The SME sector in Kenya, primarily comprising informal businesses, makes up approximately 40 percent of the country's GDP.
A gendered analysis of related policies in Kenya, as reported by Oxfam, reveals that 31.4 percent of SMEs in Kenya are female-owned, 48 percent are male-owned, and 17 percent are co-owned by both men and women.
While the World Bank states that 58 percent of SMEs in Africa are owned by women, these businesses still face significant challenges that hinder their progress compared to those owned by their male counterparts.
These challenges are primarily rooted in long-standing structural issues, such as limited access to finance, skill and labour gaps, exclusion from crucial networks, and social and legal constraints influenced by societal norms.
Despite these obstacles, women-owned businesses have a recognised impact and play a vital role in driving economic development by creating employment opportunities, fostering greater economic growth, and harnessing women’s productive potential.
To ensure the success of women business owners and de-risk SMEs, substantial efforts are required.
Providing comprehensive support throughout their entrepreneurial journey necessitates the implementation of robust frameworks that facilitate networking opportunities, access to resources and knowledge, customised business support from experts, and capital availability.
While initial efforts have been made, it is evident that further action is necessary to fully unlock the potential of women-owned businesses and create an environment where they can thrive.
In line with this goal, the National Bank of Kenya (NBK) has, for example, implemented financial inclusivity products to address sustainable development and banking practices.
Strategic Partnerships are key drivers of startup, growth, and sustainability of businesses.
It is crucial for government institutions, public organisations, and private entities to proactively create opportunities and foster an enabling environment for women entrepreneurs.
Government institutions can implement policies and programmes promoting gender equality and empowering women in business.
These initiatives can involve providing financial assistance, offering training and skills development programs, and establishing supportive regulatory frameworks.
The writer is the Head of Personal Banking at the National Bank of Kenya.
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