We have made significant strides in advancing technological solutions over the past decade or so. According to GSMA, 84 percent of Africans will be connected to the internet by the end of this year.
A study by African Business projects that Artificial Intelligence and other emerging technologies will inject $1.5 trillion into the continent’s GDP by 2030. These economic outcomes will be crucial in accelerating development and economic growth.
Some of the United Nations’ Sustainable Development Goals (SDGs), which touch on entrepreneurs, such as SDG 8 and SDG 9, calling for Decent Work and Economic Growth and Innovation and Industry, respectively, have been significantly advanced by technology in the areas of automation and financial inclusion.
Technology has expanded connections and enhanced efficiency, which has been a boon for businesses.
Although we are on the right trajectory in adopting technology, there are still barriers that prevent entrepreneurs from using technology effectively to advance their businesses. One of the key issues we must address is digital infrastructure.
Some countries still have low internet penetration, which limits access to data. This leaves significant swathes of populations without access to digital tools, elbowing out potential entrepreneurs from utilising e-commerce and financial inclusion systems to save, invest and transact.
Public-Private partnerships are crucial in ensuring that infrastructure such as masts and satellites are available to access the digital space.
But access alone is not enough. Lowering the cost of entry is equally critical. For many small businesses, limited access to credit is hurting their aspirations.
The World Economic Forum indicates that, on a global level, despite Small and Medium Enterprises forming 90 percent of businesses and contributing to 50 percent of employment opportunities, about 32 percent of businesses cite access to credit as a stumbling block to their operations.
Network providers and other stakeholders can work closely to customise platforms that are geared towards access to credit. Through technology, we can promote financial inclusion among entrepreneurs by utilising mobile money platforms and transaction solutions.
Another major barrier is the skills gap within our communities, which can limit how effectively entrepreneurs run or grow their businesses.
There are basic skills that we may take for granted, but they are critical in sustaining businesses. Digital skills can streamline financial management, operational efficiency, networking and marketing.
According to APMG International, an accreditation organisation, the lack of critical digital skills has an impact on business productivity and growth, which hinders economic growth.
There are platforms in Kenya, such as the Digital Skills and Employment Advancement Programme (DSEAP) by KEPSA, that are crucial in linking up both entrepreneurs and professionals with digital training in artificial intelligence, cloud computing as well as cybersecurity to equip them with skills, since emerging technologies are shaping career and business advancement.
However, we have to take into account factors such as data privacy that may jeopardise their customers’ or even their security. How they interface and handle their customers’ data will determine the credibility of their business.
Issues such as inclusion should be taken into account, especially with Persons With disabilities (PWDs) to ensure they can access or participate in business environments on equal footing.
Given that MSMEs account for about 90 percent of businesses in Africa and are a major source of employment according to the African Union, breaking barriers through technology is a necessity for us to achieve sustainable development.
