Empower women-led SMEs

In recent times, women-led small and medium enterprises (SMEs) have mushroomed across the country showing great potential of being the backbone of economic growth. Study reveals that women's businesses account for 48% of all SME ventures.

Notably, the majority of women have ventured into these businesses, perhaps out of necessity and creativity, and they range from small market stalls to thriving tech startups, demonstrating the resilience and innovation of women.

However, regardless of their significant contribution, women entrepreneurs face challenges that hinder their full economic participation. Therefore, to truly unlock the potential of women in business, targeted policies focused on funding, mentorship, and legal frameworks are essential.

One cannot ignore the entrepreneurial spirit among women across the country. From deep villages to urban centers, women are creating solutions to local problems and generating diverse livelihoods. Kenya National Bureau of Statistics (KNBS) recent report shows that women-owned businesses contribute up to 20% of the country’s GDP. This statistic is monumental, especially in a society where some cultural norms, financial constraints, and limited access to resources often pose huge barriers to women’s economic success.

Women entrepreneurs

Inadequate funding poses a significant hindrance to women entrepreneurs. In spite of their creativity, women-led businesses are disproportionately excluded from formal credit markets—with more complex processes. A study by the International Finance Corporation (IFC) reveals that women in Kenya face a $1.3 billion credit gap. With limited funding, many women keep struggling to scale their businesses, expand their operations, or invest in technology that could make them more competitive thereby boosting the economy. Stakeholders should provide more funding to make women-led SMEs sustainable.

Another vital component in fostering the growth of women-led SMEs is designing targeted mentorship programmes for them that will strengthen their business skills and knowledge to run and grow a business.

Additionally, mentorship programs will offer women entrepreneurs networking opportunities, and enhance capacity building in business management. Mentorship not only provides guidance but also builds the confidence of women, and connects them with markets and suppliers that would otherwise be difficult to access.

Digital literacy

Moreover, stakeholders should equip women entrepreneurs with digital literacy. Digital tools have revolutionized business across the world and if properly utilized it can emerge as a powerful equalizer for women in business. Targeted digital initiatives that offer skills and create employment opportunities for women can be critical in ensuring their participation in the modern economy. Equipping women with digital literacy and online work skills will help them tap into new markets, from e-commerce to freelance opportunities, breaking down the traditional geographic barriers that sometimes limit their reach.

Although the government and other stakeholders including the private sector and NGOs have made significant progress in promoting women-led businesses, legal frameworks must evolve to support women entrepreneurs sustainably.

Laws especially, around land ownership and inheritance, for instance, immensely affect women’s ability to secure collateral for loans. Additionally, easing the registration processes for small businesses and reducing bureaucratic red tape would encourage more women to formalize their businesses, allowing them to access government services, contracts, and other support systems.

It is imperative to note that the rise of women entrepreneurs across the country is not just a story of economic empowerment; it is a story of resilience, adaptability, and innovation. These women are not only lifting themselves, diversifying their livelihoods, and getting their families out of poverty but are also contributing to the nation’s broader economic growth.

With sustained support in areas of funding, mentorship, digital skills, and legal reform, as a country we can fully harness the potential of women-led SMEs, accelerating progress towards both economic equality and national prosperity.

 Kelvin Jomo, Communication Strategist/Account Manager Admedia Communications Ltd. [email protected]