SME’s continue to project exhilarating potential, track record proven by their rapid growth and their significant contribution to the economy. In Kenya, SMEs comprise about 75% of all businesses contributing 18.4 % (8.07 Billion dollars) of the GDP (42.8 Billion Dollars). SMEs employ 7.5 million people (30%) in Kenya and accounts for 80% of employment and contributes over 92% of the new jobs created annually, with a diversity traversing from both the formal and informal sectors, according to the Kenya National Bureau of Statistics –KBS. Key sectors are Agriculture, Manufacturing, Building and construction, Mining, Energy, Water, Trade, Hospitality, Transport, Real estate, Education, Health and professional services.
However, it’s not all glitters for SME’S as they continue to be plagued by numerous challenges, with the greater one being accessing proper knowledge geared towards improving their venture’s management. With this in mind, Strathmore Business School joined hands with the Kenya Coastal Development Project (K.C.D.P) through their implementing body, Coastal Development Authority (CDA), to train SME practitioners in managerial positions in a bid to close the ever widening knowledge gap contributed by the hasty sprouting of SME’s.
Since the signing off of the MOU in 2013, Strathmore Business School has been able to train 500 SME practitioners. The second module training of the Business Management Small and Medium sized Enterprises; dubbed “Training of Trainers” took place from the 29th June – 3rd July at Pwani University, Kilifi.
The training, which is currently based on a new working mode where the trained SME practitioners, venture out to train similar SME business people, drew 54 representatives, across several counties.
The second training module was a finalization of the project, having been preceded by the first training module in January. The participants were given an opportunity to showcase their products and present the milestones achieved over the training and coaching duration.
The training climaxed by a graduation ceremony, graced by the Dean Dr. George Njenga and the Managing Director of CDA, Mr. James Kahindi.
According to Consultancy of Africa Intelligence, Small and medium enterprises (SMEs) are increasingly being recognized as productive drivers of economic growth and development for African countries. For example, it is estimated that SME’s account for 70% of Ghana’s gross domestic product (GDP) and 92% of its businesses. They also make up 91% of formalized business in South Africa and 70% of the manufacturing sector in Nigeria.
SME’s not only contribute significantly to the economy but can also serve as an impetus for economic diversification through their development of new and unsaturated sectors of the economy.