This archive report was first published on 23 December 2019.
Lessons from the US for Kenyan Startups ¶
December 23, 2019
Amelia Philips, a US-based entrepreneur, has been instrumental in driving the fortunes of small enterprises in Kenya through her non-governmental organisation, Somo.
Ms Philips, who grew up in Seattle, Washington, has always been driven by a desire to help the less fortunate in society. She chose to live a life of service because it challenges and teaches her the most every day.
After completing her assignment in Kenya, Ms Philips moved back to the US to finalise her bachelor's degree in international studies and global poverty at the University of California. She promised herself that she would return to Kenya as soon as she was done with her studies.
Ms Philips honoured her promise in 2016 when she moved back to Kenya and founded Somo. The organisation's mission is to create a programme that invests in sustainable change for low-income communities in the global South.
The organisation's name, Somo, is derived from the Swahili word 'masomo,' meaning lessons. Ms Philips believes that everyone is constantly learning, and Somo aims to create a community around this type of learning.
Ms Philips was astounded by the way NGOs in Kenya were being run. She noticed that most NGOs relied on foreign donations instead of local communities. During the piloting phase of Somo's programme, she learned the logistics of starting a business in an informal area with many entrepreneurs, communities, and family dynamics.
Under Somo's entrepreneurship boot camps, the organisation teaches business skills, storytelling, and financial literacy. The training includes problem-solving and ideation, market research, business planning, financial modeling, and digital literacy. Each graduate completes the course with a plan for capitalising their business.
Ms Philips says that Somo determines beneficiaries through a rigorous outreach programme done across low-income areas in Nairobi and Kisumu. Applicants write a one-page application about their idea, and Somo accepts about 20 percent of these applicants to attend workshops on how to write a business plan.
Two of the beneficiaries of the training are Dianna and Hilda, who now run a diaper business that employs four women. Their business has expanded to Mombasa and Kisumu, and they have sold over 8,000 diapers.
So far, Somo has invested Sh50.8 million in various enterprises, but Ms Philips says the organisation still needs more money to support more vulnerable people in the informal settlements. The organisation's biggest financiers include Argidius, Google, UC Berkeley, Jochnick Foundation, and Polish Aid.
Ms Philips says that Somo's Grow your Markets accelerator programme allows entrepreneurs to sell their products through Somo's physical store, online retail, and pop-up markets. The organisation charges a 12 percent commission on all sales to meet operating costs.
Some of the beneficiaries of the programme include Bounty Nut and Puryseth, which have achieved an increase in sales by 35 percent and 44 percent respectively. Somo also provides non-repayable grants to entrepreneurs for capital expenditure needed to launch their ventures.
Ms Philips says that Somo has trained 552 beneficiaries in business plan creation, 172 in Somo's 12-week entrepreneurship boot camp, and 58 in two-year acceleration programme. The organisation has a team of 24 employees and an extra 258 who are directly employed.
Ms Philips says that they have seen the impact of the initiative. For example, Veronica and Eric, who grew up in Nairobi's slums, witnessed the challenge people faced in getting fresh and affordable vegetables. With the help of Somo, the duo set up Verics, a business that uses hydroponics to grow vegetables.
