Kenya’s economy has been going through lean times.
Just to mention, the depreciation of the shilling, debts, and irregular increases in food and fuel prices are some factors affecting our economy negatively.
To heal all these, it’s essential to think of different mechanisms that can be put into place to spur economic development.
One of them is by supporting small and medium enterprises.
We know that SMEs play a crucial role in developing an economy.
If invested well, small and medium-sized enterprises can create more jobs and support communities.
When more jobs are created, tax revenue will increase, which can be used to sustain local businesses and their services.
Small-sized enterprises, when supported well, can further drive innovation which is always the lifeblood of any economy.
Not to forget, SMEs also significantly contribute to the increase of gross domestic product.
However, all these multiple benefits of SMEs cannot occur independently.
The government has a vital role in encouraging the growth of these enterprises.
Primarily, one of the significant obstacles that SMEs face is financial constraints.
These enterprises suffer from getting the necessary finances for growth and expansion. In business, access to finance is always a driving factor.
Lack of access to these finances and credits limits the growth of SMEs.
In most cases in our country, most regular banks do not adequately provide SMEs with capital.
When a company, by luck, gets a tender somewhere, the tenders usually demand financial requirements that become unrealistic for SMEs.
All these are some of the operational challenges that our SMEs face.
SMEs also suffer from market challenges. They find it difficult to get an opportunity to showcase their products and services.
The new government can solve both financial and market challenges. It should encourage local banks to work closely with SMEs.
The government should also lessen restrictions on the registration and licensing of small enterprises.
Moreover, the government should offer SMEs tenders, especially for those that are qualified.
On the part of market exposure; our government should prioritise organising various events that will enable SMEs to showcase their products and services.
Finally, the government should ensure all the infrastructure that will promote business success are in good condition.
Student Maasai Mara University
