SMEs’ access to funds minimal – report
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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