Pamela Mutembei is the Managing Director of The Walker Group Limited and here are her thoughts on the Importance of boosting small and medium sized enterprises (SMEs).
“The Government’s commitment to boost small and growing businesses is indeed one of the key pathways to economic recovery, a couple of thoughts.
-Access to funding: The Hustler Fund provides small businesses with access to capital, which they can use to invest in their operations and grow their companies. This can help small businesses overcome financial barriers and expand their operations. Access to funding has been a great impediment to business growth big or small business in many financial categorizations whether to the youth, women, small traders etc due to a myriad of reasons like negative listing, lack of collateral, awareness, and others and this is quite welcome. no matter the challenges that come with this funding like distribution, amounts disbursed and collections and recovery thereof it’s a paradigm shift to how the finance industry has been and its greatly welcomed.
-Entrepreneurial development: The Hustler Fund also indicates that it will provide training and mentorship opportunities for small business owners, which can help them develop the skills and knowledge they need to run and grow successful companies.
-Job creation: Small and growing businesses are often major drivers of job creation in developing economies. By supporting these companies, the government can help create new employment opportunities and reduce unemployment.with over 7million SGB’s across the country these Small & growing business employ over 14million people and in supporting them we then see why its paramount that they get all the support required.
Economic growth: Small and growing businesses can also play a key role in driving economic growth by increasing productivity and innovation. By supporting these companies, the government can help spur economic development and boost the overall performance of the economy.
Poverty reduction: Small and growing businesses often operate in low-income areas and employ low-skilled workers. By supporting these companies, the government can help reduce poverty and improve the livelihoods of people living in these areas.
As a business thought leader, one perspective on the recent policy changes by the Kenyan Cabinet Secretary of Treasury to end the criminalization of small enterprises such as hawkers is that it is a positive step towards creating a more inclusive and supportive environment for small businesses in the country. This can help these businesses grow and contribute to the economy, while also providing employment and income opportunities for many people. I believe a mechanism to register all businesses will also enhance revenue collection for counties and consequently the country as in contrast the over 7 million small business in the country only about 1.5 million have formal registration.
One idea that County governments in Kenya can utilize to secure trading locations for small scale traders and hawkers is to establish designated marketplaces or vending zones. These areas can be designated specifically for small businesses, and can be equipped with the necessary infrastructure and services to support their operations. This can include things like shelter, sanitation facilities, and security.
Additionally, the County government can work with the private sector and local community organizations to provide training and mentorship programs for small business owners. This can help them develop the skills and knowledge they need to run and grow successful companies, and can help them navigate the challenges of running a small business.
Finally, the County government can work with the National government to develop policies and regulations that are supportive of small businesses and that help create a level playing field for all businesses. This can help ensure that small businesses are not unfairly disadvantaged and can compete effectively with larger businesses.
