By Dipo Olowookere
Regional Director for Sage in East Africa, Ms Nikki Summers, has pointed out that any party that emerges winner in the general elections in Kenya taking place in August 8 2017 has an opportunity to supercharge job creation and economic growth by adopting policies that help Small & Medium Businesses to thrive.
Ms Summers noted 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.
She said, “With GDP expected to expand by around 6 percent this year, Kenya is on the right track for growth,” adding that “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.”
Sage is the market and technology leader for integrated accounting, HR & payroll, and payment systems.
Ms Summers says further that Small & Medium Businesses deserve a special place in government policy because they contribute up to 80% of jobs in an emerging economy such as Kenya.
As important as large infrastructure projects are, Small & Medium Businesses 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 recognises the crucial role of micro, small and medium business in industrial development,” says Summers. “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.”
According to the Kenya National Bureau of Statistics (KNBS), around 2.2 million micro small and medium enterprises (MSMEs) shut down in the last five years.
Some 30 percent 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,” says Summers. “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.”
Adedapo Adesanya