WBES Data Analysis for Expansion of Operations in Kenya

This report provides an analysis of the World Bank Enterprise survey (WBES) data to identify the obstacles that the organization would face while expanding the business in Kenya. It evaluates different factors such as labour regulation, access to finance, access to land, corruption, and practices of competitors in the informal sector. The report also provides recommendations for the company to improve its expansion in Kenya.

Assignment 2 WBES data
analysis

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Exploration of the data provided and developing an understanding...........................................3
Selection of different questions...................................................................................................4
Analysis the data selected...........................................................................................................4
Highlight of interesting findings.................................................................................................6
Making recommendation to the company...................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Data analysis is the process of inspecting, cleansing, transforming and modelling data
with the goal of discovering useful information, informing conclusions and supporting decision-
making. In this report the chosen organization World Bank Enterprise survey (WBES) needs to
find out the best country in which it can expand its operations. From the data set provided this
report will be able recognize the obstacles that the organization would face while expanding the
business in Kenya. The main interest of this report is to assess the impact of different factors in
these countries which would affect their organization. This report is going to provide an
identification of the requirements of the appropriate data collection instruments that are required
for an effective business decision-making. This report will also conduct an appropriate analysis
and clear communication of findings to state the audience about the factors which would
influence its growth in the new market.
MAIN BODY
Exploration of the data provided and developing an understanding
The business operates in the external environment and it is very necessary for them to
analyse the different types of factors which can affect the working and operations. This is
pertaining to the fact that when these elements and factors will not be considered then it will be
affecting the profitability of business. for proper growth and development, it is very important
for the companies to expand the business. Hence for expanding the business it is very necessary
or company to evaluate the different types of the factors affecting the expansion. These factors
involve labour regulation, access to finance, access to land, corruption and many other different
factors.
Hence, before the expansion of the business it is very important for the company that they
evaluate Kenya in better manner such that different aspect can be assessed. This is necessary
because in case company will be analysing the country before expansion then they can plan the
expansion in better and effective manner (Noshad and et.al., 2019). The reason underlying this
fact is that in case company is already knowing about the country condition then this problem
can be removed so that proper planning can be done in order to eradicate those problem and try
to expand.

Selection of different questions
Within the data set provided there were many different factors and obstacles which can
affect the working and expansion of the business in Kenya. This is necessary because of the
reason that these different factors will be affecting the expansion of the business in better
manner. Hence, the different factors selected for the analysis of expansion in Kenya are as
follows-
 Labour regulation- the labour regulation includes the laws and regulations which labour
need to comply while working (Oudgou, 2021). This is very essential for the reason that
in case the labour regulation of Kenya will not be analysed then this will be affecting the
expansion of business.
 Crime, theft and disorder- in general the crime is being defined as any unlawful activity
which takes place. In case Kenya will be having high crime and theft rate then this will be
affecting the working to a great extent.
 Access to finance- finance is the most important element for the expansion of the
business. in case the finance will not be easily accessible then this will be affecting the
working efficiency to a great extent. hence, before entering into Kenya it is very essential
for company to analyse the availability of finance.
 Access to land- the land is the most essential resource as in case proper land will not be
available then this can affect the business expansion of the company. this is because in
case land will be provided at costly rate then this will be affecting the business expansion.
 Corruption- It is being referred to as process through which some fraudulent activities
are being conducted purposely. In case the corruption will be more then this will be
negatively affecting the working and expansion of the business to a great extent.
 Practices of competitors in the informal sector- the existing competitor affects the
expansion of business in Kenya. This is necessary to be evaluated because in case the
competitor practices will be analysed then company will know in advance that what
strategies need to be adopted in order to expand the business in Kenya.
Analysis the data selected
Descriptive statistics
Over the
course of this
Labor
Regulation
Crime,
theft
Access
to
Access
to land
Corruption Practices of
competitors

fiscal year,
did this
establishment
own or share
a generator?
and
disorder finance
in the
informal
sector
Mean 1.3171 1.94334 1.96024 2.61773 2.21471 2.78429 2.87575
Standard Error 0.0154 0.03132 0.03155 0.08488 0.05102 0.04419 0.04471
Median 1 2 2 2 1 3 3
Mode 1 1 2 2 1 4 4
Standard
Deviation 0.48852 0.9934 1.0007 2.69205 1.61819 1.40156 1.41824
Sample Variance 0.23865 0.98684 1.0014 7.24714 2.61853 1.96437 2.01141
Kurtosis 1.83282 0.34219 0.43545 386.214 4.98492 -1.1739 19.8459
Skewness 1.0156 0.82762 0.92737 17.2688 1.59504 0.12697 1.76164
Range 5 6 6 67.72 16 6 20
Minimum 0 0 0 0 0 0 0
Maximum 5 6 6 67.72 16 6 20
Sum 1325 1955 1972 2633.44 2228 2801 2893
Count 1006 1006 1006 1006 1006 1006 1006
With the help of the descriptive statistics it is clear that on an average the majority of the
factors creates no obstacle. This includes labour regulation and the access to land which creates
no obstacle. Further with the analysis it was clear that access to finance and crime and theft can
create minor impact over the expansion of the business in Kenya (Nizaeva and Coşkun, 2018).
Also with the analysis it is clear that there are two factor which creates a major obstacle in
expansion of the business that is corruption and practices of competitors. further the standard
deviation of these different factors involves the fact that the data is highly spread out in case of
access to finance and access to land. Also in case of labour regulation the data is not being much
spread.
Regression analysis
H0- There is not any significant relation present in different factors over the business activity.
H1- There is a significant relation being present in the different factors over the business activity.
Regression
Statistics
Multiple R 0.12745
R Square 0.01624
Adjusted R 0.01033

Square
Standard Error 0.48599
Observations 1006
ANOVA
df SS MS F
Significance
F
Regression 6 3.89583 0.6493 2.74912 0.01179
Residual 999 235.95 0.23619
Total 1005 239.846
Coefficients
Standard
Error t Stat P-value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept 1.22776 0.0524 23.4323 4.1E-97 1.12494 1.33058 1.12494 1.33058
Labor Regulation -0.0106 0.01637 -0.6459 0.5185 -0.0427 0.02155 -0.0427 0.02155
Crime, theft and
disorder -0.0122 0.01639 -0.747 0.45527 -0.0444 0.01992 -0.0444 0.01992
Access to finance -0.0146 0.00609 -2.4043 0.01639 -0.0266 -0.0027 -0.0266 -0.0027
Access to land 0.01052 0.00975 1.07826 0.28118 -0.0086 0.02965 -0.0086 0.02965
Corruption 0.02138 0.01156 1.84938 0.0647 -0.0013 0.04407 -0.0013 0.04407
Practices of
competitors in the
informal sector 0.03109 0.01182 2.63095 0.00865 0.0079 0.05427 0.0079 0.05427
By evaluating the regression output, it is clear that R is 12.7 % and this implies that the
correlation between all these variables is low that is 12.7%. also the R square is 1.6 % which
simply implies that any change within the independent variable will be causing only 1.6%
change in the dependent variable. Also the significance value is 0.011 which is less than the
standard value of 0.05. Thus, this simply emphasises on the fact that alternate hypothesis is being
accepted rejecting the null hypothesis (Ondiba and Matsui, 2019). Also with the analysis of the
individual significance value it is clear that some factor creates obstacle and some not. With the
significance value it is clear that crime and access to land creates major obstacle over the
expansion of company into Kenya.
Highlight of interesting findings
With the analysis of the finding it is clear that the overall all the factors have a significant
relation with the business activities and expansion. This is particularly because of the reason that
in case these elements will not be evaluated in proper manner then this can affect the working

efficiency of the company and expansion plan can also be affected to a great extent. It is
necessary for the reason that when the different factors will not be analysed and evaluated then
this will be affecting the plans and strategies of expansion (Chege, Wang and Suntu, 2020). The
major factors taken into consideration were labour regulation, corruption, crime, access to
finance and land and practices of competitor. for the company to expand the business in Kenya it
is very important that they evaluate all these factors. The most common factor which creates a
major obstacle within the expansion of the business is the corruption.
Hope, (2019) has explained that the Kenya is the 128th ranked country in the 180
countries for the level of corruption. For being a country suitable for an organization to invest it
needed to be much higher in this rank as the least corrupted countries are at the top. In Kenya, it
has been found that the most bribes are paid by urban residents which is related to some of the
smallest bribes which is the 41% of the total value (The War Against Corruption in Kenya,
2022). The corruption on a larger scale is considered to be one of the two regimes that is helpful
for the criticism of their involvement. Nathan and Jackob, (2019) also added that despite having
market reforms in this country in many business surveys it was found that the corruption is very
widely spread and the companies are frequently encountering the demands for bribes and
informal payments to get rid of the things. In this country the public service industries are the
ones which have been facing the most corruption.
Along with another factor evaluated to be creating major impact over the business
expansion was the strategies of the competitors. This is pertaining to the fact that when the
existing competition will be affecting the expansion to Kenya very much. The reason underlying
this fact is that the competition reduces the number of consumers of the company. hence, it is
very necessary for the company that they first evaluate the strategies of competitor and after that
only they must make strategies for entering into Kenya
Making recommendation to the company
With the above analysis some of the recommendation for the company to improve
expansion in Kenya is as follows-
 The first thing the company must work is on effective market research. this is pertaining
to the fact that it will assist the company in developing knowledge relating to latest trends
which are prevailing in Kenya.

 Along with this another strategy recommended to the company is that they must evaluate
the different land and then only finalise the one. This is necessary for the reason that
there are many different options for land at different rates. Hence, for this it is necessary
for the company that they must evaluate each and evert land and then only final the one
best suitable.
 Moreover, it is advisable to the company that they must analyse and evaluate the different
sources of finance and optimally utilise all the sources of finance. This is because of the
reason that without finance any business activity cannot be performed. Hence, for
entering into Kenya the company must evaluate all the sources of finance and must select
the most advantageous source.
CONCLUSION
From this report it can be concluded that Kenya is the country that World Bank
Enterprise survey (WBES) would select after the comparative analysation of their data. This
report was able to explore the data through literature to gain a proper understanding of the
information related to the corruption and infrastructure in that place. This report has also selected
few questions which are used for the analysation of the information that has been provided and
will be required to judge the country on the basis of corruption and infrastructure. In this report
an analysation of the data which has been selected with relation to the questions will be used as
summarized with statistical understanding of the information. This report is also going to
highlight some key findings of this research and will therefore be able to understand the benefits
of their actions. From this report recommendation has been made for the possible impact of the
factors which are good for the success of the WBES.

REFERENCES
Books and Journals
Chege, S. M., Wang, D. and Suntu, S. L., 2020. Impact of information technology innovation on
firm performance in Kenya. Information Technology for Development. 26(2). pp.316-
345.
Hope, K. R., 2019. The police corruption “crime problem” in Kenya. Security Journal. 32(2).
pp.85-101.
Nathan, O. M. and Jackob, K. O., 2019. Stability analysis in a mathematical model of corruption
in Kenya. Asian Research Journal of Mathematics. 15(4). pp.1-15.
Nizaeva, M. and Coşkun, A., 2018. Determinants of the financing obstacles faced by SMEs: An
empirical study of emerging economies. Journal of Economic and Social Studies. 7(2).
p.81.
Noshad, M. and et.al., 2019. Performance and Obstacles of SMEs: An Empirical Evidence from
BRICS Countries. iRASD Journal of Economics. 1(2). pp.113-131.
Ondiba, H. A. and Matsui, K., 2019. Social attributes and factors influencing entrepreneurial
behaviors among rural women in Kakamega County, Kenya. Journal of Global
Entrepreneurship Research. 9(1). pp.1-10.
Oudgou, M., 2021. Financial and non-financial obstacles to innovation: Empirical evidence at
the firm level in the MENA region. Journal of Open Innovation: Technology, Market,
and Complexity. 7(1). p.28.
Online
The War Against Corruption in Kenya. 2022. [Online]. Available through: <
https://www.opensocietyfoundations.org/voices/war-against-corruption-kenya >