Micro Enterprise In Kenya

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A short presentation about the micro finance sector in Kenya. Author: Ray Dinning, J.D, L.L.M. (c) Ray Dinning, ESQ.

Original file: http://socialventurelaw.wordpress.com/2010/03/10/powerpoint-on-micro-enterprise-in-africa-by-ray-dinning-esq/

Mr. Dinning's profile: http://socialentrepreneurshipinafrica.wordpress.com/2009/11/19/ray-dinning-jd-llm-tax-joins-social-venture-network/

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Micro Enterprise In Kenya

  1. 1. Micro Enterprise in Africa "If you can DREAM it, you can DO it." - Walt Disney EXPERIENCE IN KENYA BY: RAY DINNING, JD, LLM JANUARY 2010 COPYRIGHT © 2010 RAY DINNING, ESQ.
  2. 2. Micro Enterprise in Kenya What do they do? Who works in them? Where are they located? How do they start? How can we help it succeed? 2
  3. 3. In order to assist, we must first “learn” “One of the best ways to persuade others is with your ears - by listening to them” – Dean Rusk What do the people want? What are their dreams? How do we equip them? How to spark transformation? 3
  4. 4. Micro Enterprise in Kenya 4 Bars/Hotels/ Restaurants 6% Other services 15% Trade Construction 64% 2% Manufacturing 13%
  5. 5. Micro Enterprise Owners in Kenya "Destiny is not a matter of chance, it is a matter of choice. It is not a thing to be waited for, it is a thing to be achieved." - Jeremy Kitson 5  Gender:  52% male and 48% female  Women predominate in trade and particular service and manufacturing activities  Age: mean age of 35 years  Education:  90% have at least primary  35% have secondary or better
  6. 6. Micro Enterprise in Kenya 6  70% of businesses do not employ outside labor – the owner is the sole owner and employee  Many are casual workers, trainees, and, especially in rural areas, family members  Terms and conditions of work vary greatly  Lack of innovation
  7. 7. Micro Enterprise by Location 7 Rural areas Nairobi and 66% Mombasa 16% Other major towns Rural towns 12% 6%
  8. 8. The Significant Impact of Micro Enterprise in Africa 8 Micro Enterprise Contribution to African Economy • Contribution to GDP of countries throughout Africa ranges from about 15% to as high as 70% • Diversification of goods and services To households and individuals • Significant proportion of households earn some or all of their income from micro enterprise and small business • Higher earnings, more selection, lower prices • Opportunity to learn and grow • Achievement of Dream – quality of life and living
  9. 9. Generally – Micro Enterprise = Start-ups 9  What attracts people into micro enterprise? • Hope for better income, preference for self-employment, skills, family background in business • Lack of alternatives  What resources do social entrepreneurs have? • Own savings • An idea of what they want to do • Human Capital  What resources do social entrepreneurs lack? • Education and Business Experience • Sufficient resources and capital
  10. 10. The Life of a Micro Enterprise 10 Mean age of a Kenyan micro business is 6.9 years Few businesses outlive the founder Most lack sufficient capital Little or no access to credit for expansion Most suffer from poor infrastructure, insecurity, extremely competitive markets, and an unfavourable institutional environment There is little information on “new” micro- enterprises such as technology firms, business process outsourcing, etc. Lack of innovation and lack of access to key tools for success in business
  11. 11. The Death of a Micro Enterprise 11  In Kenya, urban micro enterprise businesses are more likely to close than rural business  Age of average micro enterprise at closure • 3 years for urban businesses • 5 years for rural businesses  Main reasons given for closure: • Lack of operating funds • Personal reasons • Lack of resources or knowledge to expand or innovate
  12. 12. Challenges to Micro Enterprise Development 12  Markets and competition  Resources  Technology  Infrastructure  Institutional environment  People who care
  13. 13. How can we help foster Micro Enterprise 13  Activate private business and finance  Government  Non-governmental organisations  Faith-Based Organizations  Short Term Business Missions Trips  Activate Retirees with business and life experience to help educate and aid others as business coaches and mentors
  14. 14. We can all make a difference in the continent of Africa – if we only get involved Help “To be a revolutionary you have to be a human being. You have to care about people who have no power.” - Jane Fonda

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