Thread by @SokoAnalyst

Research suggests that micro businesses and SMEs account for 95 percent of firms in most countries, create jobs, contribute to GDP, aid industrial development, satisfy local demand for services, innovate and support large firms with inputs and services #SMEHelpingHand

In Africa, SMEs create 80 percent of employment, establishes a new middle class and stimulates the demand for new goods and services. The region is set to have a decline in economic growth with less than 3 percent average growth forecast for 2022 #SMEHelpingHand

Nevertheless, pockets of countries in Africa, mainly non-resource intensive countries such as Côte d’Ivoire, Ethiopia, Kenya and Senegal, are foreseen to continue to grow at more than 6 percent as the economies recover from COVID-19. Ethiopia has a RED FLAG given the civil strife

According to the IMF, growth in these countries has been supported by infrastructure investment efforts and strong private consumption. Many African countries are turning to entrepreneurs to support future growth #SMEHelpingHand

With entrepreneurship playing a vital role in the development of a vibrant and formal small business-sized sector, there is much scope for SMEs to support African growth #SMEHelpingHand

In Kenya, SMEs play a key role in economic development and job creation. In 2021, POST COVID-19, 96% of jobs created were dominated by these enterprises #SMEHelpingHand

The term micro and small enterprises (MSEs) or micro, small and medium enterprises (MSMEs), is used to refer to SMEs in Kenya and under the Micro and Small Enterprise Act of 2012, micro enterprises have a maximum annual turnover of KES 500,000 and employ less than 10 people.

Small enterprises have between KES 500,000 & 5M annual turnover and employ 10-49 people. However, medium enterprises are not covered under the act, but have been reported as comprising of enterprises with a turnover of between KES 5M and 800 million and employing 50-99 employees

Most SMEs fall under the informal sector and by extension, the term informal refers to people in self-employment or small-scale industries #SMEHelpingHand

The informal sector is estimated to constitute 98 percent of business in Kenya, contributing 30% of jobs and 3 percent of Kenya’s GDP. The government recognizes the role of the informal sector and seeks ways to integrate these businesses into the formal sector #SMEHelpingHand

The following are challenges faced by SMEs;
1. Lack of adequate managerial training.
2. Lack of adequate finance and limited access to credit.
3. Rapid Technology Changes.
4. New Laws & Regulations. Double legislation at National & County Level.
5. Inadequate Knowledge & Skills.

Inclusive economic growth and development requires a serious consideration of the opportunities and challenges faced by SMEs. Join us this evening as we delve into SME issues. What are your thoughts? @sokodirectory @JimnahMbaru