By Shamsy Feisal
In Kenya’s current economic climate, entrepreneurship has become more than just launching a business venture; it embodies resilience, problem-solving, and the ability to spot opportunities. As inflation and rising taxes affect small businesses, young entrepreneurs nationwide are finding ways to adapt and thrive. Our report explores the role of entrepreneurship and its impact on the economy, focusing on the hurdles and the unique strategies entrepreneurs are using to overcome them.
Samuel Mathew, chairperson of the Young Entrepreneur Forum (YEF), shared insights into the value of entrepreneurship in an interview with Mtaani Radio. A multi-faceted entrepreneur himself, Mathew operates a dog breeding business and is also an investor in real estate. His background gives him a practical perspective on both the rewards and the struggles that come with entrepreneurship, especially in a time of economic uncertainty.
Mathew underscored that recent economic pressures, including the introduction of higher taxation and new fees on small enterprises, are making it more difficult for young entrepreneurs to reinvest their earnings. Data from the Kenya National Bureau of Statistics (KNBS) highlights that over 30% of small businesses in Kenya fail within the first three years, primarily due to financial constraints and lack of access to affordable credit. For youth entrepreneurs who often lack financial security or capital backing, these barriers can be particularly daunting.
Despite these challenges, Mathew remains optimistic about the future of entrepreneurship in Kenya. He encourages young people to focus on their creativity and innovation, as these qualities can transform simple ideas into viable business opportunities. According to him, “Economic challenges should not discourage young entrepreneurs. Instead, they should push us to think creatively about sustainable solutions.”
Mathew’s advocacy aligns with data showing that youth entrepreneurship can contribute significantly to economic growth and job creation. As Kenya’s youth make up over 60% of the population, cultivating a supportive environment for young entrepreneurs could be essential for future economic stability and employment generation. The Ministry of Youth Affairs and Sports estimates that over 800,000 youth join the job market each year, with only a small percentage able to secure formal employment. Entrepreneurship, therefore, provides a crucial avenue for income and job creation among Kenya’s youth.
He further emphasized the importance of mentorship and networking opportunities, suggesting that youth-focused organizations, like the Young Entrepreneur Forum, could play a pivotal role in providing support, resources, and training for aspiring entrepreneurs.
As Kenya’s youth rise to the challenge, entrepreneurship is proving to be a critical tool for self-reliance and community upliftment. From small-scale vendors to tech innovators, young people are finding ways to adapt, create, and grow, contributing to a stronger economy and more resilient society.
A Call to Action for Young Entrepreneurs
Samuel Mathew’s parting words serve as a call to action for Kenya’s youth: “The power of entrepreneurship lies in recognizing opportunities, even in challenging times. It all begins with an idea and the courage to bring it to life.” For Kenya’s young entrepreneurs, the road may be rocky, but the potential for impact and growth is undeniably vast.
The spirit of entrepreneurship, as Mathew highlighted, remains a powerful force for change, one that can drive economic resilience and provide a sustainable pathway out of poverty for many Kenyans. With ongoing support from both private and public sectors, the potential for Kenyan youth to overcome economic barriers and shape a brighter future remains promising.
