Small and Medium-sized Enterprises need to embrace research more as a tool for investment for growth rather than a space to sought first whenever a case of cost cutting arises.
This according to Research PLUS Africa founder and CEO Mokeira Masita.
She was speaking during the firm's 10 year anniversary celebration in Nairobi yesterday.
She noted that research uptake by SMEs in Kenya is not that commendable, but the space has began to change over the last few years.
"Appreciation for data and insight is beginning to grow among the SMEs and it is no longer the preserve of large and already established multinationals," Masita said.
The call comes at a time small businesses are grappling with high cost of doing business on the back of rising inflation, higher exchange rates, triggering higher import costs and the runaway interest rates pointing towards expensive loans.
Masita however reiterates that even during these hard times for businesses, SMEs should not look at research expenditure as a low hanging fruit for cost-cutting.
"Even at times when scaling down on operational costs is needed, these SMEs need well informed decisions on what sector to actually scale down, and this too requires data and insight from well organised research."
SMEs have been noted to be an important player in socio-economic growth both locally and regionally.
Data by the Central Bank of Kenya's (CBK) from the recent National Economic Survey report, shows SMEs account for 98 per cent of all businesses in Kenya, create 30 per cent of jobs annually, and contribute three per cent of GDP.
However, research shows that the enterprises face multiple challenges impending their survival and success, as almost 80 per cent of African SMEs are said to fail within the first five years.
Inadequate infrastructure and connectivity, lack of business enabler tools, lack of capital and digital skills are some of the potential roadblocks for SMEs, according to Masita.
"There is therefore a need to enable tools that the businesses can use to collect and manage data that can be used to provide valuable business insights to guide decision-making, and research is key."
The African-based research organisation also unveiled a collaborative platform dubbed 'Research Spring' that aims at empowering African researchers and revolutionising the research landscape across the continent.
It further seeks to serve as a dynamic vehicle for originating cutting-edge research in Africa and further foster collaboration and co-creation among all African researchers.
"This is to produce impactful research that will shape the future of the African research and evaluation landscape," Masita said.
She added that by bringing together diverse stakeholders and empowering African researchers, there could be a significant drive of advancements in research and contribute to socio-economic growth in the country and Africa at large.
"Africa only contributes one per cent of the total global investment value on research," she said.
