Entreprenurial Survival Strategies For Kenya's One and Two Star Hotels

Abstract

The research study investigated Kenya’s one and two star hotels that have been in operation for more than five years. The aim of the study was to understand the survival strategies of these hotels so as to minimize failures of start-ups in the hotel industry. The research had five objectives: (1) Evaluate managerial skills of entrepreneurs (2) Assess existing entrepreneurial financial management practices: (3) Determine the importance of customer relations: (4) Examine the value placed on entrepreneurial skills: and (5) Determine the importance of training and education. The European Foundation for Quality Management Excellence Model engages the evaluation of enablers to produce business performance results. The model’s customization to fit the Africa Excellence Foundation Model (South Africa). The research adopted a prescriptive approach in its design. Through the methodology of purposeful sampling design, owners of one and two star hotels within Nairobi, Eastern, Central and Coast Region were surveyed. Data collection was carried out through interview schedules and self administered questionnaire. Of 64 questionnaires, 60 were valid. Inferential statistics was employed to make population generalizations while factor analysis was used as a structure detection technique in validity testing. The equality of means of all the independent variables was investigated using t- test analysis. A p-value less than 5% was considered statistically significant. Four key finds were realized from this study, (1) in relation to managerial skills, professional conduct is a business survival requirement and relationships within the micro environment must be cultivated around mutual trust amongst management, non- management staff and suppliers: (2) change in business practices is a forced reaction that is undertaken so as to avoid losses in terms of the market and profitability: (3) with regards to customer relations, customer retention is enhanced by offering personalized service: and ( 4) entrepreneurial skills are embedded in creativity, whereby the products and services need to be continuously re-engineering so as to keep in tune with customers needs and satisfaction.