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NAIROBI, KENYA, JULY 4 – Ipsos, a global market research company, is conducting a study of small and medium-sized enterprises (SMEs) in Kenya as a result of growing growth challenges
Corruption and an unfavorable regulatory environment were also cited as obstacles to the growth of SMEs in the country and in developing countries. According to Ipsos, the study seeks to understand the culture of SMEs in Kenya, in particular how they compete with each other and how cultural values affect their competitiveness.
have a turnover of between 5 and 800 million Ksh.
"This is the clbadification that Kenya's National Standards Bureau gives to medium-sized enterprises".
This study is part of a similar survey conducted in France, India and the United States by the research firm listed on the Paris Stock Exchange, which operates in 87 countries.
Most SMEs are in the informal sector. According to estimates, SMEs contribute 25 per cent of GDP, accounting for 30 per cent of employment and 3 per cent of Kenya's gross domestic product
. According to Wangechi Muriuki, National Director of IIA-Kenya, SMEs remain essential to the growth of the country's economy, hence the need to support their growth
READ: Investing in Africa for more support to close the financing gap for SMEs
"Small and medium-sized enterprises are the main drivers of growth in the Kenyan economy, creating about 90 percent of new jobs each year and contributing to about 25 percent of the country's gross domestic product, "she noted.
the support of the Kenya Private Sector Alliance which urged its members to participate.
"We believe that the results will interest the business community and therefore fully support the initiative," Kepsa said. The dynamic and growing SME sector can be an important catalyst for inclusive growth.
However, small and medium-sized enterprises continue to face difficulties, particularly in their operational environment
in Kenya, for example. Traditional bank financing remains a challenge for smaller entities, which has been exacerbated by interest rate caps following the promulgation of the Banking Amendment Act in September 2016, which set the ceiling for lending rates at four to four per cent. hundred. The latest review by the Monetary Policy Committee of the Central Bank of Kenya maintained the interest rate of the Central Bank of Congo at 9.5%. This means that commercial banks can only charge 13.5%.
Banks have turned to government securities, large corporations and other investments, avoiding SMEs that present themselves as high risk borrowers. With respect to SME development in Kenya, a more diverse range of targeted financing options for SMEs ranging from debt financing to equity financing was created
. "Despite the growing number of targeted efforts to finance SMEs, lack of access to finance appears to be a critical factor affecting equity financing, angel investors, private equity funds and subsidies. "19659002 the growth and expansion of SMEs in Kenya. It remains one of the most debated topics on SMEs, "said Muriuki
Invest In Africa is one of the organizations working to improve SMEs' access to skills, markets and skills. finances in partnership with the two main organizations in Kenya. is targeted among others; stimulate job creation and business development in the economy.
With its partners, IIA has created a unique and world-clbad online technology platform – the African Partner Pool (APP) which currently has a cross-sectoral database of more than 1,300 Controlled SMEs in Kenya
The platform directly links SMEs to large organizations that supply goods and services locally and also provides capacity building to fill existing gaps in skills and knowledge. .
Microenterprises and SMEs account for 95% of enterprises in most countries, create jobs, contribute to GDP, promote industrial development, satisfy local demand for services, innovate and support large enterprises with inputs and services.
In Africa, SMEs create 80% of jobs, establishing a new middle clbad and stimulating demand for new goods and services.
Small loans to SMEs led to a 1.4% decline in Kenya's GDP growth. in 2017, a factor that the Central Bank of Kenya confirmed by noting a significant decline in the number of loans.
"The increasing value of loan size vis-à-vis the reduced number of loans reflects reduced access to smaller borrowers and larger loans CBK said in a statement
the retail trade, tourism, hospitality and justice sector
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