongly

agree

5 30 150


disagree

1 9 9

TOTAL =15∑ f=90∑ wf=326∑








131

Figure 46: The technology penetration can be enhancedthrough positive campaigns


4.4.17 Do you agree that research and innovation can encourage penetration of the technology?



Table 49: Research and innovative activities can encourage penetration of the technology


response

Weight * Number


agree

5 30 150


132









Figure 47: Research and innovative practices promotespenetration levels of the technology


133

4.4.18 Do you agree that initiating poverty alleviation projects can encourage penetration of the technology in the area?



Table 50: Initiating poverty alleviation projects encourage penetration of the technology


response

Weight * Number


agree

5 20 100


disagree

1 9 9

TOTAL =15∑ f=90∑ wf=316∑






134



Figure 48: Establishing poverty alleviation projects wouldfoster quicker penetration of the technology in the area


135

4.4.19 Do you believe that doing a way with expatriates and engaging locals in the technology can cause high penetrationrates of the technology in the area?



Table 51: Engaging expatriates at the expense of locals discourages penetration of the technology


response

Weight * Number


agree

5 34 170


disagree

1 8 8

TOTAL =15∑ f=90∑ wf=350∑








136

Figure 49: Engaging locals while minimizing the number ofexpatriates in the technology sector promotes itspenetration in the study area


4.5 Chapter summary

This chapter was concerned with data presentation, analysis

and interpretation.

The next chapter contains; a summary, conclusion and

recommendations of the study

137

CHAPTER FIVE

5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter gives a summary, conclusion and recommendations

of the study

5.2 Research Summary

5.2.1 Purpose of the study

The purpose of this study was to investigate causes of low

penetration levels of digital and wireless communication

technology in Kisumu west district in the county of Kisumu,

the relationship between investment in the technology and

entrepreneurship development and establish suitable means of

using the technology to support entrepreneurship development

in the study area.

5.2.2 The research questions

The research questions were guiding this study were:

i. What is responsible for low penetration levels of digital

and wireless communication technology in Kisumu west

district?

ii. What is the relationship between investment in digital

and wireless communication technology and entrepreneurship

development in Kisumu west district?

138

iii. How can penetration and use of digital and wireless

communication technology be used to promote entrepreneurship

development in Kisumu west district?

5.2.3 Research design

In regard to this work, a case study was chosen as an

effective method to answer the relevant research questions.

The purpose of the case study method was to obtain

information from knowledgeable entrepreneurs who have

personal experiences in the field of the researcher’s

problem situation (Zikmund, 2003).

5.2.4 Population of the study and sampling technique

5.2.4.1 Population of the study

Only entrepreneurs and customers using or consuming or

trading in gadgets of this technology were considered or

targeted for the purpose of the study. Entrepreneurs

targeted were :thirty M-pesa operators in various markets of

Kisumu West,Cybercafé owners who were three in the

district, eight Community based organizations acting as

resource centers , heads of the post secondary training

institutions in the district namely Maseno University,

Maseno Youth Polytechnic, Langi youth polytechnic, Bar Korua

youth polytechnic and Lung’a youth polytechnic,

administrators of the two private hospitals in the district

139

and two farmers who happen to had been trained in

agribusiness by the ministry of agriculture

5.2.4.2 Sampling technique and sample size

5.2.4.2 .1 Sampling technique

If clusters happen to be geographical subdivisions, cluster

sampling is better known as area sampling (Kenya institute

of management, 2009). Area sampling technique was used for

in this study. The area was divided into geographical

regions as; Maseno division and Kombewa division of Kisumu

west district of Kisumu County. Entrepreneurs, twent five

from every division were targeted as part of the population.

Fifty consumers of the technology were targeted in every

division. Only five post secondary school Institutions were

involve in the district.

Respondents were later picked by use of judgmental sampling

technique within the geographical regions herein described.

5.2.4.2 .2 Sample size

140

Sample size was determined using the formula developed by

Naasiuma (2000), which states that:

n= (NCr2)/ (Cr2 + (N-1) e2). This is explained in details in

chapter three.

A summary of sample size as got from the population is shown

in table 1 in chapter three.

5.2.5 Data collection methods

5.2.5.1 Interviews

Data collection is a critical stage of the research because

the research project is no better than data collected in the

field (Zikmund, 2003). The data for this study was collected

by the researcher in person through interviews with

entrepreneurs, their customers, and heads of post secondary

institutions of learning. The research method used; semi

formal interviews with respondents was conducted with

predetermined interview questionnaire but semi formal in the

sense that respondents were allowed to elaborate on their

answers to give more clarity. Responses during interviews

were recorded manually through notes.

5.2.5.2 Questionnaires

Questionnaire is a formalized schedule or form which

contains an assembly of carefully formulated questions for

information gathering (Kerlinger, 1973). It is a document on

which the interviewer records the answers given by the141

respondents (Quee, 1999). It is a collection of items to

which a respondent is expected to react usually in writing

or by selecting the most alternate option from the

alternative choices (Oso, 2002). This instrument was used to

collect information over a very short period of time. It was

suitable because the target population and the sample size

were literate and the information required could easily be

expressed in writing.

5.2.5.3 Observation

The researcher used observation while collecting data so as

to be able to get information needed in their natural state.

Some times respondents have the tendencies of giving

screened information and this could be easily eliminated by

so carrying out observation.

5.2.5.4 Data collection procedures

The researcher made questionnaires, observational guides and

interview schedules and involved other researchers to critic

them. They were tested for validity and reliability before

they were exposed for use by the respondents.

Members from the population of the study were allowed to

carry home questionnaires to be able to fill at their own142

convenience within a stipulated period of time which was

largely agreed upon.

Some members were interviewed; all this exercise was aimed

at establishing different views with the hope that facts

will be adduced and eventually come up with gainful

recommendations. Discussions and observation were carried

out to confirm the findings provided by the interviewers.

After the lapse of time raw data from respondents was

collected by the researcher for analysis.

5.2.5.5 Data analysis and presentation

Data collected from interviews were qualitatively analyzed

especially by correlation method as appropriate in order to

describe the nature of relationship between investment in

the technology and development in entrepreneurship,

establish factors hampering the penetration of the

technology and how best the technology can be utilized to

promoted entrepreneurship development in Kisumu west

district in the county of Kisumu

Qualitative methods were used to facilitate the explanation

of: low penetration levels of digital and wireless

communication technology in Kisumu west District of Kisumu

County, the relationship between investment in digital and

wireless communication technology and entrepreneurship

development and establishing suitable means of using the

143

technology to support entrepreneurship development in Kisumu

west District of Kisumu County.

Bar graphs, pie charts, tables and scatter diagrams were

used to present data for ease of interpretation. Computers

were used to process data and present it both in hard and

soft copies. Excel and SPSS were used for analysis;

determining percentages and generating graphs and pie charts

and producing scatter diagrams and working out correlation

coefficients respectively.

5.3 Answers to research questions

5.3.1 What is responsible for low penetration levels of digital and wireless communication technology in Kisumu westdistrict?

5.3.1.1 Lack of infrastructure

Respondents in the study agreed that infrastructure

necessary for adoption of digital and wireless communication

technology was not in adequate supply in the area.

Electricity interruptions and lack of electric power in

various areas was a drawback in the implementation of the

technology to foster entrepreneurship development. A number

of areas were lacking good broadcast and telecommunication

infrastructure which forms the backbone to this technology

application and use. Lack of good roads serving the area was

also considered by many participants as a cause to low

penetration of the technology in the area. Accessing base

144

stations becomes difficult to internet service providers to

carry out maintenance work. This cuts off communication

links at times hence, hindering technology use and

penetration level in the district. This concurs with works

of other authors who had indicated that lack of

infrastructure discourage the penetration of digital and

wireless communication technology (Kessy et. al, [2006];

Obijorfor et.al, [2005]).

5.3.1.2 Funding

From the findings it is clear that lack of proper funding is

a cause to low penetration levels of this technology in the

study area. Entrepreneurs are deprived of purchasing power

once funding is limited. The government has been faulted for

having not given proper funding towards the technology

sector and imposing high taxes on the technology sector

players.

High cost of hardware and software and inadequate credit

facilities offered by financial institutions are also to

blame for slow pace of technology penetration in the area.

This proposition is also held by others (Research

technology,[2011]; Nyabiange,[2011]; Parhaland et.al,[2002];

Nettesheim, [2002]).

5.3.1.3 Security

145

Civil unrests cause a lot of property to be damaged. This

hinders the growth and penetration of this technology and

this was supported by substantial number of respondents in

the study concurring with Obijorfor et al, (2005) and Kessy

et al, (2000).

Computer security causes a lot of financial loss to

entrepreneurs and their customers. Sometimes even data of

great importance gets destroyed. Participants in the study

supported this idea concurring with past works ( Shahonya,

[2011]; Stallings, [2005]; Dafalla, [2011]; Wambugu, [2011];

Richmond, [2011]; Nyabiage, [2011]; Ekine, [2009]).

Lack of policies to regulate technology use poses a lot of

risks to ecommerce players. Without proper rules and

regulations if one gets legal injury then getting legal

redress becomes very difficult or impossible ( Obijiorfor et

al,2005). This scares people from using the technology. Many

respondents agreed to this proposition.

5.3.1.4 Societal issues

If used carelessly without responsibility, the technology

can cause moral decadence, which scare users and slows

penetration rate of the technology in the study area

(Universal Brouhaha, 2010). In this study respondents agree

with this reasoning. Corruption denies entrepreneurs means

of getting opportunities and services from various industry

146

players ( Kessy et al, 2006). This was supported by

respondents in this study.

Naturally people fear changes and effects of the unknown.

This discourages the use of technology and its penetration

(Mutambo, 2011). This is the same position held by most of

the respondents in the study.

5.3.1.5 Labour issues

Many people accept that this technology would easily render

a number of people jobless (Letiwa, 2011). Respondents in

this study were rather neutral on this matter; they never

accepted nor denied this proposition.

5.3.1.6 Health issues

Some publications have reported that the technology is

carcinogenic and would enhance chances of getting cancer

related illness among consumers of this technology. This has

been contradicted by other researchers. These unclear

sentiments discourage users of this technology hence

curtailing penetration of this technology in the study area

(Mobile phones, 2011). In this study respondents objected to

the idea that the technology is carcinogenic.

5.3.2 What is the relationship between investment in digitaland wireless communication technology and entrepreneurship development in Kisumu west district?

147

In the study it was found that increased investment in the

technology caused an increase in: the number of employees in

the technology sector, the value of educational material

obtained from the technology related devices, value of

health services extended to patients through telemedicine

practices, volume of sales, time saved in hours during

business transactions, returns from M-farming, number of

customers served from remote locations, value of commodities

which the use of technology saved from going stale, cost of

travelling saved, number of new friends created and

contacted frequently, cost saved on consultancy on matters

relating to poverty alleviation, cash saved from

misappropriation due to corrupt deals, number of people

contacted on leadership of various organizations and number

of decisions made.

The cost of paying bills decreased as the investment in the

technology increased. This lowers the expenses on the side

of the entrepreneur hence creating bigger profit margins for

them subsequently, encouraging the development of

entrepreneurship.

5.3.3 How can penetration and use of the technology be enhanced to promote entrepreneurship development in Kisumu west district?

5.3.3.1 Promoting penetration of digital and wireless communication technology

148

The study findings show that most respondents supported the

following as means of fostering penetration rate of the

technology in the study area: facilitating access to

electricity and ensuring that the same is in uninterrupted

supply, requesting multinational companies dealing in

computing devices to provide low cost items, eliminating

ignorance and popularizing the technology through campaigns,

formulating suitable policies to regulate the use of the

technology, establishing means of minimizing cyber crimes by

putting appropriate security features, encouraging research

and innovation to allow for localization of software,

initiating poverty alleviation projects and eliminating

engagement of expatriates and opting for locals in

maintenance and repairs of hardware.

Other suggested ways of enhancing penetration levels of the

technology were: zero rating taxes on computing devices and

providing good leadership practices to give improved

environment for entrepreneurs.

5.3.3.2 Best means of using digital and wireless communication technology to foster entrepreneurship development

From the study the following were supported as the best

means of using digital and wireless communication technology

to enhance entrepreneurship development: developing

versatile software to promote service delivery, using the

technology to create job opportunities, using technology in

149

imparting knowledge, using technology in attending to

patients from remote locations i.e. telemedicine, using the

technology to promote good governance practices, using

technology to help in finding better poverty alleviation

projects to initiate in various localities, using technology

in checking deliveries and stock, using technology to

eliminate unnecessary travelling costs, using the technology

to monitor traffic so as to ease congestion along our roads

and using the technology to promote social and economic

development.

Other best uses of the technology of the technology from

this study include: enhancing security practices, performing

activities that are considered dangerous to human beings,

promoting quicker decision making and creativity and

innovation among entrepreneurs.

5.4 Conclusions

Based on the summary of the findings above the researcher

made the following conclusions:

In the first place, regarding the subject of what is

responsible for low penetration levels of digital and

wireless communication technology, this is how the scenario

is: That penetration of the technology in the study area has

been hindered by lack of required infrastructure, inadequate

funding, poor computer security practices and civil unrests,

societal problems like corruption, and fears on health as

150

some publications had indicated that the technology is

carcinogenic to human beings. Labour issues regarding fear

of replacement of human work force with machines in this

study was never accepted nor rejected as a cause to low

penetration of the technology in the area. This made the

researcher to conclude that respondents were never decided

implying that in away it can lead to human labour or create

opportunity for human labor depending on the situation at

hand at any given time.

Secondly, on the issue of what the relationship between

investment in digital and wireless communication technology

and entrepreneurship development is , this is what the data

reveals; That there exists a positive relationship between

investment in digital and wireless communication technology

and entrepreneurship development; meaning an increase in

investment in the technology caused an increase in

entrepreneurship development. An increase in the investment

in technology caused a decrease in cost of paying for bills

incurred by various entrepreneurial activities. This can be

interpreted to be enhancing development in entrepreneurship

as the main aim of an entrepreneur is to maximize profits

and this creates bigger profit margins by lowering cost of

production.

Finally on the matter of how penetration and use of the

technology could be promoted to foster entrepreneurship

151

development, this is what the data produced; That the

technology penetration could be enhanced by facilitating

access to electricity and ensuring that the same is in

uninterrupted supply, requesting multinational companies

dealing in computing devices to provide low cost items,

eliminating ignorance and popularizing the technology

through campaigns, formulating suitable policies to regulate

the use of the technology, establishing means of minimizing

cyber crimes by putting appropriate security features,

encouraging research and innovation to allow for

localization of software, initiating poverty alleviation

projects and eliminating engagement of expatriates and

opting for locals in maintenance and repairs of hardware,

zero rating taxes on computing devices and providing good

leadership practices to give improved environment for

entrepreneurs.

It was also revealed clearly from the study that technology

use could be better utilized to promote entrepreneurship

development by : developing versatile software to promote

service delivery, using the technology to create job

opportunities, using technology in imparting knowledge,

using technology in attending to patients from remote

locations i.e. telemedicine, using the technology to promote

good governance practices, using technology to help in

finding better poverty alleviation projects to initiate in

various localities, using technology in checking deliveries

152

and stock, using technology to eliminate unnecessary

travelling costs, using the technology to monitor traffic so

as to ease congestion along our roads and using the

technology to promote social and economic development,

enhancing security practices, performing activities that are

considered dangerous to human beings, promoting quicker

decision making and creativity and innovation among

entrepreneurs.

5.5 Recommendations

The researcher made recommendations presented hereunder.

5.5.1 Policy makers and the government

That the government and concerned stakeholders in the

technology sector should put in place good infrastructure to

support the penetration of this technology. The

infrastructure includes electricity, roads, and broadcast

and telecommunication networks. Policies should be quickly

formulated and put into use to protect users of this

technology. This would encourage penetration levels of the

technology.

Funding and credit facilities should be extended to players

in the technology sector. The government should zero rate

taxes on computer related products and subsidize

establishment costs for those who are investing in the

153

technology to motivate them hence encourage penetration of

the technology.

Citizen should also be educated on the importance of

maintaining peace and how important it is in encouraging

development and penetration of the technology which is vital

for entrepreneurship development. The technology should be

used to promote good leadership and governance practices

while discouraging corrupt deals.

5.5.2 Entrepreneurs

Entrepreneurs and consumers of this technology should be

informed appropriately to appreciate the importance of this

technology and encourage them in using it in promoting moral

values in the society. They should be put to understand that

the technology is noble and that users are the ones misusing

it to promote moral decadence in the society.

Computer security practices should be enhanced and key

players in the industry enlightened on the need to secure

data and their systems to protect them against loses that

would hinder the use and penetration of the technology.

Entrepreneurs should inform Trade unions that the technology

is meant to improve efficiency and production but not to

eliminate human work force at various places of work.

Entrepreneurs and consumers should be told that the

technology is not carcinogenic and with good use can be put

154

to solve health problems. Non- factual statements that are

meant to undermine the benefits of this technology should be

discouraged by entrepreneurs.

5.2.3. Software developers

It is recommended to software developers to come up with

more versatile software that would allow for commercial

transactions in a secure manner.

Generally investment in the technology should be increased

as increase in investment in the technology translates to

increased entrepreneurship development. Increased

entrepreneurial activities cause economic development of a

country and sot his should be supported by the government

and relevant stakeholders. Best practices involving the use

of technology should be used to spur development in

entrepreneurship.

5.6 Recommendations for further studies

This report makes recommendations for further studies in the

following area:

I). Effect of digital and wireless communication on the

purchasing behavior of youthful entrepreneurs in Kenya

2). Examine how development affects various factors of

production with a view to promoting entrepreneurship for

economic growth in Kisumu county.

155

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APPENDICES

WORK PLAN/ TIME TABLEThe study was conducted according to the time table shown below.

TIME IN SEPT,201 OCT,201 NOV, JAN FEB MARCH APRIL MAY

167

MONTHS 1 1 2011 ,

201

2

,

201

2

2012 ,

2012

,20

12

ACTIVITY


Key

Drafting research proposal and Testing data collection instruments

Visiting the area of research anddistributing collection

instrumentsCollecting research instruments from respondents and analyzing data from thefield

Presenting the research

report

168

THE BUDGET FOR THE STUDYThis budget was used in the study to finance it properly

without a hitch.

Table 52: Budget

ITEM COST IN KSHFlash disk 4000Secretarial services 18000Reprographic services 6000Transport 12000Meals during study 8000Motivation to respondents 11400Telephone 9000Miscellaneous Costs 4360TOTAL 72760Source: Author, 2012

169

QUESTIONNAIREThis study is a requirement as part fulfillment for the

conferment of Masters of Science Degree in Digital and

wireless communication. The researcher therefore requests

that you fill this questionnaire honestly for the purpose of

attaining workable results. Data will be handled with great

responsibility and the researcher will whatsoever not cause

ethical or legal injury to participants.

Kindly tick your answers as appropriate

PART A

1. Is electricity in adequate supply enough to encourage the

use and penetration of digital and wireless communication in

the county?

170

Strongly agree………..Agree……….Undecided……. Disagree……Strongly

disagree……..

2. Is your business area supplied with good broadcast and

telecommunication facilities so as to support the use and

penetration of digital and wireless communication?


disagree……..

3. Are there good transport networks in your place of

operation to spur faster penetration of the technology in

the County?


disagree……..

4. Has the government been giving enough financial

assistance to support the high penetration rates and use of

digital and wireless communication in the county?


disagree……..

171

5. Have other stakeholders been giving adequate credit

facilities to encourage the use and penetration of digital

and wireless communication technology?


disagree……..

6: Do you accept that security issues are among the many

other things which are hampering the, would be rapid

penetration and use of the technology?


disagree……..

7. Do you agree that civil unrests have caused the slow

penetration rate of the technology in the county?


disagree……..

8. Is it true to say that many people fear change and are

resisting the use hence penetration of this technology?


disagree……..

172

9. Is it true to say political leaders are very slow in

formulating policies to regulate the use of the technology

hence, causing fear to adopt and foster the penetration of

the technology among residence of the county?


disagree……..

10. Is corruption responsible for poor telecommunication

network in the county and so causing slow penetration of the

technology?


disagree……..

11. Do you believe that the technology is carcinogenic to

human beings thereby causing its slow penetration?


disagree……..

12. Do you believe that once people get to use this

technology then persons working in such fields shall be

rendered jobless and some trade unions are advocating

against the use of digital and wireless communication

technology?173


disagree……..

13. Do you accept that high taxation by the government is a

threat to penetration and subsequent use of this technology?


disagree……..

14. Do you accept that some persons feel that the technology

is highly responsible for moral decadence in our society;

that its use should be discouraged hence causing its low

penetration in the county?


disagree……..

15. Is the high cost of hardware and software a hindrance to

penetration of the technology in the county?


disagree……..

PART B

This section is meant to enable the researcher to determine

and explain the relationship between the investment in

174

digital and wireless communication and development in

entrepreneurship in the research area. Kindly take your time

and give approximates as appropriate. Some sections are to

be filled by specified persons. Kindly take note of this.

1. Give an estimate of your investment in the technologyagainst the number of employees engaged as appropriate.

Investment value in KSH No. of employees involved12345

2. Kindly give estimate value of educational material obtainedthrough this technology in relation to the value of investment in

the technology at the time.

Investment value in KSH Value of educational material

obtained500010000150002000025000

175

3. Estimate the value of health services extended to your

customers while using this technology corresponding to

approximate value of your in the technology (Health workers)

Investment value in KSH Value of service in KSH500010000150002000025000

4. Estimate the volume of your sales through the technology

corresponding to the appropriate values of your investment

in digital and wireless communication technology.

Investment value in KSH Volume of sales in KSH500010000150002000025000

5. Estimate the time saved in terms of hours corresponding to

your investment in the technology i.e. at a certain value of

investment, how much in terms of time were you able to save in

the course of your business dealings?

Investment value in KSH Time saved in hours

176

500010000150002000025000

6. Make an estimate value of your yields from your farm

against your investment in the technology. (For those

engaged in M-farming)

Investment value in KSH Returns in KSH5000100001500020000250007. Give an estimate number of customers reached using the

technology against investment in the technology.

Investment value in KSH Number of customers500010000150002000025000

177

8. Give an estimate value of goods you were able to detect

their expiry date using the technology and the value at the

time (Health workers and sellers of edible commodities).

Investment value in KSH Value of goods that

technology was used to detect

their expiry date5000100001500020000250009. State how much was saved in terms of travelling cost when the

cost of investment was as indicated

Investment value in KSH Cost of travelling saved500010000150002000025000

10. State how many friends you created when the cost of your

investment was as follows.

Investment value in KSH Number of friends contacted/

created5000

178

10000150002000025000

11. Give an estimate value of savings on consultancy charges

on poverty alleviation projects that you have managed to get

while using this technology and corresponding investment at

the time. (Community based organizations)

Investment value in KSH Savings on consultancy500010000150002000025000

12. Give an estimate value of cash that the technology has

ever helped you to save from misappropriation (if any) and the

corresponding value of investment in the technology at the said

time.

Investment value in KSH Cash that would have been

lost5000

179

10000150002000025000

13. Give an estimate number of people you have ever talked

about leadership of an organization through the technology

and the corresponding value of your investment in the

technology at the time.

Investment value in KSH Number of people contacted500010000150002000025000

14. Give an estimate number of decisions made after applying

the technology to search for suitable decisions against your

investment in the said technology.

180

Investment value in KSH Number of decisions made500010000150002000025000

15. What was your cost of paying your bills compared to your

investment in the technology? (The cost here excludes the bill

itself).

Investment value in KSH Cost of paying bills500010000150002000025000

SECTION C

This section is to help the researcher find best means of

using digital and wireless communication technology to

foster entrepreneurship development. Kindly put a tick as

appropriate.

181

Do you believe that:

1. Causing software to be versatile to do arrange of

activities e.g. sending money, withdraw, apply and receive

loans and other transactions would help in developing

entrepreneurship in the district?


disagree……..

2. In cooperating to address health issues shall foster

entrepreneurship growth in the district?


disagree……..

3. Using technology to disseminate knowledge shall enhance

development of entrepreneurship in the district?


disagree……..

4. Using the technology in carrying out market research can

promote growth in entrepreneurship in the district?


disagree……..

5. Using the technology to enhance security consequently

fosters development in entrepreneurship?

182


disagree……

6. Using technology to monitor leadership personalities

enhances entrepreneurship growth?


disagree……

7. Using technology to perform operations that would be

dangerous to human beings would promote production and

entrepreneurship development?


disagree……

8. The technology can be used to reinforce social fabrics of

the society through social sites and hence promote

entrepreneurship as entrepreneurs are members of the society

and cannot live in isolation?


disagree……

9. Using the technology can be used to strengthen the bond

between customers and those who sell to them commodities?

183


disagree……

10. The technology can be used to bring close services to

the people so as to encourage business potential and

eliminate unnecessary delays?


disagree……

11. Using technology to collect revenue from customers would

eliminate corruption and enhance service delivery to its

citizen entrepreneurs inclusive?


disagree……

12. Using technology would create jobs hence helping

potential entrepreneurs to accumulate capital required for

their intended businesses?


disagree……

184

13. The technology would be used to monitor our roads and

ease congestion in the roads hence facilitating movement of

goods and services?


disagree……

14. Technology can be used to promote creativity and

innovation to help in solving various problems?


disagree……

15. The technology would be used to facilitate quicker

decision making, healthy for entrepreneurs?


disagree……

185

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