Small and medium-sized enterprises (SMEs) have been challenged to leverage on technology and adopt industry networks to position their businesses better for growth.
Industry players noted that for small businesses to flourish, adoption of technology is key as it helps in data management, enhanced protection against cyber threats, facilitates improved service delivery and enables access to modernized, easy payment systems.
Speaking during a symposium on leveraging digital technology for growth and sustainability of SMEs at Mount Kenya University (MKU), the industry experts reiterated that technology fosters innovation which is significant in maintaining a competitive edge in the present-day business environment.
Led by Prof. Deogratius Jaganyi, the MKU Vice-Chancellor, the stakeholders called on young entrepreneurs to use the available tools to kick start marketing their products digitally.
He singled out use of smartphones saying that most buyers no longer make orders physically and that use of mobile marketing strategies will result in higher conversion rates and customer loyalty and ultimately increased profits.
“Digital tools such as cloud computing, inventory management software and automation streamline business processes reduces operational costs and improves efficiency. SMEs leveraging enterprise resource planning systems can manage resources effectively and make data-driven decisions,” stated Jaganyi.
“The adoption of mobile banking and fintech solutions like Mpesa and digital lending platforms allow SMEs to access credit, manage transactions and streamline financial operations,” added the VC.
The VC noted that SMEs are the backbone of Kenya’s economy contributing over 30 percent of the GDP and employing millions. He however noted that many face challenges such as limited access to finance, market constraints and inefficiencies.
“Digital technologies offer a transformative solution to these challenges, fostering innovation, efficiency and competitiveness,” Prof Jaganyi said.
The don quipped that for SMEs to fully leverage on digital technology, capacity building and training are crucial adding that public-private partnerships should invest in digital literacy programs, mentorship and knowledge-sharing initiatives to equip entrepreneurs with the necessary skills to navigate the digital economy.
On his part, Chief Executive Officer · Ellegant Credit Limited Dr. Harrison Mutegi revealed that most young entrepreneurs with brilliant ideas have been grappling with inadequate funding to convert their ideas into businesses.
He further noted that most of them have been lacking the requisite knowledge of kick starting their businesses adding that poor technological adoption has also seen most of them remain sluggish.
“We are helping youngsters convert their ideas into actionable businesses. We come in by providing additional capital, creation on awareness and trainings on how to rise from a small seed to a big tree. Money is in businesses and it is through SMEs that we can turn around the economy,” stated Mutegi.
Mutegi called on stakeholders to continue supporting start-ups saying that given the right environment, entrepreneurs have the capacity to turn-around Kenya’s economic situation for the better.
During the event, students at higher learning institutions were challenged to pursue businesses and consider becoming employers at a time when the job market continues to shrink despite the high number of graduates churned out by universities annually.
Dr. Mercyline Kamande, a researcher noted that businesses that embrace technology are able to remain competitive and resilient adding that in today’s digital era, only entrepreneurs with digital skills are able to thrive.
She thereby called on young entrepreneurs to positively adopt digital technology to spur the necessary growth in their businesses.
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She also noted that the government and policy makers should establish policies that promote digital infrastructure, cyber security and affordable internet access to enable SMEs to thrive in a digital environment.
“Financial institutions and investors should also expand digital financing options tailored to SMEs, offering low-interest digital loans and grants for technology adoption,” Dr Kamande said.
The researcher maintained that the future of SMEs in the country is digital noting that by embracing digital technology, small traders can unlock unprecedented opportunities for growth, efficiency and sustainability.
“As stakeholders, it is our collective responsibility to ensure that SMEs are equipped with the resources, skills and infrastructure needed to thrive in the digital age,” she said.
Students led by Shadrack Oguta, a Masters student in Business Administration called for further training among young entrepreneurs to foster economic growth.
By helping youngster venture into businesses, the students noted that more jobs will be created thereby helping solve the joblessness crisis that Kenyans have been grappling with.
By Kamau Njoroge.
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