SMEs’ ac­cess to funds min­i­mal – report

The Star (Kenya) - - News -

A ma­jor­ity of small and medium en­ter­prises are un­able to eas­ily ac­cess funds, put­ting their growth and de­vel­op­ment in jeop­ardy. A report un­veiled yes­ter­day by busi­ness con­sul­tancy firm, In­tel­lect, states 68 per cent of SMEs in Kenya have a no­table credit gap es­ti­mated at $5 bil­lion (Sh500 bil­lion). SMEs ac­count for 80 per cent of Kenya’s em­ploy­ment and 20 per cent of Gross Do­mes­tic Prod­uct. The re­search shows most lo­cal SMEs are sus­tained through self fi­nanc­ing, while 50 per cent have never ap­proached a bank. Only 36 per cent have ac­cess to loans. The study notes that while an­gel and seed in­vest­ing trend is on the rise lo­cally, only two per cent of Kenyan start-ups are funded by an­gel in­vestors, most of which are in the ICT sec­tor.

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Jua Kali ar­ti­sans

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