SMEs Growth Factors Go Beyond Financing

Figure 1Financial service providers should tailor products beyond SME funding. FILE PHOTO | NMG

By Susan Situma

Without doubt, across all levels of development, small and medium enterprises (SMEs) are the engines of growth.

They create jobs, contribute to the gross domestic product, support industrial development, satisfy local demand, lead in innovations and support larger industries with inputs and services.

In Kenya, the SMEs have grown to a highly vibrant and dynamic sector of the Kenyan economy over the last few decades.

According to government estimates, there are about 1.56 million licensed and 5.85 million unlicensed businesses in both formal and informal sectors. These businesses engaged about 14.9 million persons in employment.

Politically, SMEs have been credited for helping to promote reforms. The sector plays a big role in tailoring and pushing for reforms that favor a level playing field. This is enabled by the fact that the small-business sector empowers and grows a strong middle class…Read more>>

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