Why This US Entrepreneur Feels That SMEs Will Propel Kenya’s Economy

By  |  February 8, 2019

According to Karl Gibbons, the Entrepreneurs Society of America Chairman, the growth of the Kenyan economy will be driven by small and Medium Enterprises.

While speaking to Capital FM ahead of an Entrepreneurs Summit in Nairobi, Karl said that although the big Corporates will always be in existence, it is the small and medium enterprises (SMEs) that will propel Kenya’s economy towards growth.

“The Kenyan entrepreneurial economy will be driven by the guy or the girl who starts their own business, will probably never do a million dollars a year and will have less than five employees and they will be 80 percent of the economy,” he said.

The tycoon who has sold four multi-billion businesses stated that Africa’s economy is growing strong and the entrepreneurial community is growing in leaps and bounds. He added that it doesn’t matter where one is, a good opportunity will be noticed and thus attract investors globally.

Close to half a million small businesses in Kenya close down annually due to unstable business environments. This is according to a report by the Kenya National Bureau of Statistics released in 2016.

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“A total of 2.2 million MSMEs were closed in the last five years, 2016 inclusive,” a part of the report reads. The results of the survey further revealed that a significant 46 percent of the MSMEs surveyed died in the first year of establishment.

One of the major challenges facing SMEs in Kenya is the lack of adequate capital, rapid advancement in technology and the lack of knowledge of the versed market.

Karl, who is also the Third Eye Management President maintained that Africa is a new frontier for investors adding that Americans are keen on investing in the African market. He urged the government to invest more in creating an enabling environment for small businesses to thrive.

Karl is an award-winning entrepreneur who has over time mastered the art of doing good business. By the age of 40, he had created four million dollar businesses. He has also nurtured and overseen the growth of thousands of small businesses globally.

Some of the awards he has received include 1998 Barclays Bank Business of the Year, 2008 he was the winner of the Naples Area Professional League of Executive Services Liz Cashman Award and Gulfshore Business magazine named him one of the Power Players and Influential Forces in the region’s business community

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