Why SMEs should share stories of their pain, struggles

Street market crowd at Lagos Island's commercial district. [File, Standard]

You have likely come across the ‘rags to riches’ story of that businessman or woman who one day on a mystical whim or strategic plan decided to open a shop to sell some product or provide a certain service.

The story will glorify how after a few months or whatever incubation period, the founder is making millions from the business venture.

Such stories motivate other would-be entrepreneurs to either quit their jobs as well or start some side hustle to tap into this profitable business environment.

It is only then that they realise it is not all rosy.

When you started, the road appeared well tarmacked, smooth with pavements and designated lanes showing speed limits, bumps ahead, climbs and descents - only for you to realise the tarmac vanished at the horizon and you have to dig your own road from there.

These stories about the uncertainties of running a small enterprise are what investors say should be shared, not just the joy that comes with making your first Sh1 million or inking that lucrative contract.

“Entrepreneurship is not easy, it is not for the faint-hearted,” said Small and Medium Enterprises (SME) Support Centre Chief Executive Linda Onyango.

“Many give up. It is important to share (those stories) because you will prevent people from giving up.”

Ms Onyango said running a business has to be mission-driven.

“It has to be something you want to do; it has to be a passion because it will be very hard. There will be very low moments, there will be moments you will cry. I have cried many times, because of rejection,” she said on the sidelines of the launch of ‘the SME Blue Pages’ platform in Nairobi last week.

“You go pitch somewhere, you are rejected. That is normal. They should just learn that it is normal to be rejected; what is important is that you keep moving.”

The SME Blue Pages’ is a digital platform that aims to give businesses global exposure for all made-in-Africa brands.

The event was attended by SME owners, leaders and officials from the Kenya Private Sector Alliance (Kepsa) and Kenya National Chamber of Commerce and Industry (KNCCI).

Eva Muraya, Kepsa director in charge of gender and SMEs, and also chief executive of communication firm BSD Group, said it is always easier to tell the stories of success.

“But it is better to tell the story of the in-betweens – what it means to be an SME in this country,” she said.

“I think we need to tell more stories of falling forward, falling seven times but rising eight.”

She said that all businesses, including the large corporates existing today, were once SMEs and such stories are key to growth.

“We need stories of, how did you land your first contract? How did you fund it? How did you recruit your first employee?” said Ms Muraya.

“SME is a serious business and as we get to this elections season, we must make a real case for SMEs.

“If your business was still operating at 5pm today, your shop is not closed. Even if you closed shop yesterday, know that you can open tomorrow, be proud of yourself,” she said.

During the interactive meeting, logistics, brand visibility and cost of advertising were highlighted among the top challenges facing SMEs.

Even with the digital age, it was noted that such transformation on how business is done has not been smooth for SMEs.

“During Covid-19, consultants told SMEs to open social media accounts, open Facebook. I met one SME owner who told me she opened an Instagram account but did not even have one like,” Onyango said.

“We want all of you to go digital but it is not easy to direct traffic to your Instagram. It is so easy on paper, but practically it is not.”

It is such challenges that led to the birth of the SME Blue Pages, which is meant to connect SMEs across the continent.

Onyango said, unlike large corporates, information about SMEs is disintegrated  

“Hustlers come to us and say ‘I have this order, how do I fulfil it?’ How do we make information so accessible and not for the elite?” she posed.

“Right now through our platform, any SME can access any service that they want whether logistics, insurance or finance.”

KNCCI Chief Operating Officer Patrick Nyangweso said financing has been a key impediment to the passion and growth of SMEs.

He said most banks would only consider lending to government and large corporates.

“What is left for SMEs are small financial institutions such as Saccos because they (banks) demand a lot of documentation including collateral and this has been a very tough space for SMEs to really thrive and leaves them with little opportunity in terms of financing support,” Mr Nyangweso said.

He further said the SMEs sector is the most regulated.

“Today even with the devolved structures if you want to set up your business, or even transfer property from Nyandarua County to Migori, for example, you will pay a lot of multiple taxes and licences,” he said.

“This over-regulation has been a key impediment to the growth of SMEs and all of us must engage the government and other development partners in a constructive dialogue, and harmonise on this space for the SMEs to be able to thrive.” 

Nyangweso said data is key for decision making and to support SME growth.

“We call upon everyone to invest much in data. Data will help to identify areas of opportunities, especially how to expand your business,” he said.