Challenges of Running a Business in Kenya include both a possibility of success as well as failure. Irrespective of the size of the business, a simple management mistake is likely to lead to sure death of an enterprise hence no opportunity to learn from its past mistakes. Potential clients perceive the Challenges of Running a Business in Kenya as lacking the ability to provide quality services and are unable to satisfy more than one critical project simultaneously. The challenges of running a Business in Kenya include,
- Improper Financing,
- Lack of Experience
- Lack of Education
- Poor Security
Competition has emerged to be one of the Challenges of Running a Business in Kenya. Large scale companies tend to attract more of the clients in their area of specialization. This poses as a challenge because small business owners spend a lot of time fighting for the clients’ attention and this time could have been used in expanding the businesses.
Infrastructure as one of the Challenges of Running a Business in Kenya
Infrastructure as one of the Challenges of Running a Business in Kenya. It relates to provision of access roads, adequate power, water, sewerage and telecommunication which has been a major constraint in the development of Business in Kenya.
Improper Financing as one of the Challenges of Running a Business in Kenya
Improper Financing is yet one of the Challenges of Running a Business in Kenya. Most of these owners lack enough capital to run their business and also lack of collateral to give to banks when they need to take loans.
Lack of Experience as one of the Challenges of Running a Business in Kenya
Lack of Experience as one of the Challenges of Running a Business in Kenya.There is need to improve ways of gathering customer information for the purpose of personalized marketing and service. The more a business owner knows about his or her customers, the better they can meet their needs, thus the more successful a business will be.
Lack of Education as one of the Challenges of Running a Business In kenya
Lack of Education is one of the Challenges of Running a Business in Kenya. Entrepreneurs with larger stocks of human capital, in terms of education and vocational training, are better placed to adapt their enterprises to constantly changing business environments. Only a small proportion of the business owners have reached university level or above. It can be proved that Business owners in Kenya are dominated by people with relatively low levels of education.
Hawkers as one of the Challenges of Running a Business in Kenya
Hawkers once again pose as one of the Challenges to Running a Business in Kenya their businesses. As a response to this challenge, business owners have been forced to sell cheaper than the hawkers. Competing with hawkers on price is debatable since hawkers are known to sell cheaply. Selling of a variety of goods was also said to be a strategy employed by small businesses to counter the challenge posed by hawkers.
Poor security as one of the Challenges of Running a Business in Kenya
Security threats pose as one of the Challenges of Running a Business in Kenya and many business owners and managers employ various means to help prevent or deter would-be criminals. They are forced to make use of security firms or guards to safeguard their businesses which can be very expensive. Most of them close early to avoid thugs while others opt to carry their stocks home while some sleep in their business premises as a security measure. This implies higher cost of doing business as they respond to the security challenges.
Business Training in Kenya analyses further challenges.
Conclusion on Challenges of Running a Business in Kenya
First Businesses in Kenya should have a ‘global outlook’. Businesses of all sizes across the globe can interact and share information, technology and products.
Business in Kenya should consider what global trends are affecting availability of resources, increasing or decreasing demand for products or service and where there is an unfilled need one might be able to meet.
There is also need to get trained in an area that is relevant to the business carried. This survey has clearly shown managers with relevant training run successful businesses compared to their untrained counterparts.
This helps one understand more about Running a Business in Kenya