Small & Medium Enterprises (SMEs) are a crucial component for the economic enhancement of any given country. The SME sector plays a critical role in both the economic growth as well as in the reduction of poverty.
Kenya Association of Manufacturers (KAM) knows the key role that the SME sector plays in building the economy of Kenya. In Kenya at the moment, the SME sector employs more than 80 percent of Kenyans and it is one of the major contributors of the revenue to the country. It is because of this that KAM has organized a one day workshop for the SME practitioners in order to interact with them, know the challenges they face especially in the area of financial access as well as how they can be assisted.
Speaking at the workshop, Phyllis Wakiaga, the chief executive office at KAM said that the SME sector in Kenya faces among other challenges inadequate finances, no market access to many SMEs as well as inadequate skills and innovations in the sector.
Quality product development coupled with the right pricing is critical in the enhancement of the competitiveness, exploiting economies of scale as well as increasing the marginal revenue for various proposed products. However, the local level of product development in Kenya has been low resulting to lack of competitiveness among the manufacturers. This lack of competitiveness is what has allowed the imported goods to dominate the Kenyan market at the expense of local products.
Kenya Association of Manufacturers offers business advisory services on SMEs that is focused ob research, studies and surveys, business diagnosis, business mentorship as well as business coaching. It also gives technical, operational as well as management training such as strategy and business planning, customer management, factory exchange as well as learning visits.
Article by Juma Fred.