Abstract
The study adopted a descriptive survey design having a quantitative approach. The target population for this study was 9,320 real estate entrepreneurs comprised of 884, 95, 320 and 8,021 sourced from Softkenya directory, Kenya Developers Association, Estate Agent Registration Board and National Construction Authority respectively and having their registered offices in Nairobi, Nakuru, Kisumu and Eldoret. A sample size of 384 real estate entrepreneurs was selected and using a stratified random sampling procedure, them that participated in the study were identified and later served with online questionnaires using their emails. The primary data that was collected then analyzed descriptively and inferentially. Environmental risk management was found to a have a statistically significance effect on performance of commercial real estate entrepreneurial investments in Kenya. It further reveals that incomplete environmental analysis and unpredictable weather patterns were the two most frequent and severe sources of environmental risk. Political/legal risk management was however found not to have a statistically significant effect on the performance of the entrepreneurial investments. The study recommends the need by the concern authorities to enforce full compliance of environmental requirements before any entrepreneurial investment commences and throughout its life cycle and aided by real estate entrepreneurs and other stakeholders should further scrutinise all approvals that an entrepreneur requires with a view to determine the viability in the long run of the number of approvals as well as the number of institutions mandated to issue these approvals, ultimately aiming at establishing a one-stop shop in every County where all needed approval could be obtained.
Highlights
Entrepreneurs bear substantial risks and are said to be risk-takers for they commit significant resources to entrepreneurial investments whose outcome is somewhat uncertain
In China, the GDP share of real estate grew from 5 per cent in 2000 to 15 per cent in 2012, with 14 per cent of urban employment coming from real estate and related sectors (Mutreja, Chua, & Guha, 2015)
Similar performance was realised by African states were real estate contribution to GDP was 6.82% (Nigeria in 2014), 10.2% (Tanzania, 2012) while in Kenya it registered 4.8% of GDP in the year 2013 (Kongela, 2013; Kenya National Bureau of Statistics (KNBS), 2015)
Summary
Entrepreneurs bear substantial risks and are said to be risk-takers for they commit significant resources to entrepreneurial investments whose outcome is somewhat uncertain. They are known to undertake calculated risks by way of managing the risks in a bid to improving on the performance of their investment ventures (Koudstaal, Sloof, & Praag, 2014). Real estate sector is globally regarded as an integral part of a country’s economy. It is responsible for a considerable part of its development investment with a sizeable amount of economic growth through backward and forward linkages to a considerable number of ancillary industries and sectors. Similar performance was realised by African states were real estate contribution to GDP was 6.82% (Nigeria in 2014), 10.2% (Tanzania, 2012) while in Kenya it registered 4.8% of GDP in the year 2013 (Kongela, 2013; Kenya National Bureau of Statistics (KNBS), 2015)
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