The health entrepreneurship ecosystem in Kenya is very dynamic with high levels of innovation and to top it up, the healthcare sector is one of the fastest growing sectors. Despite this promising outlook, a notable hesitancy persists within the financial services sector regarding the financing of healthcare businesses. This begs the question: why?
Despite the evident potential for growth and impact, healthcare businesses often find themselves encountering barriers to financial support and access to capital from financial institutions. This reluctance from financial institutions underscores a deeper disconnect between existing business models and the expectations of financiers.
Moreover, the capital-intensive nature of healthcare ventures poses additional hurdles for entrepreneurs seeking financing. From acquiring state-of-the-art medical equipment to securing prime real estate for healthcare facilities, the upfront investment required can be substantial. This capital expenditure, coupled with prolonged gestation periods before profitability is achieved, makes healthcare enterprises a perceived high-risk investment for financial institutions.
Furthermore, the disconnect between existing business models and the expectations of financiers exacerbates the challenge. Traditional approaches to healthcare delivery may not align with the evolving demands of consumers or the rapidly changing landscape of the healthcare industry. As a result, entrepreneurs often struggle to articulate a compelling business case that resonates with potential investors.
In response to these challenges, initiatives like the Health Entrepreneurship Financing Programme, spearheaded by Strathmore University Business School and Sandbox Capital, play a pivotal role in bridging the gap between healthcare entrepreneurs and financial support. By providing specialised training and mentorship, these programmes empower entrepreneurs with the skills and knowledge necessary to navigate the complexities of the healthcare landscape.
The Health Entrepreneurship Financing Programme, funded by USAID, represents a significant step toward strengthening health entrepreneurship in Kenya. Through an intensive four-week curriculum, the participants gained insights into critical areas such as legal and compliance risk, technology integration, operations management, investor relations, and strategic leadership. Armed with this comprehensive skill set, graduates are better equipped to overcome the barriers to financing and drive sustainable growth in the healthcare sector.
The Programme ended on 3rd May 2024 with a colourful graduation ceremony.
As we navigate this transformative landscape, it is individuals like the graduates of the Health Entrepreneurship Financing Programme who hold the key to unlocking the full potential of healthcare entrepreneurship in Kenya. Their vision, tenacity, and willingness to innovate will shape the future of healthcare delivery, ensuring that every individual has access to quality care. By addressing the root causes of this financing hesitancy and equipping entrepreneurs with the tools for success, we can pave the way for a thriving healthcare ecosystem that benefits society.
Article by Juliet Hinga
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