Thousands of traders in the informal business are likely to miss out on loans from the
For instance, entrepreneurs operating as sole proprietors may not access the funding, according to the
"There will be no money given to an individual. Only the micro or small entrepreneurs in groups and whose names will be with the registrar of enterprises," said Simon ole Nasieku, a member of the authority's board.
"The need for the fund is to boost business of the SMEs to expand their ventures and create more employment opportunities in
The Micro and Small Enterprises Act provides that a micro enterprise should have a maximum turnover of Sh500,000 annually and employ a maximum of 10 people.
For a small enterprise, the annual turnover should be between Sh500,000 and Sh5 million and employing between 10 and 50 people.
Mr Nasieku said the authority intends to spend Sh500 million in training of SME owners on product innovation, entrepreneurship skills and market volatility before they can apply for the cash.
"The fact that the fund is supposed to benefit SMEs for the larger benefit of the Kenyan society means that they need to be enlightened on how to manage the money to grow their businesses and give others opportunities to make a living," Mr Nasieku said.
Before accessing the loans, all informal traders will be registered afresh through the office of registrar of enterprises. The Act provides for the establishment of registrar of enterprises whose role is to keep the SMEs' data.
"Current estimates show that we have 1,200 informal traders who qualify to be in the micro and small enterprises but fresh registration will be done by the registrar of enterprises so that we can know the actual figures," said
Previous studies on the factors hindering growth and development of SMEs in
This is an addition to a deficit in technical skills which affects their ability to produce competitive products. Those in the manufacturing sector for instance, Mr Afifu noted the necessity of enlightening them on the significance of patenting their products to avoid loss of their benefits.
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