Small and Medium Businesses Must Beat Competition Through Technology

By Harrison Kivisu & Mwakwaya Raymond

Email, thecoastnewspaper@gmail.com

Micro small and medium-sized enterprises sector players must use digital technologies to enhance their market market share online.

Safaricom company chief enterprise business officer Cynthia Kropac, says MSMEs in Kenya continue to face significant challenges like inadequate knowledge and skills in the rapidly changing technology business landscape.

Kropac, speaking on September 4, 2024 in Mombasa adds that SMEs ought to consider ‘social commerce’ as part of their performing business model if their main aim is to exploit vast business opportunities in Kenya’s expanding digital economy.

Her remarks comes in the wake of the fourth series’ _Grow_ _with_ _Safaricom_ _Business_ Coast edition forum convened by the company held in the county.

The engagement gave the MSMEs an opportunity to exchange ideas on how they can leverage digital technologies to boost their market reach, streamline operations, and create a strong brand presence online.

“Despite the significant contribution MSMEs make to the economy, they continue to face considerable challenges, such as inadequate knowledge and skills and rapid technology changes among others that hinder the growth of their businesses.”

At Safaricom, according to her they believe in the power of technology and its potential to transform businesses, which is why they are hosting the ‘Grow with Safaricom Business’ to empower MSMEs.

In her view, the Mombasa forum will make an impact since the coastal city sits as a transit point for exports and imports for Kenya and the corridors of land locked countries of eastern and central regions.

She urged players to take advantage of the Kenya’s national chamber of commerce and industry Mombasa chapter that has proven itself as a force to reckon with on matters business promotions.

“If you look at or even look at the Chamber of Commerce, the most active chapter in the whole of Kenya sits right here in Mombasa.”

Through former Kenya Tourism Federstion chair Mohamed Hersi, the industry players said the forum had lived up to its expectations since all stakeholders and entrepreneurs were brought under the same roof.

He challenged coastal counties and national governments to create an enabling environment for MSMEs to thrive. 

According to him some of the stumbling blocks include double taxation and challenges in accessing business permits among other bad policies.

“My message to county governments and also the national government is to enable the environment for MSMEs to grow, we have a lot of issues that are derailing this sector that need to be addressed by respective governments.”

Kenya Institute of Public Policy, Research and Analysis indicate that there are over 7.4 million MSMEs employing approximately 14.9 million Kenyans in various sectors of the economy, thus, generating 30 per cent of the GDP.

The global economy is rapidly digitalising as it is estimated that 70 per cent of new value created in the forthcoming decade will be based on digital space business models.

Through its fourth series, Safaricom aims to promote the digital transformation of enterprises to boost their competitiveness and drive the country’s economic prosperity.

The forum brought together a number of MSMEs from the region which equipped the entrepreneurs with knowledge that would enable them to scale their businesses through technology.

The series were launched in March this year and were expected to provide ample networking opportunities for MSMEs to connect with peers, industry experts, and potential partners.

The evolution of technology in Kenya has forced businesses to find good models that would ensure their customers get satisfied without having any challenges anyhow.

The key target of the conference was to help MSMEs get inspired, empowered, and scale up with ease to exploit the digital space. The future of businesses in Kenya is rapidly shifting towards social media. 

The growth of business technology that helps small businesses improve their modes of interacting with their partners or markets’ frontiers are making the economy assume the village globe connection.