Assessment of Motorcyclists’ Entrepreneurial Skills on Performance of Boda Boda Transport Business in Trans Nzoia County, Kenya

Assessment of Motorcyclists’ Entrepreneurial Skills on Performance of Boda Boda Transport Business in Trans Nzoia County, Kenya

Sirengo Gilbert Tawayi, Dr. Peter Simotwo
Department of Management, School of Business and Economics, Mount Kenya University, P.O.BOX 1869-30200, Kitale, Kenya

DOI: https://dx.doi.org/10.47772/IJRISS.2023.7745

Received: 29 May 2023; Revised: 16 June 2023; Accepted: 21 June 2023; Published: 21 July 2023

ABSTRACT

This study was focused on the assessment of Motorcyclists’ Entrepreneurial Skills on Performance of Boda boda Transport Business in Kitale Town, Trans Nzoia County, Kenya. The main problem with Boda boda business transport in Trans Nzoia County is the poor standard of living among the riders’ despite being in the business for many years. This study used the FM&C theory that reflects on the Management Accountability Framework (MAF) process that seeks to understand how Entrepreneurial Skills can affect the performances on small businesses like Boda boda business transport.  A pilot study was conducted to test the validity and reliability of the research instruments. Research experts, comprising the supervisors, ensured that the content validity was relevant and appropriate for the study. The study used Cronbach’s coefficient alpha to determine the reliability coefficient of the questionnaire. Data that was collected was checked for accuracy, cleaned and coded to facilitate analysis. Analysis was done using descriptive statistics that included   frequencies, mean, percent, standard deviation as well as inferential statistics. The data was analysed with the aid of SPSS. The findings were presented using tables and figures. This study concluded that financial management skills, time management skills, communication skills and risk management skills had a positive significant effect on performance of Boda boda business transport. The study therefore, recommended that boda boda operators in the county should make more efforts in carrying out financial management skills strategy, time management skills, communication skills and risk management skills in order to improve on performance of boda boda business transport.

Keywords: Entrepreneurial Skills, Performance of Boda Boda Business, Trans-Nzoia County

INTRODUCTION

Boda Boda transportation is a process that involves the movement of commuters, goods and services from a given point of origin to a specific destination using a commercial motorcycle. Boda boda-more often motorcycle taxi is a common mode of transport across African countries under different names. In Benin and Togo, they are known as zemidjan; in Cameroon, bendskin; in Niger kabukabu; in Nigeria okadaor alalok and oleyia in Togo (Howe, 2003). Boda bodas provide public transport services in both rural and urban areas. They are a preferred means of transport as they can easily navigate through traffic and are very fast and sometimes considered affordable to many. In Kenya, both bicycle and motorcycle services are known by the same name, boda boda. However, the term boda boda applied for this study.

Globally, it is estimated that there are over 200 million motorcycles in operations with South and East Asia taking the larger share of this population. Asia has witnessed rapid growth, followed by North America, Western Europe and Africa. European Union data shows that the number of motor bikes across Europe increased by 28% between 2000 and 2005. In the Netherlands, the number of motorcycles has doubled since 1998, reaching 634,000 motorcycles and in the United States. United States US numbers have increased between 1997 and the United States. Year 2003 (Benmaamar, Ellis & Dunkerley, 2001). Inside, the use of motorcycles dates back to 1860 by Pierre Michaux in Paris. However, there has been a significant increase in motorcycle development in Europe and America (Fasakin, 2002). From a global perspective, motorcycles are the main means of transportation, especially in Taiwan and Vietnam due to low costs and lack of public transport.

The biggest global motorbike markets are China, Asia, India, Vietnam and Indonesia. During the 2008 global economic recession, motorbike market grew by 6.5%, the market has continued to enjoy, and experience increased market share over the years all over the world. This growth was mainly contributed by urban congestion and the ever-increasing fuel prices (Chepchieng, 2011).  In Africa, the use of motorcycles dates back to 1960’s but however its commercialization started after the fall of the restructuring of the World Bank in the 1980s and the global economic downturn have impacted on economic growth in the developing world. The restructuring of the World Bank in the 1980s and the global economic downturn have impacted on economic growth in the developing world. This created the need for developing countries to restructure their public transport systems that included taxis and buses (Kumar, 2011).  In Nigeria, there were inadequate transport services and great mobility problems (Huang&Preston, 2004). As a result of these inadequacies, there was an emergence of motorcycle and tricycle to help curb the transport constraints. Today, motorcycles locally known as “Okada” form an integral part of the public transport system in Nigeria both in the rural and urban centres (Arosanyin, Olowosulu&Oyeyemi, 2011).

A broader understanding of the lack of business skills is happening in Kenya, especially in small and medium-sized enterprises (SMEs). However, there are signs related to Kenya’s sales in small and medium-sized SMEs that lack Entrepreneurial Skills hence a challenge to operators in carrying out the business. The application of applied business skills has also been shown to help define the differences in the performance of small business standards taking into account national and international diversity and boda boda Transport business is not exceptional as a case of Trans Nzoia County, Kenya.

Within East Africa, the two-wheel bicycle was invented in Uganda and it was majorly referred to “boda boda” (Howe, 2003). In Uganda, the origin of Boda boda services using two-wheel peddle bicycles dates back in 1960’s in Busia County of Tororo County, Eastern Uganda. They were used to transport goods at the Kenya-Uganda border. In the 1980s motorcycles were introduced into the market by BMK (Uganda) Ltd (Benmaamar, Ellis & Dunkerley, 2001). Boda boda were mainly used to provide low-density and low Town transport services within short distances. The boda bodas majorly operated from specified places within the shopping centres and provided transports in the feeder roads. The initial boda bodas were operated manually but motorized bicycles were later introduced and currently we are using the concept of motorcycles. The installation of electric vehicles and motorcycles has strengthened boda boda’s distribution business by reducing operating hours and terminating and transportation services.

Currently in Kenya, there is a wide range of businesspersons ranging from small-scale business traders like shop keepers, vegetable and fruits vendors, motorcycle/bicycle operators among others to large-scale business operators like factory owners. Despite the relatively new Boda Boda business since the beginning of the last century in Kenya, it is one of the fastest growing businesses in the country. The roots of this branch go back to the colonial era when the Indians were respectful, rich and powerful and used white people for bicycles as a means of transportation.

In Kenya, the number of accidents involving boda boda bikes increased sharply from 1.7% in 2005, to 4.2% in 2008 and then 6.1% in 2009. The use of broken helmets is very common and rare, especially for travellers, to increase the risk of serious injury in an accident. Most motorcycles in rural areas operate without insurance and without the required motor bikes tax. Most boda boda riders do not have a driving license and few have no training related to safe driving, traffic rules or road safety (International Labour Organization, 2007).

Research Questions

This study assessed the effects of motorcyclists’ entrepreneurial skills on performance of boda boda transport business in Trans Nzoia County, Kenya. The study sought answers to four questions; i) what is the effect of financial management skills on performance of boda boda transport business? ii) What is the effect of time management skillson performance of boda boda transport business? iii) What is the effect of communication skills on performance of boda boda transport business? iv) What is the effect of risk management skill son performance of boda boda transport business in Trans-Nzoia County?

LITERATURE REVIEW

Financial Management Skills and Boda Boda Performance

Countries with the ability of savings in banks and small banks to meet debt requirements for small business owners however lenders do not accept Boda boda business for loans because it was considered as a slow trader due to a lack of Entrepreneurial Skills.  Bank lenders often borrow money to businesses, like services providers and factories, oil and gas companies. The Entrepreneurial Skills would consider many things and would refers to the level of education, the number of credit institutions, the interest rate on loans and the need for cash flow in financial institutions (Hewitt, 2000).

Roodt, (2005) explains that; Accurate and Reliable information was fundamental to financial decisions, including business leases. Literacy level was also reflected in the ability to acquire good Entrepreneurial Skills. Financial Management Skills, Communication Skills, Time Management Skills and Risk Management Skills are management skills that when broken down are as planning, marketing and reporting and Banks always demand cash and other records in accordance with credit requirements. Due to limited learning, many Boda boda riders fail to compete for credit products offered by financial institutions. And because most of this credit services were provided by bank producers, most retailers or boda boda riders fail to apply for a loans to grow their businesses and hence desire to have Entrepreneurial Skills and management program design skills are in the right place to boda boda Transport business to grow its performance in a case of boda boda business Trans Nzoia County Kenya.

Time Management Skills and Boda Boda Performance

The Researcher has evaluated the effects of Time Management Skills on Boda Boda Transport business in Trans Nzoia County, Kenya through the decision-making process to improve the Performance of Boda Boda business. Time Management Skills include managing meeting schedules when called upon to attend group meetings, time management on the starting and ending the day work as Boda boda riders and how to collect potential customers on arranged series. According to Adnan and Korkut(2005), the Board of Voluntary Directors noted that their work for members and their involvement in team decisions can contribute to a foundation of team trust and responsibility when working on volunteer work that require good time management skills, (Aeon, & Aguinis, 2017)most of them agree on the type or size of business that includes “knowing who you are” and “who knows” who basis. The “Knowledge” features include time management skills, production and technical skills, financial expertise, marketing skills, human resource management and management and startup skills. The “know” article focuses on timeline, management skills or network skills. Trading time management skills are therefore essential for a business to be successful. This strategy was used to evaluate how Time Management Skills was used to improving the Boda boda Transport business model in Trans Nzoia County, Kenya. The lender will not be able to file a patent file if the boda boda Transport business cannot meet the loan if a loan payment schedules does not comply with schedules and or if the bank or lender can decide to go ahead and select a lender to repay it. Timely management plans or Skills are needed to address such issues to prevent boda boda Transport business short fall from achieving their own priorities in this competitive market.

Another factor contributing to the declining interest rate was the fragmentation of Kenyan banks and youth inability to have Time Management Skills schedules to run boda boda Transport business in a case of Trans Nzoia County, Kenya and other businesses. Therefore, time management skills are an important part of these processes. These factors and the size of the business are essential for the Boda Boda Transport business to thrive in Trans Nzoia County, Kenya. Therefore, the government should educate Boda Boda Transport business on the methods that assist the riders to learn Time Management Skills to grow the Performance of Boda boda transport business a case of Trans Nzoia County Kenya.

The majority of Boda Boda transport business has ensured that business plans and time management Skills can be trained and developed once Boda Boda business leaders have completed and implemented appropriate processes (Pugh, & Nathwani, 2017).  The research has also found that boda boda transport business have no good business skills, and the Researcher appeals to the County government needs to identify the most effective way to develop those skills of entrepreneurial skill to make the business to grow on the performance to improve the poverty line in the riders’ life as boda boda Transport business.

Communication Skills and Boda Boda Performance

According to Castells, (2009), business management remains more complex for Boda Boda Transport business than for older firms, not only because of the democratic policy of democratization, but also because ownership is very different. The researcher was investigating the effects of lack of communication skills on Performance of boda boda businesses in Trans Nzioa County, Kenya as a psychological provision to reduce government unity to improve Boda Boda’s mobile business performance in Kenya’s Trans Nzoia County. All businesses need the right communication skills, although the Boda Boda business must rely on communication skills as a pivot control when dealing with customers.  It was important that communication skills work effectively to improve the position of the transport industry (Hargie, 2006). He explained that communication skills needed to be integrated with technology on the same basis as other skills, especially rental costs. Banks and small firms use communication to determine the level of protection before issuing financial aid. However good communication skills earned by boda boda riders would improve Performance on boda boda riders’ income and stable living standard and their families.

But sometimes things go beyond what they can solve. For example, the interest rate on a loan was related to the interest rate, which was about the same as the interest rate set by the Central Bank of Kenya. Interest rate, how many times the loan was saved and use or type of business. A secured loan was called a lower fee rate because it involves investing in global risk. The researcher was considering Boda boda transport business to have entrepreneurial skills especially communication skills to grow their business Performance and create wealth and alleviate poverty line to the riders.

High interest rates, which force lenders to lend to horses because profit was based on profit, reduce profits in the worst cases. To organize presentations with outsiders, entrepreneurs need to communicate effectively and this requires communication skills, including communication with others, and the importance of understanding the tools that target the market.  Business benefits for partners include offering, tools, market opportunities, business advice, product marketing, market knowledge, supplier knowledge, promotion and support, tools, knowledge and experience, evaluation and Communication Management Skills which was the basis that businesses like Boda boda Transport business require such Skills to communicate with their customers (McLean, 2005).

Risk Management Skills and Boda Boda Performance

According to (Furnham, 2000), government problems associated with the SACCOs boda boda have challenges facing many other similar organizations. Otherwise, when more control brings us trouble or Well-defined principles of governance, internal control, service delivery, basic administration and outsourcing, problems can bring about financial growth and stability. Hence Boda boda Transport Business Performance will depend on its strategy that creates room to manager business risk as a tool to play an important role in boda boda business.

The researcher therefore assessed the impact of risk management skills on Boda Boda’s business in Kenya’s Trans Nzoia County through the Boda Boda documentation package, which enables the decision-making process to improve performance. Outcome reports in Kenya, the Centre for Corporate Management in Contact and the Department of Integration and Marketing (2008) has developed guidelines for the SACCOs in administration in specific areas for job development and boda boda Transport business has a role to play.

The researcher found that the explanation to challenge the businesses that could be the source of any successful business was creation of Entrepreneurial Skills to Boda Boda riders and risk Management Skills programs should therefore apply to any business and boda boda’s business was not different because it has been a major economic driver. This has created employment for many people, especially Kenyan youth and the rest of the world. Many Boda Boda Transport business riders in Kenya are unfamiliar with Risk Management Skills hence need to teach risk management to reduce business risk that has been on raise on our Kenyan roads.

Andretta, (2014) suggest that those with more education and training in risk management skills are more likely to succeed in this role and boda boda business riders must learn risk management.  However lower Literacy levels indicate a lack of risk management skills in difficult times, and this makes it difficult to make informed decisions about risk management plans.

This would affect the decision on foreign investment in boda boda Transport business. More so low levels of Boda boda transport business bureaucrats are reflected in the drop in enrolment in Kenya. many are illiterate, leading to boda boda’s entry into the training level of Entrepreneurial Skills to undergraduate students fail. The Researcher was considering bringing this knowledge of Entrepreneurial Skills to the riders so that this business can perform and improve the living standard of the riders to alleviant poverty especially risk management skills to improve Performance.

Theoretical Framework

Financial Management and Control Framework Theory (FM&C)

This study was guided by the Financial Management and Control Framework Theory (FM&C) which was described as follows: The FM&C system that reflects the Management Accountability Framework that shows the Financial Instruments, Markets and Institutions that mitigate the effects of lack Entrepreneurial Skills information on Performance on small and medium scale businesses where Boda boda Transport Business can be accounted for in the organization’s system. The phrase of set boundaries’ indicates that the FM&C system operates a resource management system (external traffic planning) between the rules, costs and performance expectations of the company’s partners.

This also can be compared to the priorities, an effective FM&C system comes at a time when the term Skills develops a well-managed Entrepreneurial Skills as a management system set within the boundaries for all decisions and exchanges; that establish and implement clear functions. This also will play a supply chain management and in-house placement, and the perception of affordable prices and cooperation beliefs. The exact size of Business Orientation (EO) was first presented by Miller (2003). Miller suggests that the same business organization involved in creating product markets can take risks and lead quickly to beating competitors. Miller, therefore, describes the adoption of tools, design and functionality as a key component of EO and Boda boda Transport business was not exceptional as small business entity.

Continuing to build the vision, Lumpkin and Dess (2006) entered into fierce competition with Miller’s majesty. Lumpkin and Dess (2006) argue that a successful organization must be independent of competent leadership without an authoritarian approach which was lacking in the Boda boda transport business as in the case of Trans Nzoia County, Kenya.

Competitive noise, on the other hand, was an effective form of governance where an organization was accountable to its external sponsors for its competition. Current research would use business management strategies developed by Miller, Limpkin and Dessi to test pilots’ knowledge of business understanding and the impact of their work. This information was in line with the impact of the business strategy on the operation of Boda Boda Transport business Trans Nzoia County, Kenya and may apply to other countries with the same business.

This research failed to take the lead of training on the Entrepreneurial Skills because the current training was reflected in the secrecy of individual business and work of Boda boda Transport business operates on individual basis. In examining the interrelationships between SME models in Kenya, Gathenya & Bwisa (2011) assessed the size of this business model with a focus on strategic depth, planning space, flexibility planning and quantitative outcome measurement based on Hitt et. al (2001). The study has installed these tools in measuring performance calculations for airlines but Boda boda Transport business require Entrepreneurial Skills to measure its Performance.

The idea of establishing equitable organizational resources and the ability of people (physically and mentally) to empower the company to produce advertising products and services like Boda boda Transport business need to get the right technical service and the lowest price, try to enter an existing market and see the products and be able to sell the products at the prices consumers are willing to pay. These decisions are important in building a sustainable business and supporting its products as it grows so to Boda boda Transport business a case of Trans Nzoia County, Kenya since the all businesses or organization earns revenue from the sale of its products (Lumpkin &Dess, 2006).

Conceptual Framework

METHODOLOGY

Research Design

The study employed descriptive survey research design. The descriptive study seeks to obtain information that describes and explains how to ask people about their perception, attitudes, behaviours, or values (Mugenda & Mugenda, 2009).  Moreover, descriptive design is concerned with finding out the, who, what, where, how of a phenomenon that exists which was the concern of this study.  This design was therefore appropriate, as the researcher would be in a position to establish the effects and determine how motorcyclists’ Entrepreneurial Skills would improve performance of boda boda transport business in Kitale town.

Location of the Study

The study was conducted in Kitale town, Trans Nzoia County, which is one of the 47 counties in Kenya and from North Rift Region, created after the announcement of a new law in 2010. Kitale town has been a good place to study because of its large and cosmopolitan population. The town is located between 0⁰52 ‘and 1⁰18′ North of the Meridian and 34⁰18’ ‘and 35⁰23′ East of Greenwich Meridian and is bordered by the Republic of Uganda to the West, West Pokot County to the North, Elgeyo Marakwet County to the East and Uasin Gishu County to the South. It has an area of 2,496 Km², representing 0.2 percent of the country. The County is divided into five Sub Counties, each representing the Constituency, namely: Trans-Nzoia West, Kiminini, Trans-Nzoia East, Endebess and Kwanza Sub-County (Trans Nzoia National Development Plan, 2017). Therefore, this study was conducted with a focus on Kitale Township where all the five Sub-Counties Boda Boda Operators (BBOs) are represented in large numbers.

Target Population

The Target population of this study was 2327 boda boda operators within Kitale Town as represented by the five Sub-Counties in Trans-Nzoia County.

Sample Size and Sampling Procedures

The study used the Krejcie and Morgan’s (1970) table for determining sample sizes to come up with a sample. This table shows that as the population increases the sample size increases at a diminishing rate and remains reasonably constant at a little more than 380 cases. They indicated that for a population of 2327, the corresponding sample size is 331. Thus, a sample of 331 Boda Boda operators was adopted in the study. Probability proportionate to size (PPS) sampling techniques were used to distribute the sample as per the representation of the sub-counties within Kitale town.

Data Collection Instruments

Questionnaire was administered to the boda boda operators and solicited data on performance of boda boda transport business. Sekaran, (2003) indicated that the use of descriptive survey research design as a medium allows enough time for the questionnaire respondents to provide reflective answers and allows large samples to be covered shortly. The interviewees were provided with questionnaires, which should read and understand the questions and compose the reply as planned for use by the survey itself. The questionnaire generated data on financial management skills, time management skills, communication skills and risk management skills and their influence on performance of boda boda business transport in Trans Nzoia County, Kenya.

DATA ANALYSIS PROCEDURES

Data cleaning was done to ensure that all the variables are keyed in correctly and no variable is missing. The data was appropriately coded and keyed in the computer using Statistical Package for Social Sciences (SPSS) version 25 to analyse the four objectives in line with this study. The quantitative data collected was analyzed, presented, and interpreted using descriptive data. Descriptive statistics such as mean, standard deviation, frequency and percentage was used to describe the data. Inferential statistics employed both correlation and regression analysis. The analyzed data was presented in the form of tables, bi-charts, graph and graph history. Data analysis was useful in describing and explaining the variables of the   study.

Study Findings

Financial Management Skills and Boda Boda Performance

The study sought to assess the influence of financial management on performance of boda boda transport business in Trans Nzoia County, Kenya. To achieve the objective, financial management skills (M-pesa services, E-banking services; use of ATM cards and savings culture) five-point Likert summated scale was utilized in the analysis. The results, which included mean and standard deviation, were analyzed, and summarized.

The statements that majority of the boda boda oparetors can can apply for bank loansand frequently use M-pesa services reported the highest mean score of 3.930 with standard deviations of .9114 and .9362 respectively. The statements that I use E-banking services on daily basis and that boda boda operators have ATM cards with the mean score of 3.629 and 3.527 respectively closely followed this. Finally, the statement that Boda boda riders embrace the daily savings culture reported the lowest mean score of 3.427 with standard deviations of .9488.

Level of Understanding and Practising of Entrepreneurial Skills

Level of those Practicing Entrepreneurial Skills

Entrepreneurial Skills Information

Challenges Faced by Boda Boda Operators

Inferential Statistics

The study used t-test to show the effect of the independent variables on the dependent variable (performance of Boda Boda Operators). The test was computed at 95% confidence interval.

Time management skills had t-value of 19.087 at 133 degrees of freedom and a significant value of 0.000. Since the significant value was less than the p-value 0.05, then the study concluded that the level of time management skills among the boda boda operators in Trans Nzoia County influenced the performance of the boda boda business.

Financial management skills had t-value of 26.738 at 133 degrees of freedom and a significant value of 0.000. Since the significant value was less than the p-value 0.05, then the study concluded that financial management of the boda boda business groups in Trans Nzioa County influenced the performance of the boda boda industry.

Risk management skills facing boda boda operators had t-value of 20.587 at 133 degrees of freedom and a significant value of 0.000. Since the significant value was less than the p-value 0.05, then the study concluded that challenges facing boda boda operators in Trans Nzoia County greatly influenced the performance of the boda boda industry.

Communication Skills had t-value of 18.318 at 133 degrees of freedom and a significant value of 0.000. Since the significant value was less than the p-value 0.05, then the study concluded that communication skills among boda boda operators in Trans Nzioa County influenced the performance of the boda boda industry.

CONCLUSIONS AND RECOMMENDATIONS

Contributions of the Study

The boda boda business has revolutionized the transport industry to a completely new level. The industry has enabled an emergence of entrepreneurs whose lives have improved. Nevertheless, it has its major setbacks in employing Entrepreneurship Skills in its functionality. Majority of the boda boda riders have little Entrepreneurial knowledge and Skills, something that makes it difficult to have properly managed businesses to improve Performance for gain in the operations. The boda boda riders are however to some extent entrepreneurs though there is room for much more development in that field by training Entrepreneurial Skills to the riders a case of Trans Nzoia County Kenya.

Regarding Entrepreneurial Skills, majority of the respondents deemed them very important to the operations of their businesses though they had various levels of understanding and practicing of the Four Entrepreneurial Skills. Communication Management Skills, and Time Management Skills were the most important to their business, followed by personal grooming or Financial Management Skills and good riding skills or Risk Management Skills.  Though they earned income from their businesses, most of it was used to meeting basic needs. while their sources of financial information were majorly from their own personal sources, friends and family, which was limited sources of information.

The BBOs also had very limited access to credit thereby limiting their potential growth of their businesses.  It is therefore important that BBOs are aware of the various Entrepreneurial Skills since they belong to the micro-business sector, which was one of the driving forces of job creation, economic growth and poverty reductions in developing countries. It should be noted that the boda boda industry has revolutionized the transport industry to a completely new level, yet the majority of the riders have little Entrepreneurial knowledge and this makes it difficult to have properly managed businesses, which yield an ample amount of income.

From the researcher’s perspective, it should be noted that the boda boda business grown to be a major economic contributor to the country. Consequently, there was need for Financial literacy and Entrepreneurial Skills to be instilled in the minds of these industry players because boda boda Performance has been strongly affected for lack of entrepreneur skills on the riders for boda boda staff. The county government of Trans-Nzoia should strive to promote the local unemployed youth to engage in this boda boda business. This helps them develop more Entrepreneurial Skills in the minds of boda boda riders to grow the business and improve Performance a case of Trans Nzoia County Kenya and come up with even more supplementary economic activities. The county government also needs to look into the challenges facing the BBOs that would help improve their Entrepreneurial Skills as well as help in growth of the business as a whole and improve the Performance of this viable business.

Suggestions for Further Study

There is need for further research, especially to gauge how well the various entrepreneurial skills are contributing to the performance of boda boda businesses, since this study only sought to understand how entrepreneurial skills can affect boda boda transport business performance in Trans Nzoia County.

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