Strathmore Business School eyes SMEs with new project

Strathmore Business School (SBC) has diversified into consultancy targeting small and medium-sized companies (SMEs).

The service will come as a relief to the enterprises, majority of which collapse within the first three years after being formed.

On Thursday, SBS signed a $5 million agreement with Excelsior Firm, a global capital advisory company based in New York, to set up the Centre for African Mid-Markets Expansion to offer small businesses consultancy services. The centre will be hosted at the Strathmore University’s main campus.

This venture into the consultancy is a step away from their core business which is offering training and would now compete with other consultancy firms such as PriceWaterhouseCoopers for the fledging enterprises.

“The entrepreneurial spirit in the country is quite impressive but it still needs a bit of tweaking in terms of support for them to stay afloat, build top teams and easily attract financing,” said Javier Ewing, the Excelsior managing director.

 Initially, five firms from the information technology and renewable energy sectors would take part in pilot the programme over the next two weeks, before a formal roll-out in March when interested businesses can apply for admission.

In recent years, SMEs, which were viewed as high risk businesses, have seen their fortunes turn as banks increased product offerings tailor-made for them.

However, lack of relevant support has often been blamed for the high fold-up rate among SMEs with one out of three start-ups not surviving past the first three years of being established. The business school hopes to reverse this trend with the new programme.
The training curriculum to be used is being developed in partnership with the Wharton School of the University of Pennsylvania.
For SBS, the initiative is expected to boost their revenues and branch out from its core streams of income — the business leadership courses and MBA courses.

“What we will be offering these entrepreneurs is a premium service for which they will be expected to pay,” said Dr Edward Mungai, the SBS Dean.

He added that the curriculum would include training on among other things, methods of streamlining business operations to improve effectiveness, partnership formation and how capital advisory training to attract investors.

A recent survey carried out by the Kenya institute of Management (KIM) revealed that 48 per cent of the 110 entrepreneurs who have benefited from the Youth Enterprise Fund had less that 50 per cent chance of succeeding past incubation stage.

David Muturi, the executive director of the Kenya Institute of Management (KIM) said that there was need for follow-up sessions and training with such firms in order to ascertain how the new businesses are doing.

Excelsior which operates in other markets such as South Africa, London and New York and deals in advisory services helping them improve their portfolios.

They are also involved in capital brokerage connecting investors with promising enterprises in the countries they operate in.