Money? Does it Actually Hinder Entrepreneurship Growth In Kenya or…

Whoever said that money is a requirement in entrepreneurship growth should now be revisiting the assertion.That may seemingly be so if some interesting recent developments are anything to go by. Indeed, they have vindicated my earlier assertions on entrepreneurship.  Money as many Kenyans would want us to believe  may not be a key entrepreneurship challenge in this country. Imagine, the Government is now busy trying to improve loan uptake especially amongst Youth and Women entrepreneurs.  Indeed, trainers and mentors have in the recent past been dispatched to each and every constituency only for that purpose.

When I thought of venturing into consulting, I first grasped entrepreneurship fundamentals before eventually evolving into corporate entrepreneurship training and consulting. Alongside, I carried out a thorough research on global entrepreneurship trends.

During the research process, I encountered a rather sad state of affairs upon zeroing on the African and particularly Kenyan context. Perhaps, the insights are what led to an invitation, whereby I presented the research findings in an international entrepreneurship conference themed “Fostering SMES and Entrepreneurship in Africa.” The same took place in Nairobi, early in this new millennium. Moreover, the research was later published in an international business journal, therefore spreading the message even further.

Meanwhile, it had come to light that entrepreneurial culture is not engrained in us at all. It is not even nurtured by the school system. It is no wonder then that most people venture into business not by choice, but rather by default. This generally happens as a last result, especially upon failing to secure or continue in formal employment. Thus, no amount of information on radio, TV as well as writing, mentoring and so forth could sway the attitudes of my immediate targets.

Perhaps this was so because; when entrepreneurship becomes largely viewed as a fallback, its future prospects become dimmed.  It may not be surprising then that the success rate has been rather discouraging.  Indeed, only 30 % of starts up ventures get to the 3rd Year, whereas another 15 % succumb   by the 5th year.

However, it is important to distinguish between business activities and entrepreneurship. The former involves exchange of goods and services in return for monetary value. On the other hand, entrepreneurship   involves value addition either to the goods or services or the way they are delivered to the consumers.  So, the same must therefore entail creativity and innovation as well as a high degree of risk sometimes. But, what really happens?

Actually, most people especially in the small business sector are more focused towards buying and selling existing goods and services. That therefore precludes differentiation or more appropriately the branding process. But, why at all bother about this background?

It may now be easy to appreciate why the government is on overdrive as earlier indicated. Firstly, it is increasingly being realized that money is not always the challenge that prohibits people from venturing into business. In the meantime, memories of budget Speech for the year 2006 are still fresh in mind. There was heavy and persistent debate ranging in the media, concerning the then newly created Youth Enterprise Development Fund. As a stake holder of our national affairs, I felt duty bound to contribute as well.

However, my contribution did not happen through the press even though it finally ended up there. Instead, I visited the Ministry of the Youth Affairs, armed with a structured 6 page plan of action that stipulated exactly how to initiate and see through, this important national project.

The senior officer who received me on behalf of the Permanent Secretary was at pains to comprehend my views. “What are you up-to? The problem with youth Entrepreneurship in this country is lack of money.  We only need to give them money after, which they venture into business,” said the officer. Perplexed by his views, I sought to know from him what kind of businesses they would venture into.  Eventually, we agreed that he was better off first reading my documents in readiness for a subsequent review meeting.

Consequently, at the meeting held two weeks thereafter, the tune was different. Through the officer, the government had now understood the impact of allocating KES One billion to youth entrepreneurship development. It had also appreciated similar cases in Africa some of which were successful while others were not. Through the same concept, the government was able to conceptualize the Youth Enterprise Development Fund Board, as well as implementing workable strategies of disbursing the new fund.

Above all, it became clear that money was not the main challenge for youth entrepreneurship as such. Is it not surprising then that a fully fledged training department was set up in the Ministry of Youth Affairs, based on the same concept paper? I am sure the initial director of the department, can affirm the assertion on this job that is up-to now held in high esteems. Ideally, as entrepreneurship flourishes in line with expected achievements of vision 2030, this writer is proud to be part of the success, which is geared towards taking the country to new levels of development.

Another major development worth noting is the proposed new education system that presupposes a 6-6-3 curriculum of education. Reading through the document, one notices a great paradigm shift. In summary, the education orientation may change drastically. Talents and skills development are likely to be highly emphasized compared to the 8-4-4 system that has been more inclined towards passing of examinations. The same largely prepares candidates for formal employment jobs.

In the new order, vocational training and tertiary institutions are likely to find their footing once more, especially aiming to harness and develop inevitable talent. That may give way to nurturing of entrepreneurship right through the school system. Let us hope and pray that the concerned leadership will embrace the requisite recommendations which are still being vetoed by various stakeholders.

Nevertheless, the new shifts could for ever change the entrepreneurship direction, in the best interests of national development. For now, it can only be hoped that the spirit of entrepreneurship will in due course be a blessing to all citizens of this great nation.May the spirit of entrepreneurship be with you as well.

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