CIPE holds an Africa Partners Roundtable

The Center for International Private Enterprise (CIPE) organized a CIPE Africa Partners Roundtable “Strategies for Reform,” held in Dar es Salaam, Tanzania, at the White Sands Hotel, from December 7-9, 2010.

This roundtable on recognizing the vital and strategic role that business associations and think tanks play in advancing democratic and economic reform on the continent was an event for key CIPE partners and colleagues to actively engage in discussion and share best practices. The event provided participants with an opportunity to gain valuable tools from the most successful CIPE reform programs in the region, as well as further their network with other associations and think tanks in Africa to facilitate collaboration. The program involved a network of 20-25 distinguished CIPE partners from Cote d’Ivoire, Ethiopia, Ghana, Kenya, Nigeria, Senegal, Zimbabwe, and others.

The active participants in the roundtable enhanced their organization’s strategic focus and programming, as well as gave them the opportunity to provide valuable input into CIPE’s strategy to support reform efforts on the continent.

We at SMES-EA wish CIPE all the best in their work in the African Continet

Kenya - Burundi Friendship week

The first ever Kenya-Burundi. Friendship week

The Kenyan Embassy in Bujumbura - Burundi organized a series of activities to mark the first ever Kenya-Burundi friendship week. These activities included a road race ; Football match between parliamentarians from Kenya and Burundi; A boda boda (Bike) race and Cultural night. These events were designed to enhance the cordial relationship that exist between the people of Kenya and Burundi and to foster closer partnership.

Workshop on Entrepreneurship Development in Africa- Copenhagen, Denmark

The Centre for Business and Development Studies at Copenhagen Business School and the Danish Ministry of Foreign Affairs (the Danish Development Cooperation) has just concluded a high level meeting on Entrepreneurship Development in Africa held between 6th and 8th September 2010 at the Copenhagen business school in Denmark.
The objective of the workshop on Entrepreneurship Development in Africa was to share the knowledge and experiences to discuss and provide conclusions on what role entrepreneurship development has played and can play to stimulate growth and development in Africa. The aim was to provide inputs and recommendations to how entrepreneurship in Africa should be supported in the future based on the accumulated knowledge from research and practical experiences.

The meeting was punctuated by a very lively debate on “entrepreneurship, growth and employment” attended by the Danish Minister for Development Cooperation, Mr. Soren Pind. Participants engaged on how entrepreneurship development contributes to growth and employment, and what type of policies and support, including foreign aid, can be recommended

The public debate was an opportunity to influence how the “Growth and Employment” priority in the new strategy for Denmark’s Development Cooperation can be developed into practical initiatives. Participants included African researchers, African YEMP coordinators, entrepreneurs and members of networks, Danish and Nordic researchers. We were honoured to share our MSE Sector experiences drawn from Kenya and the East African Community Region in general.

We look forward to sharing with you the findings and recommendations from the workshop in the near future.

PUBLICATION OF AN SME HANDBOOK

A new and comprehensive Handbook to address the critical need for information on service providers to the SME sector in Kenya is currently being developed. The Handbook is a project of the Small and Medium Enterprise Support, East Africa (SMES, EA) an institution addressing various information and training gaps in the MSME sector and engaged in the provision of Business Development Support Services (BDSS) in the Micro, Small and Medium Enterprises sector. It is being published by Aquarius Media, a public relations and publishing Agency which has undertaken a lot of work in public relations, publishing and editorial services both within Kenya and the EAC region

The Handbook has been borne of an obvious need by the MSMEs for a comprehensive databank to act as a one-stop-shop for accessing information on service providers to the sector

A major outcome of this catalogue will be to spur demand for SME services as players in the sector will now find it easier to seek out those offering the various services in their areas. This will be the advantage of awareness for those who will partner on their services in this catalogue.

Several organizations including Kenya National Chamber of Commerce and Industry, Micro and Small Enterprises Federation (MSEF), Kenya National Alliance of Street Vendors and Informal Traders (KENASVIT), Kamukunji Jua Kali Youth Initiative (KAJUYI) Kenya Association of Young Entrepreneurs (KAYE), Entrepreneurship For Youth Empowerment-Kenya (EYE-K), Kenya National Jua Kali Youth Association (KNJKYA), Association of East Africa Women Entrepreneurs (AEAWE), Nairobi Metropolitan Jua Kali Associations (NMJKA), Kenya National Jua Kali Co-Operative Society, Millennium Youth Development and Cultural organization (MYDCO), Kenya Micro & Small Enterprise Trainers Association (KMSETA), GS1 and Metropol East Africa just to name a few, are among the organizations that have Shown an interest to partner in this project

We look forward to working together with stakeholders towards the development and promotion of the Micro Small and Medium Enterprises in Kenya and the East African Community in general

NATIONAL YOUTH TRADE FAIR KICC NAIROBI 24TH, - 26TH, JUNE 2010

NATIONAL YOUTH TRADE FAIR KICC 24TH, - 26TH, JUNE 2010

Young entrepreneurs from the Jua Kali Informal Economic Sector (MSEs) had an opportunity to participate at the just concluded National Trade Fair held at the Kenyatta international conference center (KICC) which took place from 24th to 26th June 2010.The exhibition brought together exhibitors representing various sectors of the economy.

Some of the objectives of the trade fair included:

v Opening up young entrepreneurs to local and export market to market their products and expand their businesses

v Enabling Youths to showcase their products, get business contacts and for the public to build trust in young entrepreneurs

v Bringing together the youth to interact and exchange ideas from each other

v Encouraging the private sector, NGOs and other stakeholders to source products and services from youth enterprises

v Encouraging formation of youth groups or enterprises to enter into franchising partnerships with established Firms, Brands, Outlets etc

v Serving as a platform of encouraging other youth groups to engage in entrepreneurship etc.

Youths from the Jua Kali (MSE) Informal Economic Sector engage in activities drawn from the following sub sectors of the national economy:


Textile- Garments, Tie & dye, weaving, screen printing and batiks, embroidery, crocheting
Handcrafts- Curios, paintings, jewelry, weaved products
Agri- Processing- Processed foods, wines, juices,
Metal Products and fabrications-Metal fabrications
Leather Products- Belts, bags, shoes, ties,wallets
Woodworks- Furniture, doors, beehives
Chemical Industrial Products- Herbal products, soaps & detergents, Chalks and insecticides, beauty products
Herbal Medicine- Assorted herbal concoctions/formulations
Bee-Keeping- Honey processing equipments, safety wear, Assorted honey products
Services, Hospitality, flowers,
Electrical & Electronics- Assorted electrical gadgets
Building Materials,- Assorted Building blocks
ceramics,- Assorted ceramics products
Value addition- Herbal and animal products, fruits
Tin metal- Assorted sculpters
waste recycling, Products and technologies
Plastics, Products and technologies, clay $ pottery, Assorted clay products,Auto accessories,Assorted auto spares,Machineries,Assorted machines,Design and Fine Arts (Graphics),Assorted Paintings, mosaics

The trade fair dubbed, “VIJANA TUKO JUU; VISION 2030 NI SASA”, was officially opened by the Minister for Youth Affairs and Sports Hon. Prof. Hellen Sambili. The Minister is very instrumental in championing Youth Empowerment initiatives in the country. Other dignitaries who graced this occasion included the Director General of Vision 2030 Vision Delivery Secretariat (VDS), Mr. Mugo Kibati and several officials from the Kenya National Jua Kali Youth Association (KNJKYA) among many others.

The trade fair was organized by the Youth Enterprise Development Fund (YEDF)

THE EAST AFRICAN COMMON MARKET PROTOCOL

Count down to the East African Common Market

The Heads of State of the EAC Partner States acceded to the East African Common Market Protocol which is expected to be implemented from July 1, 2010 following ratification in all partner states.
The EAC Common Markets Protocol provides for:

 Free movement of Goods
 Free movement of Persons
 Free movement of Service
 Free movement of Capital
 Free movement of Workers
 The right of Establishment
 The right of Residence

In view of the enhanced market of about 130 million people, the EAC integration process should spur more growth in investments in the region.

SMES-EA wish the partner states good luck and urge them to do more in terms of ensuring widespread sensitization of their Citizens on the provisions of the Common Markets Protocol and opportunities.

Are the Small and Medium Enterprises (SMEs) based in the EAC region ready to avail themselves of these opportunities???

The present economic situation in the region dictates that residual labour market entrants have no alternative but to find their way as micro entrepreneurs, casual or regular employees, or apprentices into the urban or rural informal sector activities. Over the period between 1980 and 2000 the MSE sector (majority based in the informal sector) employment increased at an average rate of 12% yearly giving the highest sub-sector growth in the region.

The MSE sector consists of a wide variety of small enterprises employing less than 10 and in most instances less than 5 workers. They operate with little or no capital at low levels of productivity and often out of temporary structures. Few of the micro entrepreneurs have the qualifications normally associated with their trade; many find themselves in circumstances which make it difficult for them to abide to the code of professional ethics and to adhere strictly to Governments’ rules and regulations and, as a result are liable to law enforcement measures, including penalties, which translate to loss of business. Due to their informality, they do not generally qualify for Government services and subsidies as available to the larger enterprises.

Surveys consistently show that between 30% and 70% of all MSE sector employment in the region is in commerce and that the majority of traders are women. The remaining percent mostly men are being referred colloquially and officially as Jua Kali (Hot Sun)/ Nguvu Kazi (Work is strength) workers, and are involved in a variety of manufacturing and repair activities and in productive services such as metal fabrication, carpentry and joinery, textile, radio/electronics repair, hairdressing, motor vehicle, photography, herbal derivatives, chemical etc.

Although, some positive measures have been put in place to address some of the MSEs problems, limited access to know-how continues to be a major obstacle for the sector. Most of them, whether just starting or long established, lack skills or the information they need to be more profitable. They require advice on market opportunities, appropriate technologies, product diversification, quality control, occupational health and safety, and Business Development Services. The sector is characterized by horizontal growth and very few grow vertically.

Business competition in the MSE sector is often very intense particularly where many entrepreneurs produce and sell the same products. In order to increase incomes and create room for new arrivals, it is essential to address the issue of limited product diversity through marketing research, diversification, improving product quality, design and marketing.



Richard N. Muteti
Director, SMES-EA East Africa
Regional Project Manager, CISO-East Africa
CEO, KNFJKA

SMES - EAST AFRICA COMES TO THE AID OF SMEs

SMES - EAST AFRICA COMES TO THE AID OF SMEs

Kenya is a young economy with majority of business owners falling in the Small and Micro Enterprise (SME) category. For someone entering the business world for the very first time the task can be daunting; even seasoned business people sometimes find the going tough and occasionally need a hand up. Small and Medium Enterprise Support – East Africa (SMES,EA) has positioned itself as a one-stop shop for SMEs.

At SMES-EA, we recognize that information is power. We offer businessmen/women information on the products and services available in the market that would take their business to the next level. Depending on one’s business requirements, we are able to advise accordingly. For instance, a young entrepreneur who is only interested in balancing his books or doing a business plan, but does not have time or the resources to attend a Diploma course in one of the commercial colleges is referred to a trainer offering the said service. Whatever your need be it training, marketing, accessing credit or just formalizing the nature of your operations, we have got the answers.

We work closely with GS1 Kenya to ensure local and regional growth oriented traders access the bar code facilities. Lucy owns a confectionery shop in Rongai. She makes delicious cakes, and she was determined to expand her market beyond the residents of Rongai. She dreamt of having her products retailing in the local supermarkets. Every time she approached the local supermarket she was told she needed barcodes. She would approach another supermarket hoping this time she would be ‘lucky’, but it was the same ‘bar code story’ all over again. She approached SMES, EA and, as a one-stop strategic referral centre for SMEs and having Referral Agency with strategic Partners like GS1 Kenya. She left GS1 Kenya with the Bar Codes, a very happy customer. As far as her business vision is concerned, to use a cliché, the sky is now the limit.

We have embarked on launching the first ever SMEs service providers’ handbook. These organizations from Banks, Insurers, Trading Corporations, NGOs and anybody dealing with SME related issues will get a chance to tell their target audience where they are and what they have to offer. We will Endeavour to ensure every part of the country is a recipient of this handbook.

The publication will be distributed free of charge through our select partnership with various National and regional apex SME and Youth sector Based organizations in Kenya. The Handbook will facilitate the growth of a vibrant service sector for the SMEs. By ensuring that SMEs are able to easily access these services means the service providers will receive much more business

We live in a competitive age, the customer is very discerning in his tastes. For any Entrepreneur to stay on top of the game and make good returns, they need to offer quality products and/or services. Market accessibility can only be addressed by tackling Product Quality, Design and Competitiveness. The small business owners should be assisted by Business Counseling, Mentoring and Exposure. The role of Business Development Support Services cannot be gainsaid and SMES, EA is determined to fill these big shoes.

We are happy to be associated with GS1 Kenya and look forward to a continued relationship towards uplifting the Small Businesses in Kenya and the East African Region in general

Lydia Njoroge
Programs Director
SMES/EA

Conference on Business Environment Reform and the Informal Economy, 12th – 15th April 2010, Cape Town, South Africa.

The Donor Committee for Enterprise Development (DCED) has just concluded a conference on business environment reform and the informal economy focusing on -“How Business Environment Reform Can Promote Formalization- Learning From Our Experiences”
The purpose of the conference was to focus on practice and programme interventions that improve the business environment in order to enhance the opportunities for informal enterprises. The conference sought to better understand the kinds of reforms that allow informal economy actors to access new markets and contribute to growth.
It provided the opportunity for a wide range of donors, development practitioners and programme partners to share and reflect on practical experiences and empirical evidence in business environment reforms that has led to increased transition from the informal economy to formality
On the sidelines of the conference, participants visited the Green Market Square, Grand Parade and the Mitchell’s Plain all based in Cape Town
It was generally agreed that Business Environment Reform (BER) that addresses informality contains the following elements:

 Ensuring informal actors have a stake in reform processes

 Differentiating reform process to address specific target groups and informality drivers

 Reducing the legal and regulatory burdens on informal actors, while ensuring that the legal and regulatory framework is equitable, transparent and enforceable

 Promoting greater accountability between the state and informal actors

 Looking, learning and building on what works best and monitoring changes in the informal economy

It also became evident that on its own, Business Environment Reform (BER) is an inadequate response to the challenges faced by informal actors. Many of the drivers of informality are beyond the reach of business environment interventions. Thus consideration should be given to programme interventions that compliment Business Environment Reform (BER). These may include the provision of education and health services, housing and infrastructure, and the creation of social safety nets. It should not be forgotten that economic growth that creates a greater demand for formal employment is a powerful force that pulls informal business people and workers into the formal economy and into more productive and decent employment

we look forward to sharing with you the final report of the conference outcomes.

NEWS FROM THE SMALL BUSINESS SECTOR

Small & Medium Enterprise Support,East Africa (SMES-EA) becomes a member of The Kenya National Chamber of Commerce and Industry

Speaking at a brief ceremony of handing over the certificate of membership to the SMES-EA, today (19Th Feb.2010) at the chambers headquarters, the leadership of the two institutions agreed to work closely towards the promotion and development of the small and medium enterprises in the country, among areas of collaboration will be :

-engaging in building local and international partnerships that would lead
to access of grants, loans, programs, joint ventures, etc

-jointly engage in organization of Exhibitions and Fairs which will provide the platform for trade promotion for the members of the two organizations

That SMES, EA and KNCCI will collaborate in training programmes for the MSE Sector including Training Needs Assessment (TNA) and undertake the actual training. The two parties will identify those to be trained and the kind of training skills required

the two organizations will pursue other resources mobilization avenues other than through membership drive e.g. by engaging Development Partners, Corporate Social Responsibility (CSR), Joint Ventures as in Fairs and Exhibitions

Present during the above ceremony were:

-the chairman of The Kenya National Chamber of Commerce and Industry mr
Stephen B. Mbugua
-the Deputy chief executive of The Kenya National Chamber of Commerce and
Industry Mr. Peter G. Muiruri
-the Director of Small and Medium Enterprise Support, East Africa (SMES,
EA)Mr, Richard N. Muteti HSC
-The Programmes Director of Small and Medium Enterprise Support, East
Africa (SMES, EA)Miss Lydia Njoroge
-The Chief Executive Officer of the kenya association of young
entrepreneurs (KAYE) Mr.Tonnie Mello
And other senior officials from the two institutions


Lydia Njoroge
Programmes Director
Small & Medium Enterprise Support, East Africa (SMES, EA)
"Promoting SMES Growth in the EAC" for Jobs and Wealth Creation

KENASVIT SENSITIZATION WORKSHOP-NAKURU

MSE MEMBERSHIP SENSITIZATION WORKSHOP

the leadership of the Kenya National Alliance of Street Vendors and Infomal Traders (KENASVIT)a national alliance of street vendors,hawkers and informal traders in Kenya held a national leadership sensitization workshop whose main agenda touched on the pending MSE BILL.

Mr. Richard N. Muteti,CEO Jua Kali Sector was the lead facilitator and presenter on the above.

the workshop was attended by KENASVIT members drawn from Nakuru,Nairobi,Eldoret,Mombasa, machakos,Migori and Kisumu.the other invited guests included the Rift Valley PEDO,KAM,Member of parliament Representative and others.

KENASVIT is a membership umrella organization for several local urban street vendors,hawkers and informal traders associations.the national office for the alliance is located in Nakuru Municipality.the Alliance vision is "TO TRANSFORM STREET VENDING AND INFORMAL BUSINESS INTO CORPORATE ESTABLISHMENT"

we at SMES-EA congratulate KENASVIT for their advocacy and leadership they have shown in Kenya by organizing the street vendors and the informal traders-we join them in their slogan "LET THE PEOPLE TRADE"

The above meeting took place on on 16th,February 2010 at Kokeb Hotel,Nakuru

Small & Medium Enterprise Support-East Africa