Volume 16, Issue
According to a report published in the journal of Economic Literature in the year about the manufacturing firms in developing countries, the share of SMEs in employment tends to be higher in developing countries, which are typically more focused on small-scale production.
As such, policy provisions remain fundamental in propelling these enterprises towards self-sustenance and realization of their full potentials in contributing towards economic growth.
In Kenya for instance, SME operation cut across almost all sectors of the economy and sustain majority of households. This was well recognized by theNational Budget. Their operations are more labour intensive than the larger manufacturers.
The development of the private sector varies greatly throughout Africa. This could be attributed to fairly modern financial systems and clear government policies in favor of private enterprise.
The article observes that in the Democratic Republic of Congo, most SMEs went bankrupt in the s as a result of the looting in and during the civil war. In Congo,Equatorial Guinea,Gabon and Chad, the dominance of oil has slowed the emergence of non-oil businesses.
Between these two extremes,Senegal and Kenyahave created conditions for private-sector growth but are still held back by an inadequate financial system and lack of sound policy provisions. In Kenya, SMEs have continued to face challenges related to accessing credit.
Commercial banks are still bargaining with the issue of collateral. Due to limited land ownership status in Kenya Property Rights in Kenyaentrepreneurs are unable to provide the necessary collateral needed for loan requests.
According to ILO report published in Despite the fact that some provisions have been made towards gender mainstreaming, there is much more that could be put in place. The journey towards SME policy formulation by the Kenyan government has been long. Economic Management for Renewed Growth. Towards the Year This report set out the mechanisms for removing constraints to growth of the MSE sector.
The report was reviewed inleading to a new policy framework that provides a balanced focus to SME development in line with the national goals of fostering growth, employment creation, income generation, poverty reduction and industrialization.
However, though these efforts are commendable, these are but perhaps baby steps compared to the task that lies ahead, namely unlocking the full potential of the SME sector to spur and sustain economic growth.
For there to be long lasting changes, it is imperative for there to be concerted efforts starting at the policy level especially when it comes to issue identification and solution architecture. This is because, like in many developing countries, there have been considerable mountains of policy publications, data and research yet the problems still remain.
Realizing that the present grinding poverty does not give would be entrepreneurs the capacity to focus and upscale their enterprises since they are concerned with meeting their very basic needs — food, shelter and sustenance, reducing the divergence of policy proposals and the reality on the ground then, is perhaps the remaining policy challenge that stands in the way of Kenya reaping the full benefits other countries such as India and Brazil are currently enjoying as a result of a robust SME sector.
The Policy Challenge Kenyahas had a long history of economic leadership in East Africaas one of its largest and most advanced economies.
However, inconsistent efforts during the structural reforms era coupled with poor economic policies and state complicit corruption syndicates over the past decades have hemorrhaged development and growth significantly eroding the leadership at a time when other countries in the region have made significant strides.
The dichotomous policy perception of formal and informal business entities has also contributed to ineffective policies on the SME economy as merely-jua kali.
It was not until the beginning of that there was deliberate Government debate on the need to integrate the two sectors. At the time, analysis of the SME sector revealed that development and integration of both the informal and formal sectors has to a large extend been constrained by regulatory requirements.
Most of these requirements date back to the colonial period and have no relevance in independentKenya. There is not doubt that Small and medium-sized firms are the drivers of the Kenyan economy.
They employ about 7. But little has been understood about their operations, ownership, source of capital and the key challenges that they face as they propel growth of the Kenyan economy. This could be the reason why they should be supported to graduate from their current state.
Perhaps we should ask: For one, lack of insight on the sector has left policy makers, key support players such as financial institutions and others groping in the dark on how best to implement SME policies.
Key organs of government such as cabinet office, Parliament and Local Authorities concerned with policymaking have to grasp the role of government in SME advancement, and be aware of the impact new policies and laws impose on the operations of small enterprises. In doing this, the government establishes the institutional framework for business — rules of the game and ensures that promising enterprises receive appropriate incentives to facilitate efficient performance.
Such interventions have potential for mainstreaming the informal economy alongside larger formal enterprises. This was spurred with a deliberate policy priority focusing on reducing poverty and unemployment going hand in hand with accelerating economic growth.Kenya’s National Business Plan Competition MINISTRY OF INDUSTRIALIZATION JITIHADA PROJECT OFFICE Maple Court, 1st Floor, Westlands Road, Westlands Close, Opposite.
• Developed strategic plan for the department. • Instrumental in developing business plans for all the CBDs. • Chairman UMB sub-committee, “Risk Management JKUAT and all its Campuses.
• Member UMB sub-committee “Rehabilitation of JKUAT Hospital”. business plan for maize mill in kenya. maize milling business plan ugandaaitc. business plan for maize mill processing plant pdf, Rice bran and maize hulls are the main by . JITIHADA Business Plan Competition. Loans and Grants for Small and Big Business.
SEED Awards for Entrepreneurship. Shuttleworth Foundation Fellowships. Social Innovation in Health Initiative. SPRING Accelerator. Swiss Re International ReSource Award. The Microinsurance Innovation Facility Research Grants.
Before and after my graduation from Kenyatta University(BCom),i have been a passionate thinker and believer in rural social change.I am a social entrepreneur winner who won prize of Jitihada ,Kenya's National Business Plan Competition;an integrated school serving rural disadvantaged poor ashio-midori.com ,i joined St Ann's College as.
This was a nation wide competition that was organized by the Nation media Company. It attracted over ideas. I was selected as among the best 10 finalists who benefited by receiving legal and advisory services through business forums and showcase selected ideas in a special pullout in the Business Daily and a TV Show on ashio-midori.com: Laboratory Analyst at Rio Tinto.