Entrepreneurship Hindrances in Kenya affect businesses in Kenya. It affects their growth and profitability .Their ability to contribute towards development is diminished .This blog briefly discuses the challenges.
Entrepreneurship Hindrances in Kenya
The Entrepreneurship Hindrances in Kenya include the following;
- Lack of Business Training and Experience,
- Inadequate Education and Skills,
- Lack of Finance,
- National Policy and Regulatory Environment,
- Technological Change,
- Poor Infrastructure
- Scanty Markets information.
Lack of Business Training and Experience as one of the Entrepreneurship Hindrances in Kenya
Lack of Business Training and Experience is one of the Entrepreneurship Hindrances in Kenya. Many Business owners in Kenya or managers lack managerial training. Owners of businesses use a process of trial and error. This style is good for day to day operations of the business. However this does not work in the long run. This is only applicable at start up stage since a lot of creativity is needed then It cannot be applied when making complex decisions .Due to this Businesses in Kenya are not always prepared to face changes in the business environment and to plan appropriate changes in technology.
Inadequate Education and Skills is also one of the Entrepreneurship Hindrances in Kenya. Education and skills are needed to run businesses. Majority of the business owners in Kenya lack education and skills. The more educated and trained the more likely it is .to be successful for businesses to do well in Kenya, people need to be well informed in terms of skills and management. ICT businesses seem to be doing better. The businesses are run by people with at least college level education
Lack of Finance as one of the Entrepreneurship Hindrances in Kenya
Lack of Finance is one of the Entrepreneurship Hindrances in Kenya. Lack of access to Finance is a problem for Businesses in Kenya. It affects choice of technology this leads to use of inappropriate technology Sometimes an entrepreneur is forced to buy heavy, immovable equipment so that it can serve as collateral for the loan. There are undeveloped capital markets which leave entrepreneurs with self-financing or borrowing from friends or relatives as an alternative. Long-term Financing is hard to access. The financial challenges are high cost of credit, high bank charges and fees.
National Policy and Regulatory Environment as one of the Entrepreneurship Hindrances in Kenya
National Policy and Regulatory Environment is also one of the Entrepreneurship Hindrances in Kenya. Business Environment is among the key factors that affect the growth of Businesses in Kenya. Unpredictable government policies coupled with ‘grand corruption,’ high taxation rates, are a great threat.
Technological Change as one of the Entrepreneurship Hindrances in Kenya
Technological Change is of the Entrepreneurship Hindrances in Kenya. Business entrepreneurs appear to be unfamiliar with new technologies. Many are unaware of this technology, Sometimes, it is not either locally available or not affordable or not situated to local conditions.
Poor Infrastructure as one of the Entrepreneurship Hindrances in Kenya
Poor Infrastructure is yet another of the Entrepreneurship Hindrances in Kenya. . There are poor roads, inadequate electricity supply.
Scanty Information as one of the Entrepreneurship Hindrances in Kenya
Scanty Markets Information is another of the Entrepreneurship Hindrances in Kenya. There is a vast amount of trade-related information available and the possibility of accessing national and international databases, but many business they are unable to interpret statistical data
Since there is vast amount of information and only lack of statistical knowledge to interpret and Internet connectivity, Businesses in Kenya need to be supported.
Read more in Business Training in Kenya.
Conclusion on Entrepreneurship Hindrances in Kenya
Policies should be developed o encourage and promote the development of local technologies.
There should be less reliance on imports.
There is evidence that Businesses in Kenya have the potential to initiate minor technological innovations to suit their circumstances. They need specific policy measures to ensure that technology services and infrastructure are provided.
Research and development institutions that are publicly funded should be encouraged to target the technology needs of Business Training in Kenya
There is need for a supportive policy to encourage the establishment of documentation centres and information networks to provide information to these businesses.
The government should come up with training centres for training managerial and technical courses for businesses. There should be business information centres.
The Government should come up with proper regulatory policies that are business friendly since many of what we have in Kenya, frustrates every effort of a business.
The Government should establish friendly l loaning system. This would include low interests rates to ensure the continuity of these businesses. They have the potentiality of transforming the economy of a crippling nation. As such, every effort should be made to boost their growth.
And thus the Entrepreneurship Hindrances in Kenya