Kenyan Vote Should Support Growth of Small Business—Expert
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in Issue 2/17
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In Summary: The forthcoming Kenyan general election should boost the growth and development of small & medium Businesses as a catalyst for economic growth and job creation. SMEs are the engines of job creation and the most efficient vehicle for redistributing and creating prosperity for the benefit of ordinary people. In Kenya, SMEs deserve a special place in government policy because they contribute up to 80 percent of jobs in the country. Kenya’s GDP is expected to expand by around 6% this year, a right track for growth in an environment where Small & Medium Businesses should flourish.
Nairobi, Kenya—the forthcoming Kenyan general election should focus on boosting the growth and development of small & medium Businesses as a catalyst for economic growth and job creation, a leading corporate executive in the largest East African economy has said. The general elections in Kenya will be held on 8 August this year. “The parties that emerge as winner of the forthcoming election in Kenya has an opportunity to supercharge job creation and economic growth by adopting policies that help small & medium Businesses thrive,” Nikki Summers, the Regional Director for Sage in East Africa said in a statement. Sage is the market and technology leader for integrated accounting, HR & payroll, and payment systems in East Africa. She said that the next government will have a strong framework and foundation to build on following years of state investment in creating an enabling environment for entrepreneurs and business builders
“With GDP expected to expand by around 6% this year, Kenya is on the right track for growth,” Nikki Summers said in a press release. “Improving the ease of doing business and following sound macro-economic policies will help ensure that this pace of growth continues, also offering an environment where Small & Medium Businesses can flourish,” she said. Summers says SMEs "deserve a special place in government policy because they contribute up to 80 percent of jobs in an emerging economy such as Kenya. As important as large infrastructure projects are, SMEs are the engines of job creation and the most efficient vehicle for redistributing and creating prosperity for the benefit of ordinary people, she adds.
“The new government should continue to follow the Kenya Vision 2030 blueprint, which recognizes the crucial role of micro, small and medium business in industrial development,” summers said. “It should also look at ways of strengthening its various small business funding efforts such as Uwezo Fund and the Youth and Women Enterprise Fund, since access to financing remains one of the most significant challenges for entrepreneurs and business builders.”
About 2.2 million micro small and medium enterprises (MSMEs) shut down in the last five years, according to the Kenya National Bureau of Statistics (KNBS). Some 30% reported that shortage of operating funds was the reason for their closure, highlighting the importance of sustainable financing in ensuring a healthy environment for small businesses. “We also believe that technology could play a role in improving the sustainability of small Kenyan businesses and that government could encourage uptake of accounting solutions,” Ms. Nikki summers said. “Accounting and payroll software could help entrepreneurs keep more accurate records, comply more easily with government and tax regulations and gain better visibility into financial performance. This could, in turn, improve their financial planning and their ability to manage cash flow. she said.
Ms. Nikki Summers said that the policy implemented by the current government that emphasizes the entrenchment of ‘Buy-Kenya-Build-Kenya’ in public procurement is a step in the right direction. “The procurement budget is one of the best tools government can use to help develop emerging businesses,” she adds. “By giving small businesses preferential treatment in tenders, paying them quickly for work they do, and helping them develop skills, government can help them grow their businesses to the next level.” She recommended that there should also be closer collaboration between small business forums, big business (including multinationals) and government in nurturing the small business sector.
“We at Sage would welcome working with other large companies and government to create forums for education, recognizing and rewarding small businesses,” summers said. “Mentoring programmers, where business builders can learn from established entrepreneurs and businesspeople, as well as platforms that connect small businesses to big business and government, could all help smaller businesses to grow and thrive,” she said.
Source: CIO East Africa - Business Technology Leadership.