Digital Kenya: An Entrepreneurial Revolution in the Making

Foreword......Page 7
Praise for this Book......Page 9
Contents......Page 11
Note to the Reader......Page 16
 References......Page 18
Acknowledgments......Page 19
About the Editors......Page 21
List of Contributors......Page 23
List of Figures......Page 29
List of Tables......Page 30
  Introduction......Page 31
  The Purpose......Page 33
  Chapter Overview......Page 34
  Market Opportunities......Page 35
  The Inner Life of Technology Entrepreneurship in Kenya......Page 37
  Managing the Fine Details of Doing Business in Kenya......Page 39
  Summary......Page 41
  Conversation #1......Page 43
Part I: Looking Back and Looking Ahead......Page 54
   Introduction......Page 55
   Evolution of ICTs......Page 57
    Offline Technologies......Page 59
    Sector Regulation Defining Connectivity......Page 61
    Connectivity......Page 62
    Agents and Market Responses......Page 63
    Service Offerings That Supported the Emerging Internet......Page 64
    Internet Evolution from 2000 to 2010......Page 66
    Geographical: Network Coverage......Page 67
    Disruption Is a Deadly Game......Page 68
    The Agent Itself Must Change Tactics......Page 69
  References......Page 70
  Conversation #2......Page 72
   Introduction......Page 82
   Africa Rising......Page 84
    Characteristics of the Kings......Page 86
    Entrepreneurial Ecosystems......Page 87
    Vibrant Telecoms......Page 88
    Tech Infrastructure......Page 89
    Supportive Policies......Page 90
   Profiles of the KINGS......Page 92
    Kenya......Page 93
    Ivory Coast (Côte d’Ivoire)......Page 96
    Nigeria......Page 97
    Ghana......Page 99
    South Africa......Page 101
   Industry Events......Page 103
   Conclusion and Recommendations......Page 104
  References......Page 105
  Conversation #3......Page 111
Part II: Uncovering Unique Market Opportunities......Page 120
   Introduction......Page 121
   Market Voids......Page 122
   Market Enablers......Page 125
   Special Type of Market Enabler: A Digital Platform......Page 127
   Market-Enabling Digital Platforms in Northern Hemisphere Economies......Page 129
   Market-Enabling Digital Platforms Emerging in Kenya......Page 136
   Conclusion and Recommendations: The Impact of Market-Enabling Digital Platforms......Page 143
  Conversation #4......Page 147
  References......Page 145
   Introduction......Page 156
    Reimagining Ownership: The Sharing Economy......Page 159
    Reimagining Production: The Open Source Movement......Page 160
    The Middleman and the Information Revolution in Education......Page 163
    Traditional Education......Page 165
    Technology-Driven Education......Page 168
   Conclusion......Page 173
   Conversation #5......Page 177
  References......Page 174
   Introduction......Page 184
   The Concept of Social Entrepreneurship......Page 185
    Defining Impact Sourcing......Page 186
   DDD Kenya......Page 187
    Business Model......Page 188
   Setting Up the Company......Page 190
   Running the Business......Page 191
   Challenges of Operating a BPO Company......Page 192
   Successes......Page 193
   Kenya’s BPO Sector: Policy and Recommendations......Page 194
  Conversation #6......Page 198
  References......Page 196
    End of the Cyber Café’s Reign......Page 208
   The Backstory of Blogging and Kenya’s Content Creators......Page 212
   The Rise of Kenyans on Twitter......Page 214
   Makmende: Meme, Muse, and Model......Page 215
   Digital Identity Spurs Drought Intervention......Page 217
   Snippets in Cyberspace Lead to Songs in Public Space......Page 218
   Medics Mobilize against Ministry before Masses......Page 219
   Al-Shabaab versus the Administration: Twitter Amplifies Terror during Westgate Attack......Page 220
   Private Developers Meet Match Thanks to Pupils, Protestors, and Pope......Page 222
   #SomeoneTell the World: Kenyans on Twitter Make Their Mark......Page 223
   #SomeonTellCNN: Where It All Began......Page 224
   #SomeoneTellAfrica: Kenyans in Continental Combat......Page 225
   #SomeoneTellCNN: Election-Fever Brings CNN......Page 226
   #SomeoneTellCNN: Presidents Set New Precedent against Media......Page 227
   Conclusion......Page 229
   Conversation #7......Page 239
  References......Page 231
Part III: The Inner Life of Technology Entrepreneurship in Kenya......Page 244
   Introduction......Page 245
   Theoretical Background......Page 246
   Empirical Context......Page 251
   Research Method......Page 252
    Conducive Cultural Norms around Entrepreneurship......Page 253
    Availability of Entrepreneurial Support Systems......Page 255
    Availability of Qualified Human Capital......Page 256
    Presence of Appropriate Financing Sources......Page 257
    Venture-Friendly Markets for New Products......Page 259
    Key Barriers to and Enablers of Early ICT Ecosystems in Resource-Scarce Contexts......Page 260
   Development Trajectory of Tech Ecosystems in Resource-Scarce Contexts......Page 262
   Conclusion......Page 266
   Future Research......Page 270
   Conversation #8......Page 277
  References......Page 271
   Introduction......Page 283
    Barriers to Entrepreneurship in Emerging Markets......Page 285
    New Forms of Entrepreneurial Activity......Page 287
   A Case Study of Technology Entrepreneurship in Nairobi......Page 288
     Entrepreneurs: Disconnect between Available Funding and Funding Sought......Page 290
     Innovation Hubs: Lack of Seed Capital......Page 291
     Investors: Too Much Seed Funding......Page 292
     Entrepreneurs: Strategy and Planning......Page 293
     Innovation Hubs: Team Building and Leadership......Page 294
     Entrepreneurs: Fuzzy Markets......Page 295
     Innovation Hubs: Designing for Markets......Page 296
     Investors: Identifying Market Boundaries......Page 297
   Discussion: Disconnected Perspectives as Challenges to Technology Entrepreneurship in Nairobi......Page 298
    Contradictory Perspectives: Financial Capital......Page 299
    Misaligned Perspectives: Market Readiness......Page 300
   Recommendations for Policy and Practice: Connecting Perspectives......Page 301
   Conversation #9......Page 308
  References......Page 304
   Introduction......Page 320
    Organizational Culture......Page 323
    Organizational Hybrids......Page 325
   Nonprofit and For-Profit Organizational Cultures......Page 327
   Case Studies: iHUB and 88MPH......Page 330
    Artifacts and Behaviors......Page 331
    Espoused Beliefs and Underlying Assumptions......Page 333
   Conclusion......Page 338
    Beyond Kenya......Page 339
   Recommendations for Practitioners......Page 340
    Think Holistically......Page 341
   Recommendations for Researchers......Page 342
   Conversation #10......Page 347
  References......Page 344
Part IV: Managing the Fine Details of Doing Business in Kenya......Page 353
   Introduction......Page 354
   Quick Wins from the New Sector Policy: Market Liberalization......Page 356
   The Public Policymaking Process......Page 357
   Nurturing Emerging Tech Entrepreneurs......Page 358
   Policymaking in the Kenyan Context......Page 359
   Problem Statement......Page 361
   General Systems Theory: A Recapitulation......Page 362
   Interactive Decision-Making Theory......Page 363
   The East Africa Marine Systems (Teams)......Page 364
    Headwinds......Page 366
    Probes......Page 368
   M-PESA: A First-of-Its-Kind Money Transfer Tool......Page 369
   Posta Land Development: A Failed Policy for the Public Good......Page 371
   Implications for Policy......Page 373
   Conclusion......Page 375
   Conversation #11......Page 378
  References......Page 376
   Introduction......Page 383
   Zooming Out: Two Conflicting Worldviews in Kenya’s Tech Community......Page 386
    Entrepreneurial Mentality: Hustling versus Single-mindedness......Page 387
    Entrepreneurial Strategies: “Hedge Your Bets” versus “Exploit One Niche”......Page 389
    Relationship Management: Relations versus Contracts......Page 391
    Firm Evaluation: “Bricks and Mortar” versus “Strategic Value”......Page 393
    Self-Image: “Catching up” versus “Leading the Way”......Page 394
   Zooming In: Mindsets Getting to Work......Page 396
    Mindset #1: The Defender......Page 397
    Mindset #2: The Pretender......Page 398
    Mindset #3: The Pleaser......Page 399
    Mindset #4: The Blender......Page 400
    Mindset #5: The Educator......Page 402
    Mindset # 6: The Innovator......Page 403
   Concluding Remarks......Page 405
   Conversation #12......Page 408
  References......Page 406
   Introduction......Page 416
   Parallel Entrepreneurship in Africa......Page 417
    Lack of Quality Middle Managers......Page 419
    Unemployment......Page 420
    Hedging......Page 421
    Synergies......Page 422
    Entrepreneurs......Page 423
    Investors......Page 425
    Government......Page 426
    Research......Page 427
   Conclusion......Page 429
   Conversation #13......Page 434
  References......Page 430
   Introduction......Page 441
   Literature Review......Page 443
   Methods......Page 444
   Results......Page 446
   Discussion......Page 450
   Recommendations......Page 455
   Conclusion......Page 459
   Conversation #14......Page 464
  References......Page 460
   Concluding Thoughts......Page 471
    Mindset Change......Page 474
    Critical Reflection......Page 477
    Creation of Newness......Page 480
    Location as Comparative Advantage......Page 483
    The Dark Sides of Entrepreneurship......Page 486
    The Future Is in the Past......Page 488
    Pan-Africanism in Business......Page 490
    Africa’s Response to Grand Global Challenges......Page 491
  References......Page 493
Index......Page 496