Small Business Challenges in Kenya are the reason why many entrepreneurs are finding it hard to continue doing business. The environment in Kenya is getting better for small businesses and the entrepreneurs at large and it is easy now to start your business without many legal procedures. The financial sector has also developed strategies that will help to minimize the Small Business Challenges in Kenya. Business Training in Kenya has more articles.
Common Small Business Challenges in Kenya
It is commonly known that Small Business Challenges in Kenya affect entrepreneurs to a point that they are not able to expand or operate their businesses profitably. The ripple effect falls on the development of the Kenyan economy. The major Small Business Challenges in Kenya are;
- Lack of managerial skills is a major hindrance to the success of SMEs. Strategic management is very important for the success of the business. However, many entrepreneurs lack the analytical skill of operating their small businesses and they depend on the opportunistic method of determining what the business requires. The results of the poor managerial skills lead to unpreparedness to problems and changes facing the business sector, which can collapse the SMEs.
- Lack of credit or capital is the key Small Business Challenges in Kenya. Many entrepreneurs use alternate method of operating their businesses because they lack enough money to expand or obtain new business technology.
- National guiding principle and the regulatory setting in Kenya affect many SMEs in different ways. Some of the policies passed by the local government or the KRA adversely affect businesses. Because of the difficulty in getting some businesses requirement such as licenses, corrupt environment is created which worsens things for growing entrepreneurs.
- Technological diversity is becoming a challenge to many SMEs because they are unable to move with the changing business world. Most of them lack knowledge on new technology and others lack capital to bring the technology in their businesses.
- Marketing skills and the poor infrastructure are Small Business Challenges in Kenya that mostly affect the rural businesses. SMEs are unable to make sales as to their capacity.
Recommendations to Small Business Challenges in Kenya
Unless there are solutions to Small Business Challenges in Kenya, entrepreneurs will remain at the trying point of doing business and they will never grow. The following are the suggested recommendations for the problems facing the SMEs;
- Government must address the infrastructure and the technology integration issue
- Support institutes that can offer business information to SMEs should be established
- Managerial training institutes should be established for entrepreneurs
- Favorable and less strict business policy should be established by the Kenyan government
- Financial loans and credits should be made less expensive with few requirements for entrepreneurs
Small Business Challenges in Kenya: Reasons for the support of the SMEs
Entrepreneurs should be helped to fight Small Business Challenges in Kenya for their own advantage and the benefit of the country at large. The Kenyan economy is mainly supported by the SMEs. Therefore, the economy will expand if the SMEs are given more chance to develop.
Secondly, the level of unemployment is reduced if more people are supported to start their own businesses. More importantly, the dependency level in Kenya will reduce. SMEs are the best way for the country to develop infrastructure and adapt new technology. Individuals’ living standards is improved because of SMEs. Graduates are also taught not to depend on employment since they can start their own businesses.
Conclusion in Small Business Challenges in Kenya
Small Business Challenges in Kenya may affect the success of many businesses and the development of the Kenyan economy. There are many advantages that our country will get if at all the SMEs are supported. Therefore, the government should put measure to prevent Small Business Challenges in Kenya.
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