Chairman of Entrepreneurs Society of America claims Kenya’s economy to be driven by SMEs

The Chairman of the Entrepreneurs Society of America, Karl Gibbons, has stated that Kenya’s small and medium enterprises will help grow the nation’s economy.

Gibbons made the statement when speaking to investors at the Entrepreneurs Summit in Nairobi, Capital FM Kenya reported.

The Chairman urged the government to continue investment in small businesses and ease of doing business.

“The Kenyan economy will be driven by the guy or the girl who starts their own business, will probably never do a million dollars a year and will have less than five employees and they will be 80 percent of the economy,” stated Gibbons.

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“Kenya should focus on creating a good environment for small businesses to thrive, some of these small businesses could end up being big corporations.”

 “Africa is growing enormously; many American investors are keen on investing here.”

According to the Central Bank of Kenya, around 46% of Kenya’s SMEs end their operations within a year of launching, followed by 15% in the second year.

The biggest issues small businesses in the country are facing are inadequate capital, limited market access, deprived and unsupportive infrastructure, inadequate knowledge and skills, and rapid changes in technology, claimed the Deloitte Kenya Economic Outlook 2016.