1. SME’s and Policy EFMD George Njenga PhD, MGCI, MBA, Bsc, CPA (K) DVC Research, SU Dean, Strathmore Business School

2. Understanding SME’s Understanding SME’s Managing Obstacles Interventions Possible LegacyLegacy Agenda

3. Understanding SMEs   The common good of society (employment, wealth, Civilization etc.)   Social Capital   Social Impact Investing   Obstacles and Informal Sector

4. Common Good Individual Liberty or the Common Good? SMEs support the Social fabric and Networks that helps the welfare of the any community; education, belonging, market information. Much like the Guilds and Cottage Industries did in the past…(In Germany and the UK) Laura J. Spence and Rene Schmidpeter, 2003

5. Social Capital –Microenterprise: a firm with fewer than 10 employees –Small enterprise: a firm with between 10 and 50 employees –Medium Companies with 50 to below 250 employees MSE sector contributes 18.4 percent to Kenya’s GDP, about 25 percent to non-agricultural GDP, and about 80 percent to employment. Available statistics indicate that over 95 percent of all firms in Kenya are MSEs KEPSA, National Business Agenda II. Iarossi, Giuseppe. “An assessment of the investment climate in Kenya. World Bank, 2009.”

6. Social Impact Investing Impact Investing refers to investing in enterprises which have a substantial business activity that deliberately generates measurable positive social and/or environmental impact to the society and at the same time achieves substantial direct financial returns. –All Impact investing initiatives in Kenya are directed towards the SMEs.

7. Obstacles to SMEs Difficulty in Accessing –finance, –tax rates and administration –business regulations –skills and access to technology –infrastructure and government services –limited voice, and –corruption.

8. In Practice Firm SizeMost Cited Second Most Cited Third Most Cited 5-19 Employees Tax Rates Access to Finance Practices of Informal Firms 20-100 Employees Crime, Theft, Disorder Tax Rates Practices of Informal Firms 100+ Employees ElectricityTax Rates Crime, Theft, Disorder

9. Managing Obstacles Policy and Funding on SMEs Training and Development –Funding Institutions –Zero rating funds to this sector George Njenga, Dean, Strathmore Business School9

10. Managing Interventions Policy development and Unity (integration) –Governments to set aside money specifically for impact investing. –Feed-in-Tariffs policy (Energy) –The Environmental Management and Co- ordination Policy (Sanitation and Water) –licensing reform program: Various reforms have been made to reduce the duration of registering business in Kenya. –Policy Response to the challenge on immigration –Community Integration and Economic Agreements George Njenga, Dean, Strathmore Business School10

11. Legacy Time Growth Let your offspring water the river of life……

12. THANK YOU! George Njenga, Dean, Strathmore Business School12