A holistic approach to the sustainable growth of MSMEs

In Kenya, just like many other countries, micro, small and medium enterprises (MSMEs) face many challenges. Access to capital remains a major hindrance to their survival and growth.

However, we must not lose sight of the other barriers, such as regulatory bottlenecks, market access, technology and skill gaps, leadership, and management, that lead to the closure of businesses prematurely.

To help these enterprises thrive, we require increased investment as well as strategic partnerships while adopting a comprehensive approach to transform thriving MSMEs in Africa.

Committing to an integrated business ecosystem support approach is essential to enable them to identify and seize the opportunities available to them.

MSMEs in Kenya often lack access to affordable legal counsel and business advisory services. One way to assist them is by providing accessible legal guidance, helping them navigate complex regulations, assistance in drafting contracts, counsel on intellectual property rights and dispute resolution mechanisms.

This will create a stronger legal foundation for their operations, mitigating potential risks and fostering an environment for fair contract enforcement.

Access to timely and valuable information is also crucial to MSMEs in a bid to help them gain a competitive edge while scaling their operations and achieving success.

Unlike large enterprises, MSMEs often struggle to access such resources. Strategic partnerships with private entities should enable them to access capacity-building and mentorship programmes as well as leadership development opportunities.

Access to finance and financial advisory services are the lifeblood of MSMEs. Financial institutions that tailor their offerings to the specific needs of these enterprises play a crucial role in not only ensuring they survive but thrive too.

This includes the provision of access to credit, trade finance, working capital, and other financial products essential for business expansion.

The bank’s financial advisers assist MSMEs in making sound financial decisions, enabling them to manage cash flow, investments, and overall financial well-being. This support empowers MSMEs to plan for sustainable growth and navigate economic challenges with confidence.

The success of MSMEs does not rely solely on one form of support. It necessitates a holistic and collaborative approach encompassing legal, business advisory, mentorship, and financial services.

A small enterprise mired with several operational and strategic issues with limited human resources needs integrated support achieved through coordinated efforts from various stakeholders.

However, the implementation will not be meaningful without close coordination among regulatory and development policymakers, enterprises and their representative bodies, government agencies and financial institutions.

Their collective endeavours unlock the potential of MSMEs, propelling Kenya toward a more prosperous and resilient future. This investment is not only in the empowerment of its entrepreneurs but also in the nation’s prosperity.

It is time to scale up multi-partner collaborations.

The writer is the National Bank of Kenya managing director.