Factors Influencing Management of Tech Start-Ups in Nairobi

Abstract

Tech start-ups in Nairobi are organized into incubation centres where they commonly develop online service-based applications. Nairobi’s ICT sector is familiar with the roles & functions of these incubators but little has been documented about how developers actually manage their ventures. The results of this study describe the influence of knowledge & skills, financial resources and regulatory environment on the managerial activities of tech start-ups in Nairobi. The findings indicate that knowledge & skills are imparted adequately; 58% of developers who receive training on entrepreneurship & business management are able to successfully apply their skills. There is an average 52% success rate in securing external finances for well-organized start-ups with written business plans and an effective business model, receiving equal interest and support from both formal & informal investors. Managerial activities and innovative capacities are also influenced by government regulation and the acquisition of Intellectual Property (IP) of which the latter set are closely associated. The methodology adopted was collection of primary data from developers at incubation centres, managing online service-based ventures less than two years old. The findings in this research tend to mitigate risk concerns that venture capitalists and other investors have when investing into these tech start-ups.