Small and Medium Scale Enterprises (SME’s)are the backbone of the Kenyan economy and play a big role in job creation. However, out of an estimated 7.4 million SME’s only 1.6 million are licensed this is mostly due to the fact that the systems that have been put in place by both the national and county governments are sometimes punitive. Rather than nurturing these businesses so that they can grow, constant harassment by say county askaris even forces some to close. Other than business environment, another challenge faced by SME’s is the higher cost of capital than larger firms and more credit rationing.
It is in response to this that the Kenya Association of Manufacturers (KAM) in partnership with Trademark East Africa last week launched a Business Growth Program (BGP) 2017. This program is geared towards uplifting Small and Medium Enterprises. This will be achieved through providing them with access to markets, capacity building strategies for their growth and expansion, and support in advocacy for a more nurturing environment.
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The BGP will equip these enterprises with the required management systems and processes to enable them secure markets and also thrive. It will also allow participants to develop concrete business growth strategies, and formulate structures for implementation. The BGP consists of seven modules including financial and human resource management, market design and strategic supply chain management, among others.
According to the KAM CEO Phyllis Wakiaga, the purpose of the BGP is to create growth oriented enterprises. Through the program KAM will be able to facilitate and enable support to these businesses, that have specific sector issues.