Influence of Entrepreneurial Tendencies on Uptake of Access to Government Procurement Opportunities by the Youth A Study of ISIOLO County, Kenya

Access to Government Procurement Opportunities (AGPO) is an initiative by the Kenyan Government to empower the Youth, Women and Persons With Disabilities (PWDs) through preferential treatment while seeking Government Procurement Opportunities. The aim of the AGPO initiative is to facilitate the enterprises owned by Youth, Women and PWDs to participate and benefit from at least thirty percent (30%) of the Government tenders. However, considering the numerous challenges experienced, the determinants of this initiative and how they influence the uptake of this opportunity is not clear and hence this study while narrowing on the independent parameters of Entrepreneurial Tendencies sought to correlate with the dependent variable which was the Uptake of AGPO. Using the descriptive research design with inferential statistics as tools of analysis, and with a sample of 55 respondents drawn from the Three (3) Sub-Counties, namely; Isiolo, Garbatulla, and Merti, all in Isiolo County in Kenya. The researchers correlated the independent variable with the dependent variable. The study found that Entrepreneurial Tendencies had a moderate positive correlation with the Uptake of AGPO, as it was established that the youth were able to seek and exploit opportunities and had high propensity to undertake risks. The study recommends that the County Government of Isiolo and other agencies such as development partners should come up with new initiatives on ways of inculcating an entrepreneurial culture and assist the youth to be innovative through development of new products and provision of services.


Conceptual Framework
The study conceptualized that Entrepreneurial Tendencies influence the Uptake of AGPO. The relationship is shown in Figure 1.

Literature Review Theoretical Framework
The theory employed in this study was Hagen's Theory of Entrepreneurship. This theory of entrepreneurial behavior was propounded by Hagen Everett (Deakins & Freel, 2009).It is also referred to as the Withdrawal of Status Respect Theory. Hagen attributed the withdrawal of status respect of a group to the genesis of entrepreneurship. That the withdrawal acts as a trigger mechanism for changes in personality formation. Status withdrawal occurs when members of a certain group or party perceive that their purpose, goals, values and aspirations are not respected and considered to be important by another group that the subjects hold with high esteem and they also respect. One group perceives that the other group is not reciprocating the initiatives that the other group is providing. Hagen advanced that this perception could trigger various reactions and create different personality traits such as; Retreatist where the entrepreneur will continue to perform the day to day duties but remain indifferent to his work or status; Ritualist, meaning that the entrepreneurs works as per the norms in the society but has no hope of improving the business performance or the current status; Reformist are rebellious and will always try to bring in new ways of working and a new community and lastly are the Innovators who are creative and try to achieve their set goals.
For the Youth to regain the lost prestige and glory, it is imperative for them to become more active and aggressive thereby giving rise to many entrepreneurs in the society. Hagen's theory was supported by David McClelland who admitted that a suppressed community or group will always exhibit creative Entrepreneurial Tendencies in business undertakings.
• Level of Innovation • Pro-activeness • Propensity to Take Risk

Entrepreneurial Tendencies
McClelland stated that the behavior of such groups could arouse achievement in its members but its extent depended upon the initial level of incentive and the means available to the groups to realize its achievement motivation. Hagen sees the entrepreneur as a creative problem solver interested in things in the practical and technological realm and driven by a duty to achieve. The theory was found relevant in this study as it helped to explain the variables; Entrepreneurial Tendencies and Uptake of AGPO by the Youth.

Empirical Review of Literature
A huge body of literature exists which examine various determinants of the utilization of AGPO by the target group. In Kenya, AGPO is an affirmative action intended to empower Youth, Women and PWDs, by setting aside thirty percent (30%) of all public procurement in Kenya for the targeted group (PPADA, 2015).The AGPO initiative is founded in the COK, 2010, article 227 on the fair, equitable, transparent and cost-effective public procurement of goods and services, article 55 on affirmative action and the PPADA, 2015.
A study conducted by (Nkonge et al. 2013) in Thika on challenges facing Small and Medium Enterprise (SMEs) Suppliers when bidding for Government tenders, established that the existence of the legal framework makes it difficult for upcoming SMEs to compete with the established firms in the market. This acted as a discouragement for SMEs to participate in the public procurement. A similar study conducted by International Trade Centre (ITC) in 2014 on challenges that face women and youth in Developed and Developing economies in Government procurement, found out that lack of information about tender opportunities, overly complex and burdensome tender procedures, and failure by those agencies to promptly pay women-based businesses influenced uptake of AGPO by the targeted groups. According to UN Women Report of 2006, women entrepreneurs face many challenges when participating in public procurement which include; Government rules and regulations, lack of access to finance, assets, information technology, infrastructure and other facilities that enable their efficiency and business growth. Nduta et al. (2015) undertook a study with the main objective to determine factors affecting youth participation in public procurement in Mombasa County. The study documented that, lack of awareness on compliance, lack of effective regulations and financial availability influenced participation of the youth in the public procurement. Mwangi (2017) carried out a study to determine Compliance of AGPO regulations for Women, Youth and PWDs by Public Universities in Kenya. The research findings revealed that prequalification criteria negatively contributed to the level of compliance with AGPO. The study further revealed that elaborate selection procedures lead to a higher level of compliance with AGPO for special groups in Kenya. A study carried out by Wleh (2013) to establish factors that influenced the youth uptake of Government Procurement Opportunities in Ministries concluded that access to information, finance, legal framework and ethics in procurement influenced Uptake of AGPO by the youth. Ngugi and Mugo (2007) in a similar study on an examination of procurement activities on the operation and effectiveness of Ministries in Kenya, established that there was need for procurement activities to be carried out by qualified staff with high professional and ethical standards, using sound procedures anchored on appropriate policies and regulations.

Entrepreneurial Tendencies and Uptake of AGPO
Entrepreneurial Tendencies refers to multidimensional concepts that are useful at the organizational or entrepreneur's level, which exemplifies entrepreneur's or firms entrepreneurial actions and includes one or several of these magnitudes: Innovativeness, Pro-activeness and Risk-Taking Propensity. (Irungu, 2008: Lumpkin andDess, 1996;Nyambariga, 2012).When Young people exhibit such Entrepreneurial Alignment, they get inclined to participate in business activities including AGPO. One approach to enhancing entrepreneurial activity and enterprise growth in Kenya is to create an entrepreneurial culture among the youth (Nelson & Mburugu, 1991;Gibb, 2000).The Entrepreneurial Propensities discussed in this study that explained the reasons behind the uptake of AGPO among the Young included:

Level of Innovation
Joseph Schumpeter is credited for being amongst the first scholars to emphasize the role of innovation in the entrepreneurial process which entails interrogating the status quo within the business environment. He stressed on the critical role of an entrepreneur as an innovator who implements change in an economy by introducing new goods or new methods of production. In the Schumpeterian view, any entrepreneur including young people are disruptive forces in any economy playing the role of engaging in the beneficial process of creative destruction in which the introduction of new products results in the obsolescence or failure of others (Mwaura et al., 2015). When the youth engross in innovative activities they are able to create wealth through the introduction of new goods or services, re-allocating resources from existing firms to new firms and growth.
According to (Lumpkin & Dess, 1996), "innovativeness reflects a tendency for an enterprise "to engage in and support new ideas, novelty, experimentation, and creative processes that may result in new products, services, or technological processes". Innovation is an important means of pursuing opportunities including AGPO and so is an important component of Entrepreneurial Orientation that the youth should harness to remain vibrant in the field of business (Lumpkin & Dess, 1996).

Pro-activeness
Pro-activeness is another entrepreneurial characteristic critical for the youth to engage in business with the Government. Pro-activeness is related to initiative and first-mover advantages and to "taking initiative by anticipating and pursuing new opportunities" (Lumpkin & Dess, 1996). The Oxford Dictionary defines Pro-activeness as "acting in anticipation of future problems, needs, or changes". Lumpkin and Dess (1996) argued that Pro-activeness may be essential because it suggests a forward-looking perspective that is accompanied by innovation and entrepreneurial activity. Proactiveness relates to taking advantage of market prospects in entrepreneurship by "seizing the available initiative and acting opportunistically in order to shape the environment, that is, to influence trends and, perhaps, even to create the demand". The characteristics of a Pro-active youth involve assertiveness and progressive tactics towards rival enterprises in the same market segment, such enterprises shape their environments by actively seeking and exploiting opportunities. Proactive firms introduce new products, technologies, administrative techniques to shape their environment and not react to it (Callaghan, 2009).

Risk-Taking Propensity
Richard Cantillon, a French Classical economist and businessman, in his essay on the "Nature of Commerce", defined entrepreneurship as a risk bearing function, which entails having a foresight and willingness to assume risk and take the action required to make a profit. The Youth in Kenya to effectively utilize AGPO approaches, calls for the need to accelerate the importance of understanding the concept of risk taking characteristic. This entails having the willingness to become bearers of uncertainties while engaging in AGPO initiatives. Risk-taking relates to a business readiness to pursue opportunities despite uncertainty around the eventual success (Deakins & Freel, 2012). It necessitates acting boldly without knowing the consequences of risk-taking, it is the firm knowingly devoting the resources to projects with chances of high returns but may also entail a possibility of higher failure (Mahmoud & Hanafi, 2013). There are three (3) categories of individuals in terms of analyzing their propensity to take a risk, i.e. risk-takers, risk-neutral and risk-averse. Effective and efficient entrepreneurs undertake moderate, calculated and rational risks. The high propensity to undertake risks have also been associated with higher performance by individuals. (Deakins & Freel, 2012;Callaghan, (2009). Lumpkin and Dess (1996), "identified three (3) types of risks that businesses face in pursuing entrepreneurial activities"; Business's Risks associated with entering new markets or supporting unproven technologies; Financial Risks relating to the financial exposure required and the risk/return profile of the new venture. It may include borrowing heavily or obligating large proportions of their resources and Personal Risks referring to the repute effects of success or failure in the business. Drucker argued that entrepreneurs are not typically risk seekers rather, like any other rational individuals, they take steps to minimize risks, and this may involve developing strategies that entail a higher acceptance for risk, but also the calculation of risks.

The Research Gap
In summary, most of the studies reviewed showed that; access to information, access to finance, Legal and Regulatory Framework, ethics in procurement, are key determinants of AGPO by the youth. The existing body of knowledge was not sufficient to show the influence of the independent variable; Entrepreneurial tendencies and the dependent variable Uptake of AGPO initiatives by Youth in Kenya. The literature reviewed generally outlined the external environmental factors influencing participation of youth in government business opportunities. The literature laid little emphasis on the internal intrinsic dynamics such as inculcation of entrepreneurial spirit and how it imparted on the behavior of the Youth in operating entrepreneurial ventures. This study sought to fill the research gap by exploring the influence of Entrepreneurial Tendencies on Uptake of AGPO among the Youth in Isiolo County.

Research Methodology
The purpose of this study was to determine the influence of Entrepreneurial Tendencies on Uptake of AGPO. To realize this, the study undertook a descriptive survey design. The study population targeted the Three (3) Sub-Counties, namely ; Isiolo, Garbatulla, and Merti in Isiolo County in Kenya. The target group constituted 55 Youth from Isiolo County that were attending a Course at the Kenya School of Government, Embu Campus.
The study used questionnaires to collect data. The questionnaire had closed-ended and open-ended questions. The closed-ended questions made use of a five-point Likert scale where respondents were required to fill according to their level of agreement with the statements. Many researchers prefer to use a Likert-type scale because it's very easy to analyze statistically (Jackson, 2009). Descriptive statistics such as frequencies and percentages were used to analyze the data. Pearson correlation coefficient was used to measure the strength and direction of the relationship between the dependent variable and independent variable. Correlation technique allowed the researchers to analyze the degree and direction of the relationship between the dependent variable and the independent variable.

Operationalization of the Study Variables
The responses in the questionnaire were rated on a scale of 1-5, where 1 represented strongly disagree and 5, strongly agree.

Interpretation of the Correlation Coefficients of the Study Variable Hoi: ρi =0 versus Hoi: ρi ≠ 0
If the hypothesis is rejected then the Independent Variable Xi had a statistically significant relationship or association with the dependent variable Y (Chen & Popovich, 2002). The decision to reject or fail to reject the Null Hypothesis was based on the statistical significance of the correlation coefficients (p ≤ 0.05).

Research Findings and Discussions
This section reports the findings of the study. It begins with the respondents' response rate, the respondents' demography, descriptive analysis of the study variables using proportions and culminates with the inferential statistics of the study variables using the Pearson's correlation coefficient r.

Respondents Demography Respondents Gender
From Table 3 and Figure 2 sixty-seven percent (67%) of the respondents were male and thirty-three percent (33%) were female.

Age of Respondents
From Figure 3 seventy-three percent (73%) of the respondents were between 20-29 years and twenty-seven percent (27%) were between 30-39 years.

The proportion of Respondents with Businesses
From Table 5 and Figure 5 forty-four percent (44%) of the respondents owned some form of business while fifty-six percent (56%) did not own a business.

Type of Business Ownership
From Table 6 and Figure 6, sixty-two percent (62%) had sole proprietorship type of business, twentyseven percent (27%) had partnerships and eleven percent (11%) had limited companies. Table 6 From Table 7 sixty-seven percent (67%) owned a business and were sole proprietors. Twenty-one percent (21%) owned partnerships, whilst twelve percent (12%) did own a business but were in Limited Companies. Twenty-nine percent (29%) did not own a business but were in partnerships.

Descriptive Statistics of the Study Variables Entrepreneurial Tendencies and Uptake of AGPO by the Youth in Isiolo County
From Table 8, fifty-five percent (55%) agreed that they engaged in high-risk activities hence a high propensity to undertake risks. These findings are in tandem with the works of Kuratko & Hodgettes, 2007 that Risk-taking is frequently associated with entrepreneurial performance and the general successful entrepreneurs are risk-takers.Eighty-five percent (85%) agreed that they aggressively pursued and exploited business opportunities implying that they possessed Pro-activeness which is an entrepreneurial orientation dimension. The findings of this study agree with scholarly works of (Callaghan, 2009) that Proactive firms introduce new products, technologies, administrative techniques to shape their environment and not react to it. Fifty-two percent (52%) disagreed on having new products and services all the time. Seventy-nine percent (79%) agreed that they do have opportunities to learn new ideas meaning they had strong desire to be creative and innovative. Fifty percent (50%) agreed that as entrepreneurs, they are rarely in control of their life. Ninety-three percent (93%) agreed that they were very certain on the decisions they make concerning the future. Seventy-four percent (74%) agreed that they rarely anticipate future wants and needs in the market. Eighty-four percent (84%) agreed that they always respond to what the competitors bring in the market.

Conclusion and Recommendations Conclusion
The study established that, fifty-two percent (52%) disagreed on having new products and services all the time hence the need to embrace innovation and creativity in businesses. Mwaura et al., (2015) espoused that among the critical characteristic of an entrepreneur involves exhibition of innovative predispositions and implementation of change in an economy by introducing new goods or new methods of production. The study established that seventy four percent (74%) of the respondents rarely anticipate future wants and needs in the market hence the need for the youth to be Pro-active. Lumpkin and Dess, (1996) considered Pro-activeness as a prerequisite which was associated with initiative and firstmover advantages and to "taking initiative by anticipating and pursuing new opportunities". The study concluded that Entrepreneurial Tendencies had a moderate positive correlation with the Uptake of AGPO, as it was observed that fifty five percent (55%) of the respondents had a High Propensity to undertake Risks. The findings are in congruence with the works of Mahmoud and Hanafi, (2013) that risk-taking necessitates acting boldly without knowing the consequences of any business actions. It encompasses a firm knowingly devoting the resources to projects with chances of high returns but may also compel a possibility of higher failure. It was also established that fifty-six percent (56%) of the respondents did not own a business. This is an indication that 31 out of 55 respondents could not participate in AGPO initiative. The study concurs with the scholarly works of Gibbs that one approach of enhancing entrepreneurial activity and enterprise growth in Kenya is to create an entrepreneurial culture among the young through training and socialisation process (Nelson & Mburugu, 1991;Gibb, 2000).

Recommendations
From the findings, the study recommends that the National Government and County Government of Isiolo together with other agencies such as Kenya School of Government and Development Partners should devise AGPO intervention strategies on ways of inculcating entrepreneurial culture among the youth through: 1. Capacity building Programs 2. Coaching and Mentorship Programs 3. Promoting Business Incubation Programs 4. Provide a conducive Legal and Regulatory Framework 5. Strengthen provision of seed capital among the youth to promote business Start Ups These recommendations shall expedite the youth entrepreneurs in change of attitudes and mind sets, grow their business skills, and compete favourably in the Government business initiatives and attainment of Global, Regional and National Development Agendas.