Measuring
Business Skills Cognition :
The Case of Informal Sector Entrepreneurs in Kenya
Joseph Bosire and Paul Gamba
Abstract:
There has been an increased interest in informal sector business activities. One
of the major concerns has been the cognitive abilities of the participants of
this sector, especially in view of the liberalised and highly competitive nature
of business operations today. This paper presents and discusses findings of a
study on measuring Business Skills Cognition among informal sector business
owners. Data were collected from 208 respondents distributed over nine trading
centres in both urban and rural Kenya. Business Skills Cognition was measured
using three instruments to yield a continuum of scores ranging from 45 to 265
points. It was found that informal sector business owners differ in the various
dimensions of business and in Business Skills Cognition. The findings are
important in evaluating the usefulness of the informal sector in employment
creation and the ability of the participants to earn a comparative advantage in
an increasingly complex and competitive free market system.