Micro Small and Medium Enterprises (MSMEs) are the backbone of any growing economy worldwide. According to The Kenya Association of Manufacturers (KAM). MSMEs in Kenya account for 50% of all jobs, 70% of the total employment rate, and 50% of the country’s GDP. Even while MSMEs are crucial to the economy’s expansion, they still make little contribution. This is caused by insufficient funding, quick technological advancements, poor managerial training among other issues.
As the world marks International MSMEs day, KCIC Consulting Limited (KCL) has been on the verge of providing high-quality capacity building, value-added services, and access to critical resources for MSMEs in Africa. The institution works with MSMEs to enhance their technical capacities and influence their growth.600 million jobs will be needed in the next 15 years to absorb the growing global workforce. MSMEs are one of the main factors of economic growth. Without a robust and healthy MSME sector, this cannot be achieved.
James Mburu, Projects Coordinator at KCL highlights the need to emphasize MSMEs financing. “All enterprises start small and use internal funds but eventually, they need to grow. MSMEs will need external funding to grow, invest and acquire new technology to increase productivity. Without financing, they might be unable to expand and compete in regional and global markets,” said Mburu.
Over the years, KCL has been at the forefront of promoting and fostering the expansion and achievement of MSMEs. KCL offers these MSMEs various interventions to assist them in anticipating and meeting the requirements of both current and future generations. Mentorship and training programs are some treatments, and they help new and established enterprises in Africa. The proprietors of the firms are connected with the companies and guide them through the entrepreneurial process. This has had a favorable effect on SMEs, encouraging sustainable development.
“MSMEs make up most of the business in Kenya and contribute largely to the creation of employment. However, MSMEs counter a lot of challenges from costly registration and long processes, lack of capital, limited market access and inadequate business knowledge and skills. If the regulator challenges of starting and running a business, ease of access to funds and business advisory services can be dealt with, then boost of MSMEs can be guaranteed leading to increased employment, living standards and the overall GDP,” added James.
Utamaduni furniture is among the many beneficiaries of the KCL mentorship program. In a candid interview with the company’s founder Mr. Edwin Ichangai during the International MSMEs day. The benefits of supporting such SMES were broadly brought to light. “Today, we are where we are because of the mentorship we received from KCL. As MSMEs, we go through many challenges, but when we meet partners who are ready to give us the support we need, we can establish business linkages with larger firms and position ourselves in value chains,” said Ichangai.
MSMEs are a crucial component of any expanding economy, and KCL is committed to assisting and advancing MSMEs by providing them with the tools and information they need to increase their capabilities, output, and social impact. KCL offers a number of initiatives, such as mentorship programs, business consulting services, and incubation programs, designed to encourage development and propel the MSMEs towards attaining a sustainable future.
By Tobias Meso