The Four Skins Of A Kenyan Entrepreneur

By Juma / Published February 16, 2021 | 9:00 am




KEY POINTS

A Kenyan Entrepreneur has four skins; setting up the business, looking for clients, delivering and chasing after payments.


home-based business //Courtesy//

Being an entrepreneur in Kenya is not easy. It is like every system in this country hates entrepreneurs; from Kenya Revenue Authority to the House on the Hill. Being an entrepreneur in this hopeless country should be added to 1000 ways to die.

Stats from the Kenya Bureau of Statistics (KNBS) showed that five years to 2016, 2.2 million entrepreneurs/SMEs shut down their businesses. Nobody seems to get scared of such stats in Kenya. They are used to billions getting lost. What is 2.2 million?

The stats meant that at least 450,000 entrepreneurs/SMEs were exiting the Kenyan market annually, 30,000 monthly, and 1,000 daily. Ironically, the same stats show that at least 1,000 businesses are registered daily in Kenya. Imagine that.

Despite the fact that entrepreneurs/ SMEs employ about 86 percent of Kenya’s population, and contribute about 45.5 percent to GDP, it is always ailing and on verge of breaking down. The sector has a myriad of challenges that old the bold dare to face.

A Kenyan entrepreneur has four skins or layers. The thickness of these layers vary but the end result is almost the same for almost all of them. Let us have a look at these skins:

Skin 1: Setting up the business

Setting up a business in Kenya is not a walk in the park. Millions have ended up giving up before even kicking off. The requirements and the kickbacks one has to pay, end up eating up the investment before even one finds out where to set up the business.

The cost of doing business in Kenya is out of this world. One must always budget for corruption too for without “knowing people”, you will never set up a meaningful business. No wonder so many investors are opting for Rwanda and Uganda.

Getting the required permits and certificates, as well as rent for a place you intend to set up the business, will dig a huge hole in your pocket before you even set up. In other words, the chances of your business failing before it starts are always high.

Skin 2: Looking for clients/customers 

Those in the retail sector have little trouble finding customers/clients. Despite the challenges that come with competition, it largely depends on the niche one targets. Despite the challenges, most of their customers pay in cash and at a go.

But this country is hell for suppliers and those in the service industry. Anyone who supplies a service in this country is like a gambler, banking on elusive hope. Finding clients depends on who one knows and how much one is willing to give. “I have this deal, but you must give me Ksh *** once it is done.”

So, you end up getting a deal worth 200,000 shillings but only 80,000 shillings are yours. 120,000 goes to oiling lazy hands that “gave you the deal” with the hope that they “will remember you” when another deal comes up. It is man-eat-man-society.

Skin 3: Delivering 

Most clients are demanding, especially those who pay less. Someone will pay you 30,000 shillings but demands a service or work worth 100,000 shillings. Most small clients are the most toxic in demanding the most while spending so little.

Those in the service industry will tell you that most Kenyan clients have a habit of “forgetting” the deliverables within the contract they drafted themselves to want you to deliver miracles. They develop sudden amnesia as soon as the contract is signed.

Skin 4: Chasing after payments 

This has to be the thickest skin. If you have a weak skin 4, then you have no business doing business in Kenya. Most Kenyan clients have a problem paying as soon as work is done. As soon as work is done, they suddenly turn into literature experts in giving you wonderful promises on an unknown future.

As an entrepreneur, you must have skill in collecting debts. You must be ready to forego some debts however painful it might be. Some clients can frustrate you to the point of driving you into depression.

At which skin level are you?

READ: This Is How To Succeed As A Female Entrepreneur




About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

View other posts by Juma


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2023
  • January 2023 (182)
  • February 2023 (203)
  • March 2023 (322)
  • April 2023 (298)
  • May 2023 (268)
  • June 2023 (214)
  • July 2023 (212)
  • August 2023 (257)
  • September 2023 (237)
  • October 2023 (266)
  • November 2023 (263)
  • 2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (358)
  • April 2022 (292)
  • May 2022 (271)
  • June 2022 (232)
  • July 2022 (278)
  • August 2022 (253)
  • September 2022 (246)
  • October 2022 (196)
  • November 2022 (232)
  • December 2022 (167)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (272)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950