• August 6th, 2016
  • Posted by athanne

Rural Entrepreneurs in Kenya

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Rural Entrepreneurs in Kenya  are the key to economic growth because they are generating employment. But  Entrepreneurs -owned businesses could contribute more than what they are doing today. A growing amount of research shows that countries that fail to address gender barriers are losing out on significant economic growth. Without increased attention to the gender dimensions of economic development, Kenya is therefore unlikely to meet its growth targets. This therefore demonstrates that addressing gender barriers in Kenya could generate significant economic growth for the country. The Kenyan government recognizes that Rural  Entrepreneurs in Kenya have not been on an equal footing when it comes to their access to opportunities and assets but it has yet to effectively address the barriers facing  Entrepreneurs  in business. This issues are als

also raised in Business Training in Kenya.

Barriers facing Rural Entrepreneurs in Kenya

Rural Entrepreneurs in Kenya face certain barriers in the business environment which have a negative effect on them.

The Barriers include;

  • Managing Employees,
  • Lack of Education,
  • Inadequate Finance,
  • Discrimination,
  • Poor Access to Justice.
  • Discrimination,
  • Dealing with the City Council,
  • Lack of Property Rights,

Managing Employees as a Barrier facing Rural Entrepreneurs in Kenya

 

 Rural Entrepreneurs in Kenya Managing employees is another challenge that Rural  Entrepreneurs in Kenya. Finding and retaining good employees is essential for the success of a business, but can be difficult for  Entrepreneurs   in Kenya. Since  Rural Entrepreneurs  businesses tend to be smaller, they are often less likely to provide job security and retain good talent. Some  Entrepreneurs  find that they are not taken seriously by their employees, especially in non-traditional sectors, and they have to make a special effort to win their respect.

Lack of Education as a Barrier facing Rural Entrepreneurs in Kenya

Lower education levels puts Rural  Entrepreneurs in Kenya at a disadvantage compared to men. While the gender gap in primary education in Kenya has decreased in recent years, the gap remains high at secondary and tertiary education levels. Lower education does not emphasize entrepreneurship skills. It decreases the chances that  Entrepreneurs  will have the knowledge needed to excel in business, and thereby contribute to the country’s overall economic growth.

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 Inadequate Finance as a Barrier facing Rural Entrepreneurs in Kenya

Another barrier facing Rural Entrepreneurs in Kenya is access to finance is an issue is because of requirements of collateral. In Kenya only 1% of  Entrepreneurs  own property and that makes it very difficult for  Entrepreneurs  to provide collateral for banks. We have to look for different instruments to address access to finance issues for  Entrepreneurs , like mentoring them, helping them prepare proposals for bank funding, and even providing a guarantee for the banks.

Discrimination as a Barrier facing Rural Entrepreneurs in Kenya

Another challenge that Rural Entrepreneurs in Kenya face is discrimination. Even when  Entrepreneurs  entrepreneurs do approach banks for financing, they tend to face discrimination.  Entrepreneurs  report that bank officials tend to ignore them in meetings and prefer speaking to their husbands or male business partners. The fact that banks engage in gender bias prevents many  Entrepreneurs  from even approaching them. Some  Entrepreneurs  get so discouraged that they do not bother to seek bank financing and turn instead to informal savings groups.

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Poor Access to Justice as a Barrier facing Rural Entrepreneurs in Kenya

Access to justice is essential for ensuring smooth business operations, and it spans issues such as enforcing contracts and employment disputes. Yet Rural Entrepreneurs in Kenya have difficulties when accessing justice. Using the formal courts in Kenya can be costly, complex, and time consuming for entrepreneurs. For  Entrepreneurs  who are burdened with their multiple responsibilities in the household and at work and who do not have the know-how to navigate the government process, dealing with the complicated and often corrupt bureaucracy is another reason for avoiding the process.

Managing Employees as a Barrier facing Rural Entrepreneurs in Kenya

Managing employees is another challenge that Rural Entrepreneurs in Kenya. Finding and retaining good employees is essential for the success of a business, but can be difficult for  Rural  Entrepreneurs in Kenya. Since  Rural Entrepreneurs in Kenya. Rural  Entrepreneurs in Kenya -owned businesses tend to be smaller, they are often less likely to provide job security and retain good talent. Some  Entrepreneurs  find that they are not taken seriously by their employees, especially in non-traditional sectors, and they have to make a special effort to win their respect.

Dealing with the City Council as a Barrier facing Rural Entrepreneurs in Kenya

City Council has proved to be a very big challenge to Rural Entrepreneurs in Kenya. The licenses are too many and the cost too much. Being a woman seems to exaggerate that fact since most  Entrepreneurs  are harassed by the city council officials when they come to inspect the business premises. Moreover,  Entrepreneurs  may be less likely to meet and negotiate bribes with the predominantly male council officials. Business licensing is an issue for many  Entrepreneurs  entrepreneurs who perceive the process as lengthy and complex

Lack of Property Rights as a Barrier facing Rural Entrepreneurs in Kenya

Lack of Property Rights is a major issue that affects Rural Entrepreneurs in Kenya. It prevents business  Entrepreneurs  from expanding their businesses.   Entrepreneurs  accept that they should not own property themselves. The propensity is that it should be jointly owned. This lack of land and property is a significant barrier for Kenyan business Entrepreneurs . It translates directly into  Entrepreneurs ’s inability to access bank financing needed for their business.

Conclusion on Rural Entrepreneurs in Kenya

Rural Entrepreneurs in Kenya need to go for training programs in order to know how to run their businesses well.

Micro finance institutions should portray a non gender based environment in order to stimulate  Rural  Entrepreneurs in Kenya to do business with them.

Rural  Entrepreneurs in Kenya should be taught on the value of being independent. This will stimulate them to do things on their own like acquiring property.

City Council officials should refrain from harassing Rural Entrepreneurs in Kenya who are in business.

With the information provided above one is able to understand more about Rural Entrepreneurs in Kenya

 

 

 

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