Why many businesses fail shortly after launch

Shanga Zetu trader Thomas Muli at his shop in City Market, Nairobi. PHOTO | ANTHONY OMUYA | NMG

Have you tried your hand at some small business but it failed to see its second or third birthday? You could be among a handful of would-be entrepreneurs who have tried and failed. But you were not alone.

A 2016 survey by Kenya National Bureau of Statistics reveals that almost 400,000 micro, small and medium enterprises (MSMEs) did not see their second anniversary in the last five years. And 2.2 million MSMEs closed shop during the years under review. This results in loss of jobs and tax revenue.

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Note: The results are not exact but very close to the actual.