The Effect of External Business Environment on the Level of Entrepreneurial Commitment in Nairobi’s Urban Public Transport Industry. A Survey Study of General Motors Isuzu Bus Entrepreneurs

A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirements for the Degree of Masters of Business Administration (MBA)The general objective of the study was to analyze the effect of external business environment on the level of entrepreneurial commitment in Nairobi’s public transport industry, a survey study of General Motors Isuzu bus entrepreneurs. The study was guided by the following specific objectives. First to determine the influence of the level of entrepreneurial commitment on their success in the Matatu industry. Secondly, to determine the impact of financial freedom in Kenya on the commitment of entrepreneurs in the Matatu industry. Thirdly, to determine the impact of business freedom on the commitment of entrepreneurs in the Matatu industry. Finally, to determine the impact of investment freedom in Kenya on the commitment of entrepreneurs in the Matatu industry. The research used descriptive research design and carried out a survey among General Motors’ Isuzu bus entrepreneurs by use of structured questionnaires. The study targeted 33 seater minibus customers with an estimated population of about 137 respondents. The researcher used probability sampling, specifically stratified random sampling. The sample size for the study was 82 respondents. The study found a strong correlation between entrepreneurial commitment and success in the Matatu industry. However, although the empirical tests did not show a strong correlation between the explanatory variables of financial freedom, business freedom and investment freedom, it was contracted by the literature review. Most of the factors underlying entrepreneurial commitment showed a positive correlation with business success in the Matatu industry. According to the study, Kenya scores moderately well on average for all the indicators of entrepreneurial commitment but many of the entrepreneurs have yet to find better alternatives to leave the Matatu industry. The study concluded that there is a strong correlation between the active engagement by entrepreneurs and their commitment to the Matatu industry. It also concluded that there is a strong correlation between the availability of funds and investment level which ultimately affects the level of commitment of entrepreneurs. The study further concluded that business freedom is heavily affected by the regulatory environment and capital requirements of the entrepreneurs which affects their commitment. The study recommended greater stakeholder engagement initiatives coordinated by the Government of Kenya; more customised credit solutions for the sector; better networking opportunities for entrepreneurs in the sector; and more scholarship in the field of entrepreneurial commitment in Kenya