governments often apply punitive measures- like forced evictions or increased taxation- without providing the tools for transition.
Through engagement with a good number of traders across the Kenyan counties, I’ ve observed how informal entrepreneurs, mostly women, yearn to formalize their hustle but lack access to basic training on registration, taxation, or digital tools that could help them grow sustainably. There is a clear gap in inclusive policy design.
Limited |
Infrastructure |
and |
Digital |
Inclusion |
|
|
|
Poor infrastructure- whether roads, electricity, or broadband- remains a stumbling block. In the digital economy, connectivity is the new currency. But policies on digital inclusion often overlook affordability and digital literacy. Without intentional policies to expand digital infrastructure and up skill entrepreneurs, the digital divide will continue to widen.
In implementing digital skills programs, I have learnt that even the best online platforms are underutilized if users are not confident navigating them. Policy needs to prioritize digital readiness, not just access.
Private Sector Innovation: Bridging the Gaps
While the policy environment struggles to catch up with the dynamism of African entrepreneurship, the private sector has not waited on the government to act. Across the continent, we are witnessing creative models of support, driven by business associations, development partners, incubators, and entrepreneurs themselves.
Chambers and Business Associations as Advocacy Vehicles
Local chambers of commerce and sectorial associations are playing a more assertive role in advocating for better policy. My work with county-level chambers in Kenya has shown how these institutions can evolve from passive membership organizations into active policy influencers- if they are well-capacitated.
By training chamber leaders in governance, strategic planning, and datadriven advocacy, we saw a shift in how they engaged with county governments. They began proposing budget priorities, demanding transparency, and championing small business-friendly reforms. This model- of empowered intermediaries engaging on behalf of entrepreneurs- is one of the most promising levers for change.
Digital Platforms Creating New Markets
Private tech companies are building ecosystems of their own. E-commerce platforms, mobile money providers, and logistics startups are connecting small businesses to broader markets and reducing transaction costs. These platforms are often more efficient than public systems and adapt faster to user needs.
In one of the trainings I facilitated for women entrepreneurs on digital commerce, a participant shared how joining a WhatsApp-based marketplace has enabled her access to International clients resulting in an increase in her monthly revenue. That kind of empowerment, catalyzed by the private sector, is reshaping the narrative around small business resilience and growth.
Mentorship, Incubation, and Capacity Building
Private sector actors are also investing in the next generation of entrepreneurs through accelerators, boot camps, and skills training. Some models target underserved groups such as women and youth and aim at providing them with business planning support, market access, and investor linkages.
Leveraging Data and Scorecards for Policy Influence
Private actors are increasingly using evidencebased tools such as business environment scorecards, digital economy indices, and corruption barometers to hold governments accountable. In a project I led, we tracked the Kenyan government’ s progress on its digital economy commitments and launched a public scorecard to spark dialogue.
The act of making policy performance visible, especially when backed by the private sector, changes the accountability dynamic. Governments are more likely to act when data is tied to reputational outcomes or investment decisions.
A Call for Public-Private Collaboration
While the private sector has proven agile in addressing ecosystem gaps, sustainable change requires deeper public-private collaboration. Governments must see private actors not just as taxpayers or job creators but as strategic partners in policy formulation and implementation.
This includes: Co-designing policy solutions with entrepreneurs, chambers, and associations at the table from the start; Creating SME councils or advisory boards within ministries to ensure consistent consultation; Developing inclusive financing models- such as blended finance schemes or innovation funds co-managed with private actors; Mainstreaming entrepreneurship education in public curricula in partnership with business leaders and professionals.
The Way Forward: From Pilot to Policy
Africa does not lack innovation. What it often lacks is the ability to scale what works. Too many entrepreneurship initiatives remain in pilot mode, disconnected from policy systems or funding streams that could drive sustainability. As a program implementation professional, I believe part of our role is to bridge this gap to ensure that successful private-sector models inform national policy and budget priorities.
This requires intentional documentation of what works, a willingness to engage policymakers with humility and persistence, and platforms that enable peer learning across regions. It also means centering entrepreneurs, especially women, youth, and informal sector players in decision-making processes that affect their futures.
In conclusion, building robust entrepreneurship ecosystems in Africa is not the work of the government alone. It is a collective endeavour, requiring the best of both public and private sectors. While policy gaps remain a critical obstacle, the creativity and resilience of Africa’ s entrepreneurs supported by increasingly active private sector partners offer hope for a more inclusive economic future.
From digital inclusion to advocacy, financing to skills development, the solutions are already in motion. What we need now is to bring them to scale, connect them to systems, and make sure the voices of entrepreneurs shape the policies designed to serve them.
Lim Hazel is an SME programs specialist. You can commune with her via mail at: Limmasiga @ gmail. com.