Benchmark with peers, forum tells small enterprises

Small and Micro-Enterprises (SMEs) should benchmark with their peers from other parts of the country in order to improve their systems and upscale standards, Mombasa-based entrepreneurs have been told.

Participating in the annual Top 100 Mid-Sized Companies survey would enable them to reap the benefits of networking with people of similar goals and make them part of a network that offers members invaluable insights in the world of enterprise, Business Daily managing editor Ochieng Rapuro said.

Mr Rapuro said a number of promising businesses were shying away from entering the competition fearing visits from the taxman, a fear he described as unfounded because participants are compliant with most of the tax agency’s demands and ready for scrutiny.

“One of the requirements for participating in this survey is submission of three years’ audited accounts, meaning compliance with one of the most important tax obligations,” he said.

“Companies with three-year audited accounts have put their processes in order after being audited by a member of the ICPAK (Institute of Certified Public Accountants of Kenya). I think these are the people who should be less concerned about the taxman,” he added.

Mr Rapuro spoke on Friday at Serena Beach Resort during the Mombasa County launch of this year’s Top 100 Mid-Sized Companies survey.

Out of the about 1,000 entries that are submitted for the survey which is in its ninth year, there are thousands more out there who stay out because they cannot stand the test of scrutiny that goes with the survey, Mr Rapuro noted.

He, however, said those who have had the courage to come out in the open have gained from the survey, including increased media exposure, high level recognition by partners and consumer trust.

An initiative of consulting firm KPMG and the Nation Media Group, the survey tracks SMEs with annual turnover of between Sh70 million and Sh1 billion with those exceeding the Sh1 billion mark joining Club 101.

Rose Lutta, the NMG marketing director, said the survey profiles and celebrates excellence in the SME sector, which accounts for more than half of the jobs in the country.

“As organisers of the survey we felt it is important to showcase, to motivate and to grow the number of people coming into the SME market and we will continue to give them an opportunity to grow their businesses,” she said.

The survey has also launched a marketing portal for participating, the Top 100 Market Place, which will be used by companies to share information and experiences,” she added.

Last year, the survey ranked top a Mombasa-based pharmaceutical company, Pharmaken, co-owned by two directors Samier Muravvej and Leonard Njagi, as the most innovative and fastest growing company.

The 2016 Survey which was officially launched on May 17 is scheduled to close on 31 August with data collection from interested companies having commenced on May 23.

Those attending the launch got to hear from their fellow entrepreneurs including Dr Muravvej.

Other entrepreneurs who shared their success stories were Mohammed Jama of Logistic Solutions Ltd, Julie Munyi, (United (EA) Warehouses Limited) and Ivan Patrick De Souza of Coast Industrial & Safety Supplies Limited.

“Participating in the survey last year when we were ranked 29th was an exciting and wonderful experience for us and what I would say is that as a company, we will never be the same,” said Ms Munyi, the operations manager at United (EA) Warehouses Limited.

Entrepreneurs who have been recognised through this survey have attested to how this recognition catalysed transformation of their businesses as an avenue that positioned them to strategic investment or acquisition.

Some of the benefits that these Top100 companies enjoy are forums that are hosted by the sponsors of the survey in addition to those by the founders — KPMG and NMG.

The forums support networking and building of relationships which are key to every business.