Entrepreneurial Factors Influencing Freight Transport Firms’performance in Mombasa County, Kenya

Abstract

Entrepreneurial factors were the drivers of economic development in the world. Mombasa County is bestowed with unique strategic advantages and opportunities namely: -a gateway to landlocked countries, a sea port, an airport, road and railway terminuses, development corridor within and through the country and a coastline with major shipping and transportation sectors. The Kenya government (GoK) implemented the vision 2030 by investing heavily in infrastructure development so as to achieve interconnectedness and World Class infrastructure. Mombasa County being the gateway was a beneficiary of the development agenda taking place in the country. The study evaluated the following entrepreneurial factors; innovation of transport technology, government transport policy, infrastructure development at the sea port of Mombasa, and acquisition of entrepreneurship knowledge and skills to show how they influenced the freight transport firms’ performance. However, there are other several entrepreneurial factors. The factors in Mombasa County were undergoing structural change. The circular flow of data was affected and disturbed the static or equilibrium economic system of the County. It brought in new combinations that resulted in gainers and losers. The specific objectives were; to assess the effects of innovation of transport technology on to examine the effects of government policy on the freight transport firms’ performance, to evaluate the effects of infrastructure development at the sea port of Mombasa on the freight transport firms’ performance and to determine the effects of entrepreneurship knowledge and skills on the freight transport firms’ performance. The study adopted a survey research design. The population was managing Directors of freight transport firms. Stratified sampling technique was applied. The transport firms were divided into groups forming the strata. Random samples were taken from each stratum in the proportion that each stratum bore to the population. Data was collected through questionnaires and analyzed through descriptive and inferential statistics. Regression analysis, coefficient analysis and ANOVA were used to examine the influence of entrepreneurial factors on freight transport firms’ performance. The research study results showed that innovation of transport technology, infrastructure development at the Sea port of Mombasa and government policy had significant negative effect on freight transport firms’ performance whereas the fourth factor entrepreneurship knowledge and skills had a positive effect. In conclusion the entrepreneurial factors studied had a significant effect on the freight transport firms’ performance in Mombasa County. Other factors not in the study had an insignificant effect. In view of the above model the management of the freight transport firms should develop good mechanisms to align their business operations with the current dynamics in order to enhance their performance. The firms should continue with acquisition and application of entrepreneurship knowledge and skills to enhance the firms’ performance. The management of freight transport firms should lobby to persuade the regulatory agencies to review the policy that negatively affect the freight firms’ performance in a bid to harmonize the policies regulating the industry so as to enable a good playing ground for the transport industry. The management of freight transport firms should formulate structures, operations, policies and strategies that will enhance their operations, income and profitability in order to increase their performance.