Factors that influence venture capitalist’s decision in funding Small Medium Enterprises in Kenya

Submitted in partial fulfillment of the requirements for the Master of Business Administration at Strathmore UniversitySmall and medium Enterprises are a key economic growth driver in Kenya. Although many start-ups rely on founder’s savings, friends and family to raise funds, these sources are normally not sufficient to scale the business to a profitable level. The entrepreneurs are therefore forced to look for alternative sources of funding. Banks have always been a popular source of capital for business but due to the high risk levels and uncertainty associated with SMEs, the banks always put conditions which are way above the SME’s reach hence making it difficult for them to access the much required capital. Venture capital has become popular in Kenya in the past 10 years as an alternative source of funding since they are willing to take up the risks associated with SMEs. The aim of the study was to determine the factors considered by venture capitalists in evaluating SMEs in Kenya. The specific objectives were; to determine the influence of management characteristics on VCs’ consideration for funding of SMEs in Kenya, to find out the influence of entrepreneur’s characteristics on VCs consideration for funding of SMEs in Kenya, and to establish the influence of business characteristics on VCs consideration for funding of SMEs in Kenya. This study was a descriptive survey design. The target population in this study comprised of venture capital firms registered with East Africa Venture Capital Association ,Capital Markets Authority or . Primary data was collected through Self-completed Questionnaires. Self-completed Questionnaires to executives and managers of Venture capital or private equity firms in Kenya was used as the sole data collection tool. The researcher analysed data on the three objectives using factor analysis. The study findings were that three key variable viz; market factors, product factors and financial factors were the key factors considered by VCs in their consideration to fund SMEs. The study also established that each of the key variables had specific items of interest to the VCs in their evaluation of SMEs for funding. On entrepreneurship characteristics, education background of the entrepreneur and entrepreneurs past experience were the critical items of consideration by VCs, on management factors, a team with a good education background and a team with a wide industry experience would be considered. On product factors, ability to stimulate a new market and the product with a global potential are key considerations. Market factors that are critical according to the study are huge market for a product and a huge market growth potential. Key financial aspects of consideration were ability of the venture to generate sufficient operating cash flows and potentially profitable exit options. The study concluded that SMEs v seeking venture funding from VCs should pay attention to enhancing their capacities on the three key variables stated in the study as important; market factors, product factors and financial factors. The study recommended the need for venture capital firms to be encouraged to create conducive environment that will encourage business persons to share their business ideas, venture capital firms be encouraged to do thorough marketing to create awareness of their key areas of interest when evaluating SMEs for funding and the government’s involvement in venture capital is important to the venture capital market

The Distinction between exploitative and non-exploitative underage sex and its effect on the scope of strict liability under section 8 of the sexual offences act

Submitted in partial fulfillment of the requirements of the Bachelor of Laws Degree, Strathmore University Law SchoolSection 8 of the Sexual Offences Act of Kenya was passed in 2006 with a view to protect minors from sexual abuse and exploitation. Under this law, consensual sex between minors is also criminalized because the law seeks to protect minors from themselves in terms of the negative effects arising from early sexual debut and activity. However, this law fails to consider the reality that adolescents engage in sexual activity as part of their normal development process and transition into adulthood. Therefore, criminalization of sexual activity in cases of non-exploitative, consensual sexual activity between adolescents goes ultra vires to the intended punitive target of section 8 of the Act. This paper recognizes the need to distinguish between exploitative and non-exploitative sexual activity between minors in order to correctly apply the law. In light of this, this paper seeks to demonstrate how the law can effectively deal with the current lacuna in the criminal justice system using the age-gap approach system. The application of this approach is restricted only to cases of non-exploitative, consensual sexual activity between adolescents of comparable age. This research paper is hinged on the application of the age-gap approach to educate rather than sanction adolescents on sexual and reproductive health in order to maintain the required balance between protections of adolescents from sexual predators as well as the harmful effects of adolescent sexual activity and preservation of their person-hood and autonomy during their transition into adulthood

Fostering bioscience innovation: lessons from BIO-EARN

This paper synthesises the findings of, and distils lessons from a study which has sought to illuminate the process of bioscience innovation in three East African countries: Kenya, Tanzania and Uganda. More specifically, we attempt to trace specific efforts to foster biotechnology innovations in those countries and to determine in what ways and to what extent the innovation system in place impinges on the final outcome of those innovations. The paper concludes with a set of policy recommendations that may enhance bioscience innovations in East Africa