New online platform gives crucial tips on starting and running firms

Kenyan start-ups can now instantly access crucial information on running a business locally, following the launch of an online portal intended to provide relevant resources for new and developing enterprises.

The portal dubbed Biz4Afrika, is the brainchild of global firm Microsoft and will provide important tips and guidelines to aspiring entrepreneurs on how to set up and grow their ventures.

Through the platform, investors will be tipped on financial planning and accounting, legal and regulatory issues, marketing and human resource, among others.

“The goal is to empower every African who has a great idea for a business or an application and to turn that idea into a reality, which in turn can help their community, their country, or even the continent at large,” said Microsoft Country Manager Kunle Awosika.

Chance hance to exchange ideas

The portal was launched during the Connected East Africa forum in which Microsoft was the title sponsor.

It will also give investors a chance to exchange ideas with like-minded entrepreneurs and take lessons from industry leaders in real time.

The launch is the latest in a number of recent efforts by both the government and the private sector to help grow Kenya’s start-ups.

“We have been cited by Harvard University as having surpassed the tipping point from primarily exporting raw materials to creating and exporting value-added goods and services,” said Mr Awosika.

“The continued shift from a labour-based economy to a knowledge economy will require increased online presence, particularly by SMEs, which contribute about 45 per cent of Kenya’s GDP,” he said. Studies have shown that a majority of small and medium enterprises end up closing shop because they are unable to turn their innovations from ideas into business.

POOR PLANNING

This is largely blamed on poor planning, lack of resources and existing information gaps, which make it hard for research.

Software developers in particular are losing lucrative opportunities for funding because they lack clear business plans and strategies to take their ideas to market.

Data from a recent World Bank report on the ease of doing business in East Africa indicates that despite several moves to institute reforms in business and governance, both local and international investors are still faced with stumbling blocks that limit investment.

Meanwhile, Communications Cabinet Secretary Fred Matiang’i has said the proposed regulations on dominance are not targeted at Safaricom but are meant to create order in the sector.

He said the government would support the regulator in its move to streamline the industry as long as the rules are objective and fair.

The Communications Authority of Kenya has proposed a set of 11 regulations, expected to come into force by mid-June, including a fair competition and equality of treatment clause that empowers it to automatically declare any telecommunications firm with a market share of more than 50 per cent dominant.

The move has elicited debate among business leaders who feel it is tantamount to punishing innovation.

“We’ve heard some operators complaining that the new regulations are targeting the market leader.

“That is not the true position. We support the regulator in the decisions that it will come up with so long as they are objective and fair,” said Mr Matiang’i.