Micro, Small, and Medium Enterprises (MSMEs) play a critical role in Kenya and are at the forefront of creating employment, resource utilization, and income generation.
MSMEs contribute to approximately 40 percent of the country’s Gross Domestic Product (GDP) with the majority falling in the informal sector. Due to the critical role that MSMEs play in economic development their growth is very important, however many do not last for one reason or the other. Here are five tips to help you grow your micro-enterprise:
- Determine a Need for your Product
If you want to start a business, the first thing you do is think about how viable your idea is. Is it an idea that will be solving a problem in the community? The fact is that no matter how good your product or service is, no one will buy it if they don’t want it or believe they don’t need it. This means you can’t persuade your customers to buy what you are selling unless you clearly understand what they want.
- Register your Business
The second thing you should do when setting up a business is to register it. Give it an attractive name so that people can relate it to your product. Many micro-enterprises in Kenya make a lot of money but refuse to register their businesses. For many Kenyans, the primary reason for not registering their businesses is the fear of paying taxes. On the other hand, a registered company not only broadens your potential client and supplier base but also allows you to pitch for business to larger corporations and the government.
- Write a Business Plan
Many micro-entrepreneurs do not see the need to have a business plan. But if you want to have a professional business, writing a business plan is critical. A business plan serves as a roadmap to where you are taking the company. It will help you focus on the specific steps necessary to make your business ideas succeed and enable you to achieve your short-term and long-term objectives.
- Be Innovative
The Kenyan entrepreneurship landscape has a copying problem. As a result, a lot of people get into businesses that their friends or neighbors are into. That is why most businesses do not succeed, they are competing for very few customers. Proper market research can show you the gap in the market. It allows you to innovate and supply what people need but are not getting.
- Consider Getting Some Entrepreneurship Training and Mentors
Building a business is not easy. However, for anyone who wants to run a successful business, there are core skills they must cultivate. You can learn these skills through mentorship or business training. Start by looking at other successful business owners as mentors and then enroll for business training. These will go a long way in helping you build a business that lasts.
By Eunice Muthoni, Head of Entrepreneurial Programmes at Strathmore University Business School
This article was first published by Bunisha on Issue 6 of the ePreneur magazine
Would you like to share an article? Write to us at sbscommunication@strathmore.edu
Share This Story, Choose Your Platform!
Your journey to business excellence starts here. Subscribe today and be at the forefront of innovation and leadership.
