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Boda Boda Business and Youth Empowerment in Kenya, a Case of Boda Boda Operators in Chuka Municipality

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Boda Boda Business and Youth Empowerment in Kenya, a Case of Boda Boda Operators in Chuka Municipality BODA BODA BUSINESS AND YOUTH EMPOWERMENT IN KENYA, A CASE OF BODA BODA OPERATORS IN CHUKA MUNICIPALITY BOSCO MURITHI NTHIIRI A RESEARCH PROJECTSUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF BACHELOR OF MANAGEMENT AND LEADERSHIP (BUSINESS ADMINISTRATION OPTION) OF THE MANAGEMENT UNIVERSITY OF AFRICA SEPTEMBER, 2018 i DECLARATION ii DEDICATON This research project is dedicated to my dear family for the great support throughout my study period. iii ACKNOWLEDGMENT I wish to thank my God for giving me health, wisdom and patience from the time I stated the proposal section up to the completion of the project. Many thanks to my supervisor Dr. Peter Kithae for his guidance during the research project writing .My sincere gratitude goes to my workmates for moral and financial support they offered me throughout the course and to my class colleagues for their moral support and encouragement .Many entrepreneurs also provided great help in making available information that appears in text and supplements- much of it for the first time in college material. Finally I acknowledge the staff and lectures of the Management University of East Africa for their professional support towards completion of this great work. iv ABSTRACT Bodaboda business in Kenya is one of the most popular industry in providing informal self- employment and source of income for many unemployed youth, by offering the basic mode of transportation in both rural and urban areas.Conversely, young people especially the youth who have completed schooling in many parts of country, remain unemployed influencing them to seek for alternative employment in boda boda enterprises as a way of self- employment. Although the youth form the largest work force in Chuka Municipality, there has been no tangible report on their operations and how Bodaboda has empowered the youth a gap that this study intended to fill.The study adopted a descriptive research survey design because the design deals with the situations the way they are without manipulating the variables. The target population for this study was approximate 260 youths, 15youth groups 5 Sacco‟s and 4 micro lending financial organizations in Chuka Municipality. The study used the simple random and systematic sampling procedures to get 106 respondents from all the clusters. The study usedan interview schedule for bodaboda operators as data collection instruments. A pilot study was conducted in the neighbouring Chogoria Municipality which had a similar characteristics like those of Chuka Municipality using 20 subject which was 30% of our sample size. The purpose for the pilot study was to ascertain the content validity and reliability of research instruments. The interview schedule had both open-ended and closed ended questions covering all the study objectives to give room for diverse opinions. Both qualitative and quantitative questions were used as per study variables. Before data analysis theinterview schedule questionswere inspected for any error and omissions, and then coded and entered into the computer for analysis using software Statistical Package for Social Sciences (SPSS) version 21. The results were presented using tables and graphical illustrations. The study established that Boda boda Sacco‟s was embraced around Chuka Municipality and it was a very popular because many boda boda operators have been members of these Saccos for the last 3 years. Few Boda boda operators were also operating using their own motorcycles. Majority of boda boda operators wholly depended on the business as source of income. One earnings per day majority went home with between Kshs 300-500. However, majority had ability to meet basic needs increasing after they engaged in the BodaBoda business. On saving mobilization, boda boda operators made their savings in SACCOs while less than a half deposited their savings in commercial banks. SACCO officials also gave advice to the youth in regard to regular savings, borrowing wisely and paying promptly. Majority of boda boda operators started their business through their own savings. This shows that either boda boda operators were not aware of avenues for obtaining venture capital or finance institutions were sceptical in advancing risk capital to youth. Also half of boda boda operators saved the amount that a person was willing to save whereas others saved according to their strength but not the set targets. It was still difficult for some of the operators to access credit facilities from financial institutions and this may be as a result of the inconsistent saving patterns of some of the operators. Majority of Boda boda operators in Chuka Municipality were not at all aware of savings products on offer by various Sacco‟s. Only a small percentage of respondents were aware of savings products on offer by various Sacco‟s. On challenges facing boda boda operations, capital availability was a challenge. The study recommends that the Bodaboda Saccos operators should come up with self-projects to support the Sacco in its challenges to meet the targets of the Sacco. The Chuka Municipality should increase its support to the Bodaboda Saccos by giving grants. The Bodaboda Saccos should be sensitized by the Cooperative Ministry to understand the cooperative way of doing business. The Sacco leaders should advance on project management skills through attending workshops and seminars. They should benchmarking from those Saccos with similar challenges and improve on their weaknesses. The researcher suggests thata similar study should be carried in different Municipalities to see if the findings will concur. v TABLE OF CONTENTS Page DECLARATION...................................................................................................................... ii DEDICATON ......................................................................................................................... iii ACKNOWLEDGMENT ........................................................................................................ iv ABSTRACT .............................................................................................................................. v TABLE OF CONTENTS ....................................................................................................... vi LIST OF FIGURES ................................................................................................................. x ABREVIATION AND ACRONYMNS ................................................................................. xi DEFINITION OF KEY TERMS .......................................................................................... xii CHAPTER ONE:INTRODUCTION ..................................................................................... 1 1.1Background of the study ....................................................................................................... 1 1.2Statement of the Problem ...................................................................................................... 6 1.3 Objective of the study ......................................................................................................... 7 1.4Research Question ................................................................................................................ 7 1.5Justification of the Study ...................................................................................................... 7 1.6Scope of the Study ................................................................................................................ 8 1.7Limitation of the Study ......................................................................................................... 8 CHAPTER TWO:LITERATURE REVIEW ........................................................................ 9 2.1 Introduction .......................................................................................................................... 9 2.2 Theoretical Review .............................................................................................................. 9 2.2.1 Entrepreneurial Orientation Dimensions Theory ...................................................... 9 2.2.2 Innovative Enterprise Theory .................................................................................. 10 2.2.3 Theory of Human Resource and Organizational Outcomes .................................... 11 2.2.3 Concept of Boda boda Business on Youth Empowerment...................................... 11 vi 2.3 Empirical Review............................................................................................................... 14 2.3.1 Boda Boda Business on youth empowerment in Chuka Municipality .................... 14 2.3.2 Savings Mobilization and youth empowerment in Chuka Municipality ................. 17 2.3.3 Sacco Formation and youth empowerment in Chuka Municipality ........................ 19 2.4 Critique of Existing Literature ........................................................................................... 21 2.5 Chapter Summary .............................................................................................................. 21 2.6 Research Gaps .................................................................................................................... 22 2.7 A Conceptual Framework .................................................................................................. 23 CHAPTER THREE:METHODOLOGY ............................................................................ 25 3.0 Introduction
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