Influence of Foreign Direct Investment on Entrepreneurship Growth Among The Kenyan Employees Lucy Mwendwa Kinyua A Thesis Submitted in Partial Fulfillment for the Degree of Doctor of Philosophy in Entrepreneurship in the Jomo Kenyatta University of Agriculture and Technology 2014

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.