Small businesses, which makeup over 98% of businesses in Kenya, are the driving force behind innovation and economic growth. They are the engine of Kenya’s economy by accounting for 33.8% of the national output and employing 30% of the workforce, as per KNBS 2022 survey.
For their growth and sustainability, small businesses are key hubs in bringing innovations, new ideas, products, and services to the market. The success of small businesses signals a competitive and dynamic business environment that attracts investment and fosters economic growth. But, 46.3% of small businesses close down within their first year of operation.
So, here are 7 small business growth tips to help your small business outlive the statistical mark.
1. Leverage Retail Management Systems to Streamline Operations
Retail management software are a valuable asset for small businesses in Kenya, streamlining operations and fostering growth. RMS software like BizKit optimize inventory management, accelerate transactions through efficient Point of Sale (POS) systems, and facilitate customer relationship management (CRM) for personalized interactions. They aid in employee management, multi-channel sales integration, and financial tracking, ensuring compliance with local regulations. Moreover, the software prioritize data security, safeguarding sensitive information. Their scalability accommodates business growth, making them a versatile tool for small business’ growth and scaling in the dynamic retail landscape of Kenya.
2. Leverage Digital Marketing
In a world that is increasingly reliant on digital platforms, small businesses must establish a strong online presence. To reach a wider audience, they need to utilize social media, search engine optimization (SEO), and email marketing, among other digital marketing techniques. According to a survey conducted by the Communications Authority of Kenya, over 21 million Kenyans have access to the internet, making digital marketing a powerful tool for small business growth.
3. Adopt Mobile Payment Solutions
Kenya has been a pioneer in mobile payment solutions, with services like M-Pesa gaining widespread adoption. Small businesses that integrate mobile payment options, and other alternative payments, enhance customer convenience and streamline transactions. This move not only caters to the local market preferences but also positions businesses for potential international transactions.
4. Invest in Employee Training
Human capital is a critical asset for any business. Allocate resources for continuous training and development of your employees. Well-trained staff not only enhance productivity but also improve customer satisfaction. According to a survey by the Federation of Kenya Employers, investing in employee development can result in a 25% increase in overall business performance.
5. Explore Government Support Programs
The Kenyan government has implemented various support programs for small businesses. Stay informed about available grants, subsidies, and training opportunities. Organizations such as the Micro and Small Enterprises Authority (MSEA) offer valuable resources and assistance for small business owners looking to expand.
6. Build Strategic Partnerships
Collaboration is key to business growth. Forming strategic partnerships with other local businesses or industry players can open up new opportunities, widen your customer base, and reduce operational costs. Identify complementary businesses and explore ways to collaborate for mutual benefit.
7. Diversify Product or Service Offerings
To remain competitive in a dynamic market, consider diversifying your product or service offerings. Conduct market research to identify emerging trends and customer needs. Expanding your range of offerings can attract new customers and create additional revenue streams.
8. Embrace Financial Management Practices
Effective financial management is essential for sustainable growth. Keep accurate records, monitor cash flow, and budget wisely. The Central Bank of Kenya provides resources and guidelines for financial management, and adopting these practices can help small businesses navigate economic challenges.
Partner with BizKit to Grow your Small Business
Small businesses in Kenya can thrive by embracing retail management systems, adopting strategic digital marketing, embracing mobile payment solutions, investing in employee training, and building strategic partnerships, among other practices. Supporting small businesses’ growth leads to increased employment, enhanced national output, reduced poverty levels and attractive investments in the country. BizKit partners with small businesses to provide mobile POS systems that help in business management, inventory tracking, and mobile payment systems. Talk to us here to get started.
