Abstract:
Foreign Direct Investment (FDI) is seen as a key driver of economic growth and
development. This is because of the multiple benefits it has in developing countries.
Some of the benefits include technology transfer, increases competition in the host
country industries and aids local firms to become more productive. Kenya has its share
of FDI from various parts of the world, with China on the lead with a continued growth
from early year 2000. According to data published by the Ministry of Commerce,
outbound FDI by Chinese enterprises amounted to $43.3 billion in 2009. This study
sought to identify the role that foreign direct investors play in enhancing
entrepreneurship growth in Kenya by creating entrepreneurial intention among the
Kenyan employees. The study adopted a descriptive and correlational research design
and generated both qualitative and quantitative data. It targeted the FDIs located within
Nairobi only. A sample of 235 employees was selected using a multistage sampling
technique. Data was collected by use of a questionnaire and analyzed by use of the
SPSS while the ANOVA was used to analyze the degree of relationship among the
variables. The findings revealed that role modelling, skills and experience, technology
transfer, enterprise linkages and capital, combined, had a significant relationship with
entrepreneurial intentions, leading to entrepreneurship growth. The study therefore
concluded that FDIs avail the necessary exogenous factors that enhance entrepreneurial
intentions among their Kenyan employees. The study recommends that FDIs should
expose their Kenyan employees more to facilitate entrepreneurial intentions.
