SME's contributes 85 per cent of the county's employment opportunities- says Invest in Africa country director

Invest In Africa logo Image (file)

BY PETER KOMBE

Small and Medium-sized Enterprises SMEs directly contributes 85 percent of employment opportunities throughout the country, Invest In Africa country director Wangechi Muriuki has confirmed.

According to the director over 7.5 million SME’s operate informally.

She adds that due to this challenge SME’s cannot compete with big business entities.

“This forum is aimed at enhancing information in order to create awareness. This is a platform to showcase businesses and engage,” she said.

Speaking at the sidelines of an SME engagement forum in a Mombasa hotel on Wednesday Ms Muriuki said their informal nature makes them locked out of vast economic opportunities.

The forum was attended by over 40 SMEs across the six counties in the Coast region.

“We have several SMEs from Tana River, Kwale Taita Taveta Mombasa and Kilifi.”

Mombasa County executive in charge of Trade and Investment Fauz Rashid says the department is intending to conduct a research study of the SME’s sector.

He noted that the study will assist in developing business policies geared at enhancing economic growth.

“We have been working closely with the Kenya Association of Manufacturers and the Kenya National Chamber of Commerce and Industry to promote local products,” he explained.

The CEC pointed that the county government has digitized most businesses to facilitate service delivery.

He says the digitization of businesses has not only lessened the cost to SMEs but also deterred corruption.

Said Fauz “SMEs have contributed to creation of employment opportunities not in Mombasa County alone but the entire region as a whole,”

Mackson Mwango, Base Titanium Finance and Administration Manager lack of information still remains a challenge for SMEs in accessing finance.

He however says for any business to thrive communication is paramount.

According to him the company is committed to venture into business with focused and determined small and medium sized entities.

He says the company has jointly partnered with other business entities with a view of boosting economic growth.

He noted “We want how best we can work with SMEs. Communication is vital,”  

Women and Girls Empowerment Team leader Linda Shume says most SME’s work in monopoly.

According to her this hinders information sharing between various organizations.

“There is need to create linkages and partnerships as business entities. Some take too long repay the funds,” she noted.

She adds that the period between application and access of finance by SMEs is too long.

Johnson Nzai, an entrepreneur from Watamu cites a locked mindset, lack of finance and capital as a major setback amongst Coast locals.

He says the business environment in unconducive for a good number of SMEs.

“How shall we stem down the bureaucracy that has been existing. This is a major hindrance when we want to get into business,” he said.

Nzai further alleges existence of bureaucracy and elaborate business policy before one ventures into business.