LETTERS: How State can tap SMEs for economic growth

It was a good gesture by President Uhuru Kenyatta to create to meet entrepreneurs during a one-on-one Small and Medium Enterprises (SMEs) Presidential Roundtable at the Strathmore University last week.

Of course the President has been holding many such meetings with big titans over the years and his gesture to seat with the ‘Wanjiku’ SMEs was the best thing this year.

The president was able to hear issues affecting SMEs first-hand without any sugar coating by his advisers - mostly technocrats who may have little understanding of the real situations on the ground.

As an entrepreneur, author, SMEs mentor and a businessman who failed 15 times over the 20 years, I have some advice to the President on steps he can take to boost the survival of SMEs.

First, the government should address funding challenges. Let the financing be available through several sources. The government can give tax waivers for banks that support entrepreneurs or SMEs.

Second, the State should consider tax waivers for small businesses that are less than three years old, employ more than five people and have good books of accounts or basic audit records. The President can involve the SMEs themselves to set the criteria.

Such SMEs should have a long-term growth plan to create jobs, innovate and add value to society. This will stop the death of enterprises, which was recorded at 2.2 million between 2012 and 2016, according to the Kenya National Bureau of Statistics.

Third, the State should have regular roundtable meetings with business owners. Going forward, the President can consider holding quarterly meetings exclusively with SMEs.

Two representatives can be drawn from all the 47 counties with an exception of Nairobi that can have 20 representatives due to its huge number of SMEs.

These representatives must demonstrate that they represent a majority of SME players. Let us not bring bosses again on this SME roundtable forums.

The President should listen, motivate and encourage these job creators.

Remember SMEs create more than 75 per cent of the jobs, according to Mr Kenyatta.

Mentorship programmes can also be adapted to bolster the performance of the SME sector.

The big players who own large companies can mentor SMEs easily. This appeal needs to be made by the President himself and mentorship can be backed up by tax benefits.

Another way to encourage mentorship is to award those bigger SME owners to nurture others.

Let us not only honour old folks with medals they will never utilise. Although many of them have done proud as a nation, it is the younger folks that need to be encouraged upwards.

The President can honour younger business owners who are transforming Kenya through job creation.

Last but not least, the government needs to be more hands-on.

The President talked about rolling sleeves, removing suits to visit SME hubs like Gikomba Market. Yes, this is the way to go. Loop in media to support such initiatives. A good example is how the President has started the monthly cleaning initiative.

Such will encourage the population and create a big movement of doing community work, registering SMEs to do community work in addition to doing business. The President should borrow such a model to do impromptu visits to as SMEs in the 47 counties.

George Wachiuri, CEO, Optiven Group.