Editorials

Help new businesses grow

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People waiting to be served at Huduma Centre. FILE PHOTO | NMG

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Summary

  • Data from the Registrar of Companies shows the business names registered between April and November rose 58.5 percent to 65,782 compared to 41,490 in a similar period last year — making it the fastest jump in decades.
  • The big test, however, is whether these companies will be able to live beyond their first birthday, create jobs and contribute to economic recovery.
  • The government must therefore step in and facilitate growth and sustenance of businesses.

The surge in new company registrations in the Covid-19 environment is a step in the right direction which should receive strong backing from the State for economic recovery.

Data from the Registrar of Companies shows the business names registered between April and November rose 58.5 percent to 65,782 compared to 41,490 in a similar period last year — making it the fastest jump in decades.

The big test, however, is whether these companies will be able to live beyond their first birthday, create jobs and contribute to economic recovery.

The government must therefore step in and facilitate growth and sustenance of businesses.

While Kenya has done a lot in strengthening the ease of doing business, multiple taxes, corruption and delayed payments for businesses that trade with the State have been thorny issues for many entrepreneurs.

The government should prioritisise the resolution of such issues, streamline accessibility to funding opportunities and offer free business incubation workshops to entrepreneurs.

Entrepreneurs must in turn be ready to invest in research on areas such as the target markets to take their business to the next level.