Moderating Influence of Risk Management on the Relationship between Capacity Building and Performance of Entrepreneur-Empowerment Programme in Nairobi County, Kenya

Abstract

Empowerment is one of the growing development concept and theoretical framework that is shaping socioeconomic policies and practices in modern economies. However, risks pose possibilities of losing benefits of empowerment programmes. But there exists limited knowledge on the role of risk management on the interaction between capacity building and performance of empowerment programmes, especially those related to entrepreneurship. The purpose of this study was to examine the relationship between capacity building (provision of worksite, training) and performance of entrepreneur-empowerment programme and how such relationship is moderated by risk management in Nairobi County, Kenya. Theory of constraints and system theory of organization guided the study. Pragmatic paradigm was used to select a descriptive correlational survey design. The target population was 350 comprising of 327 entrepreneurs who had benefited from the entrepreneur-empowerment programme in Nairobi County and 23 programme managers. A sample of 186 composing of 174 entrepreneurs and 12 programme managers was selected using proportionate stratified random sampling method. While quantitative data was collected from the entrepreneurs using structured self-administered questionnaire, qualitative data was collected from the programme managers using informant interview guide. The reliability (0.752) of the questionnaire was tested using Cronbach`s coefficient. Inferential statistics such as Pearson correlational coefficient and regressions analysis as well as descriptive statistics namely; percentages, standard deviation, mean and frequency were used to analyze the quantitative data. Qualitative data was analyzed through content analysis. Hypothesis was tested using F-test at a confidence level of 95%. The results revealed that risk management moderates the relationship between capacity building and performance of entrepreneur-empowerment programme. Thus, it was concluded that risk management is a critical consideration when building the capacities of entrepreneurs for optimum benefits. Hence the recommendation to the government to expand capacity building programmes through appropriate need-based programmes and appropriate risk management strategies so as to empower entrepreneurs into productive and competitive entrepreneurship.