MSME ’ S
MSME Conversations : Tiny But Mighty !
By Monica Kabui
Recently , a friend of mine who is a seasoned marketing entrepreneur called me up for a catch-up chit-chat over brunch in some city joint . It was a relaxed time of day despite the place being a popular joint , the kind of environment that encourages knowledgeable in-depth conversations .
So we discussed all things marketing and agency vs client dynamics and just general industry banter but our conversation quickly steered into the MSME world and how the owners run their businesses .
We both agreed that many business owners start out either after failed job seeking , as a side hustle or when they quit or lose their jobs . This becomes an avenue for supplementing their previous employment income or as a way of sustaining themselves and their families .
They then run their businesses with little or no systems in place and mostly view them as they would their purses . The line between the business and the individual is often quite blurry .
That coupled with observations and interactions in MSME ’ s space led me to conclude that Kenya ’ s business landscape is peculiar because each owner views their “ hussle ” as they would any other personals . It is said that MSME ’ s contribute about 30 percent of the GDP and employ over 15 million people . This among many other studies done by the Central Bank and other players further indicates that it will go up to 50 percent in the next 3 years .
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People buy experiences and the best sales person is a satisfied customer . By captivating this level of self-awareness , you can in turn grow your brand effortlessly and recruit a tribe of loyal customers who in turn sell your products to others without thinking twice about it .
These businesses range from briefcase operatives , to work from home outfits , to owning and running physical offices and yet they are significant enough to attract the attention of any key decision makers in the ecosystem .
The finance sector is ablaze with information on access to finance and ways to unlock the potential of MSME ’ s and they ’ re offering ready money in form of loans and grants . They have taken time to study and understand how these businesses operate in this unique terrain . Armed with this information , they identify areas that they can plug in and support as they also share in the cake , lending MSME ’ s is big business .
These financial institutions capitalize on one of the major challenges that MSMEs face , lack of capital , which has often times incapacitated many high potential businesses . According to the World Bank , their goal is to improve SMEs ’ access to finance and find innovative solutions to unlock sources of capital .
Many MSME ’ s however remain oblivious of their ability to run the country ’ s economy . They say that ignorance is bliss , I couldn ’ t agree more ! Listening to conversations around MSMEs gives me this hard and unfortunate realization .
Inasmuch as all these businesses immensely contribute to the economy , they remain the most oblivious of their impact , potential or significance . They operate more like ants , busy working and always feeding the queen but never realizing how mighty they are .
They employ thousands of Kenyans and contribute to solving a chunk of the unemployment problem among many other activities that they invest their knowledge and expertise in , but all the while seem as though they are condemned to play small .
When a business is at a level where they employ , finance and sustain a new breed of middle class then that business must realize its potential and evoke a need for sustainability . It must have a clear centered plan on which they can base their success and sustenance . For an MSME to become stable enough to outgrow its owner , it must perform necessary periodic checkpoints in a loop .
Inculcate professionalism in your business . The owner must commit to being a professional . As the dream bearer , it is easy to fall into the trap of being the all in all , hoarding information from your employees is one pitfall that can frustrate creativity within the organization .
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