Business leaders root for pragmatic solutions to address high unemployment

Kenya’s economy is projected to grow by 5.5 per cent in 2023 and hit 6 per cent by 2024. This growth comes as the country expands its spending in infrastructure, laying the foundation for a more robust economic environment. Business leaders recently gathered at the third Abojani Economic Empowerment Forum where they emphasized the significance of having bankable ideas to drive an entrepreneurial ecosystem in the country. The leaders highlighted that economic empowerment could be the solution to the pressing issue of high youth unemployment, which is currently at 30 per cent. One of the key points raised during the forum was the misconception among young people that lack of capital is the primary barrier to starting a business. Business leader Mr. Smith stated, 'contrary to what most young people say, the reason they are not doing business is not capital. I think I hope I was able to persuade us that capital is the least important in terms of thinking about your business. The most important is actually having a bankable idea.' This insight underscores the importance of developing viable business concepts that can attract financing and support. Moreover, the availability of funding was emphasized during the discussions. Mr. Smith mentioned that numerous banks in Nairobi offer substantial loan amounts without requiring collateral. He noted, 'if you have a bankable idea, then there are so many banks. Almost all the banks have many branches in Nairobi. If you look at the places you can walk to and I've even seen some of them even advertising that you can get up to 10 million shillings without security.' This highlights the opportunities present for aspiring entrepreneurs who can present well-thought-out business proposals. Another crucial aspect emphasized by the business leaders was the importance of education and skill development in managing small businesses. Equity Bank, for instance, provides financial literacy and entrepreneurship training for free to its customers, including youth and women. By equipping individuals with the necessary knowledge and skills to run businesses effectively, the barriers to entrepreneurship can be lowered, enabling more people to venture into business. In addition to education, the leaders addressed the challenges posed by information overload in today's digital age. With the abundance of information available online, individuals need to navigate through the noise to access relevant and reliable guidance. Mr. Smith highlighted the need for curated content, thought leadership, and mentors to assist individuals in making informed decisions and acquiring the right skills. By providing curated sources of information and mentorship, the gap in accessing accurate guidance can be bridged, empowering individuals to make sound financial choices. In conclusion, the Abojani Economic Empowerment Forum brought to light essential strategies for addressing unemployment and fostering entrepreneurship in Kenya. By focusing on developing bankable ideas, leveraging available financing opportunities, investing in education and skills development, and providing curated information sources, business leaders are paving the way for a more inclusive and robust economy. Overcoming the challenges of unemployment requires a collaborative effort from both the public and private sectors to create an enabling environment for aspiring entrepreneurs and job seekers.