This report aims to understand and assess the current provision of business development support (BDS) services for small- and medium-size enterprises (SMEs) in Kenya, highlighting changes that have taken place since 2015.
The Kenyan entrepreneurial ecosystem has been evolving since 2010. This evolution has been aided and underpinned by government policy, interest from international donors, a tech boom, and the growth in impact investment. This evolution also links to the growing momentum and global interest in the promise and potential of supporting micro, small and medium-sized enterprise (MSME) growth and entrepreneurship as a long-term, sustainable, and viable solution to address economic development and the Sustainable Development Goals (SDGs). Despite challenges such as economic downturns, COVID-19, and terrorism, the entrepreneurial ecosystem has demonstrated its strength and resilience.
The number of Business Development Support organisations is quite high with over 170 organisations involved in some form of BDS provision. Despite increasing expansion to regional economic blocs since 2015, the majority of organizations still operate in Nairobi. Cohort-based programs are the most frequent type of program offer, and there has been an increase since 2015 in the number of consulting companies offering Strategic BDS through programs and tailored support. Hubs are also a growing feature of the Strategic BDS landscape, particularly outside of Nairobi, offering incubation services, workspaces, and mentoring with a focus on early-stage businesses, youth, and tech. International NGOs have also increased their capabilities to offer BDS services. Women and youth continue to be target populations, and themes and sectors such as climate, social enterprise, agriculture/agribusiness, and tech are featured in many organisations and programs.
This reports highlights the trends in the ecosystem that have influenced the provision of strategic BDS to SMEs in Kenya. The report also identifies gaps in the ecosystem of support and makes recommendations for improvements.
The report was commissioned by the Argidius Foundation and produced by Enabling Outcomes with contributions from Growth Africa, the Association of Countrywide Hubs and Asoko Insights who surveyed close to 200 BDS providers in Kenya.
The structure of the report by section:
- Introduction
- Kenya Country Overview
- The Kenyan Entrepreneurial Ecosystem
- 2023 BDS Landscape
- Other Ecosystem Actors
- Government’s Role
- International Support for Enterprise Development
- Observations
- SWOT Analysis
- Recommendations
- Appendix : Categorisations and Examples
