challenges to small businesses in Kenya

In Kenya small business has become one of the most  contributing factors to the growth of the Kenyan economy. many  Kenyans have realized the advantages   of setting up a business. many People are motivated

by these factors  in starting up a business.

• desire to make money 
• provide self employment to themselves
• for security purposes
• to fulfill a desire of creating a business empire 

•  as a way of social prestige

there are also compelling reasons that make most people in Kenya  want to start up a business which include

• high rates of unemployment in Kenya
• need to make use  of professional skill in business
• to get freedom from formal employment
• desire for personal responsibility 
• and need to achieve.

 however starting a small business in Kenya has been experiencing several challenges  which include.

1. finance 

   many people in Kenya have the desire and potential to start yup a business but they lack finance to set up this business therefore making It a challenge, without finance its is difficult to thrive certain remedies are being incorporated to act as a source of business finance for example , borrowing from friends and relatives,taking of bank loans with little interest rates,from personal savings,and others.

2. skills and experience 

   Kenyans are willing to venture into business but they lack the the proper training and experience
   in managing a small business.the government should ensure they introduce proper training in learning institutions and this strategy will enable Kenyans to be fully .equipped. this will enable small business in Kenya to grow magnificently.

3. government restrictions

   The government of Kenya is restricting growth of small business in that for  one to start up a business one has to get so many permits which  are very expensive to acquire instead many opt for other types of work. the government should reduce  and regulate the many type of work permits  required for a business.

4. political instability

   Many towns are experiencing wars and  fights that have erupted due political situations that the country is going through , this creates a non conducive environment for any kind of business to Carry out its operations.politicians need to maintain peace  ad preach peace for the well being of businesses in Kenya;

5. security

   Small business in Kenya  are unable to grow  due to the increasing levels of insecurity,this makes it risky for business people to manage or start up a business. the government needs to act fast and deal with this situation at once  otherwise the business economy is heading to a wrong direction.

6. competition

   The challenge of competition becomes  another  challenge  to small business in that small business owners  who manufacture  products for their business face competition from imported goods which are similar  or they perform the same function,this should be regulated by ensuring that goods imported cannot be produced locally hence reduction of competition .

7. lack of available market

   Many small businesses in Kenya  have collapsed due to lack of of potential customers for  their  products. This has been due to lack of knowledge about the product by customers or lack of re branding of products by owners.through advertising business owners would be in a position to connect with many customers .