This archive report was first published on 19 July 2020.
Published on July 19, 2020, a survey of Kenyan small and medium enterprises (SMEs) highlighted funding as their top concern in the next three to six months.
The mobile-based survey, conducted in March and April, aimed to understand the impact of Covid-19 on SMEs' business turnover, performance, and challenges. Key parameters included funding and non-funding needs, government initiatives, and SME staff priorities.
On funding, the survey revealed that 51% of respondents expected a negative change in business financing, while 26% anticipated a positive change. Meanwhile, 18% saw no change, and 5% were unsure.
Wylde International Chief Executive Joram Mwinamo emphasized the uncertainty surrounding SMEs' future, stating, "There is uncertainty going forward, and SMEs are looking forward to, for instance, quick operationalisation of government initiatives like the recently launched Credit Guarantee Fund, special economic stimulus package for hard-hit sectors like tourism, hospitality, travel, and related sectors."
According to the survey, external funding was seen as the most important factor at 80%. Business support organizations were recommended to focus on funding programs that include capacity building on survival strategies, cost management, and innovations.
The top three non-funding needs identified by the survey were reviewing business strategies, such as networking and new ventures (23%), business development and management (17%), and tax relief or waivers (11%).
Majority of the businesses reported performing poorly in the two months, with 43% saying they were somewhat worse, 25% significantly worse, and 20% about the same in March.
The effects of the crisis on SME owners were found to be negativity and stress (49%), adaptation to the situation (22%), and uncertainty in future business (14%), as highlighted by Mwinamo.
