Ashoka – 20 Challenges for 20 Entrepreneurs

Ashoka, the world’s largest community of social entrepreneurs, with support from its global network of Fellows, business entrepreneurs, policy makers, investors, academics, and journalists works collectively to ensure that social entrepreneurs and their innovations continue to inspire a new generation of local changemakers to create positive social change.

During the past three decades after its launch, Ashoka has responded to a wider range of programs and initiatives to deal with the citizen sector’s growing needs by launching thousands of social entrepreneurs and helping them succeed.

In continuation of its efforts to achieve its objectives, Ashoka has now taken up to explore the challenges facing the world today and as a result it has determined 20 main issues that require an immediate attention of excellent entrepreneurs (social or business).

Find out more by visiting http://www.yipekenya.org/Ashoka – 20 Challenges for 20Entrepreneurs.htm

2011 Chase Bank Enablis ILO Business Launchpad competition

The Enablis Entrepreneurial Network East Africa, Chase Bank and the International Labour Organization launched the annual business plan competition aimed at supporting emerging and existing entrepreneurs on July 5th 2011.

The 2011 competition got a boost when the ILO’s Youth Entrepreneurship Facility generously increased their sponsorship to share the title sponsorship with Chase Bank.

The competition is also supported by Inoorero University, Business Daily, Safaricom Foundation, MobiKash, Rhino Special Products and the Kenya ICT Board.

The competition is a platform for Kenyans with business ideas to realize their dreams.

For further information, visit http://www.yipekenya.org/2011 Chase Bank Enablis ILO Business Launchpad.htm

Tanzania Entrepreneur of the Year Award

Nominations for the Tanzania Entrepreneur of the Year Award are open and all entrepreneurs across Tanzania are encouraged to apply.

For more information visit http://www.yipekenya.org/Tanzania Entrepreneur of the Year Award.htm

Ernst & Young Entrepreneur of the Year Award

Ernst & Young Entrepreneur of the Year award encourages entrepreneurial activity among those with potential and recognises the contribution of people who inspire others with their vision, leadership and achievement.

The Ernst & Young Entrepreneur of the Year award is open to applicants from Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.

For more information visit http://www.yipekenya.org/Ernst & Young Entrepreneur of the Year Award.htm

New interactive Business Finance Tool launched for Kenyan small business owners

Financing is the lifeblood of a business. Whether one is starting an enterprise or if they are seeking to expand their business – the lack of money can be detrimental.

After having polled its users, the Youth Interactive Portal for Enterprise - YIPE (www.yipekenya.org) found that the reason for the low uptake of formal business financing opportunities among Kenyan small business owners was not due to perceived barriers such as tedious application processes as previously thought. The main reason amongst the sampled business owners was simply that they did not know of the availability of business financial products on offer.

This finding spurred YIPE to develop and launch its Business Finance Interactive Search Tool (www.yipekenya.org/Business finance.htm) which enables business entrepreneurs in four easy steps to access information of business financial products that suit their stage of business. 

This product easily reduces the time and expense required in searching for appropriate financial products. As a value add-on, users can also access information from a database of over 1,000 entries (and rising) of financial sources in the county their business operates in.

Having the available financial product information in one place makes it possible for users to find banks and micro-finance institutions near them as well as compare the various financial products from multiple providers.

Users are given the options to select their business stage, the type of financing required and the county they reside in. YIPE’s business finance tool then presents them with a list of financial institutions (commercial banks, micro-finance institutions etc) whose products match their criteria, along with the providers’ contact information.

The Business Finance Interactive Search Tool is available on www.yipekenya.org/Business finance.htm and is free for all users.

For the time being, YIPEs Business Finance Interactive Search is available for Kenyan based businesses only.

About the Youth Interactive Portal for Enterprise – YIPE

Since its founding in 2008, the Youth Interactive Portal for Enterprise has emerged as a highly valued source of quality content for both aspiring and operating entrepreneurs. The Portal was one of the winning case studies for the Society for New Communications Research 2009 Excellence in New Communications Awards in the Online Publishing – Technology Innovation category. In 2010, YIPE was named the Kenyan partner for the Global Cleantech Ideas competition which is the search for the world’s best social enterprises that proactively address environmental degradation.

For more information, visit www.yipekenya.org and follow @yipeorg on Twitter.

Yipe Updates - May 30th - June 3rd

Schwab Foundation Social Entrepreneur of the Year 2012

The Schwab Foundation for Social Entrepreneurship has started the search and selection process for the Social Entrepreneur of the Year 2012. The competition is aimed at identifying outstanding entrepreneurs across the globe. more »»

Call for Expression of Interest for Research Consultant on Barriers to Youth Entrepreneurship

The Youth Congress is inviting expression of interest from highly motivated consultant on survey to analyze the barriers to youth entrepreneurship in Kenya. more »» 

Article: Top 10 Mistakes Every Entrepreneur Should Avoid

Starting a business is always risky, and the chances of success are slim. Research on several entrepreneur businesses has revealed that, over 50% of small businesses fail in the first year and 95% fail within the first five years.

What contributes to the failure of 95% of small businesses and success of only 5% of the entrepreneurs? Chances are that the failure types are making one or all of the following mistakes. 

Read on to increase your odds of succeeding »»

What exactly does Entrepreneurship mean?

One of the most frequent questions we get on Yipe is what exactly does entrepreneurship mean?

And is being an entrepreneur inborn or can it be learned?

Here is a digest we have compiled that should answer those questions and more.

Access the Entrepreneurship 101 directory »»

Youth entrepreneur profile update: Josephat Karinga of RISTECH Solutions

Josephat Karinga of RISTECH Solutions was one of the first entrepreneurs we profiled for our Get Inspired! series. His story on how he ventured into enterprise was inspiring, particularly his advice to aspiring entrepreneurs. We got the chance to catch up with Josephat recently to find out how 2010 was for RISTECH and what his aspirations are for the new year.

To read our interview with Josephat, visit http://bit.ly/h48sDn

Lessons on entrepreneurship and innovation from Brazil

Yesterday’s Sunday Standard had an article written by Prof. Anyang’ Nyong’o, Minister for Medical Services on why Kenya needs a science and technology driven economy to thrive. Coming at the back drop of Brazilian President Lula da Silva’s visit to Kenya, the article raises several points for why Brazil is a major emerging economy,  and which Prof. Nyong’o posits is due to the Brazilian government prioritising innovation as a major development concern. In turn he states that policies regarding technology as well as scientific societies need to be mainstreamed into Kenya’s national development.

However probably as a result of column space, a reader could maybe assume that making the public sector friendlier to technology change is all that is required. That ensuring adequate public resources are directed into science and technology will firmly put Kenya on the trajectory to become the middle income economy envisaged in Vision 2030. But that ignores the human aspect.

Brazil has placed emphasis on it's SME sector which accounts, just like Kenya for the majority of jobs and businesses in the economy. Indeed, according to an article on the Kaufman Institute for Entrepreneurship’s website titled Brazil’s Entrepreneurship Boom, the increase in new companies in Brazil has been linked with the country’s developing entrepreneurial culture and mindset. Each year this has been demonstrated by the number of participants in Global Entrepreneurship Week which increased from 1.5 million entrepreneurs in 2008 to 5.3 million in 2009.

And even though the country’s listing on the ease of doing business index has recorded similar challenges as Kenya in terms of high tax rates; as well as having structural impediments such as an education system that does not engender financial literacy, Brazil’s entrepreneurship development policy is strikingly different in that it focuses on promoting high-growth ventures as opposed to Kenya’s policy of just creating enterprises with the hopes that they will one day be able to create jobs.

This has meant that Brazil’s high impact intervention has brought about more immediate impacts on the economy, than the more laid back approach of just creating ventures with little regard for growth.

Similar to Kenya where according to the Ministry of Youth Affairs and Sports, there are 2.5 million unemployed youth and barely 125,000 are absorbed into the formal sector annually; young people in Brazil aged between 18 and 24 years account for 36% of the country’s unemployed. Nevertheless, lessons learned on Brazil’s focus on innovation as well as the promotion of an entrepreneurial spirit does give hope that indeed Kenya could just be on a positive path to Vision 2030, come the 2014 World Cup in Brazil.

Missing files and Tender Entrepreneur Brokers

“The abuse of entrusted power for private gain is always fine for the one person doing it, but it becomes catastrophic if everybody starts doing it.” - David Pitt-Watson

Last night on the news, Kenyans got to witness Dorothy Angote, the Permanent Secretary in the Ministry of Lands leading what was a day-long graft busting raid on junior officials in her Ministry. The Ministry which handles nearly five million title deeds, has been continuously been named as being one of the top most corrupt public institutions in the country. For her efforts, the PS unearthed thousands of files that had been stashed, some of which had been “missing” since the 1990s.

Kenyans have long become used to the phantom menace called “missing” files. The ghost appears out of nowhere just when one needs to undertake a transaction with the government.

Anyway, Dorothy Angote’s impromptu raid at least saved some Kenyans from the cartel of rogue officers at the Lands ministry as well as what we shall politely call brokers, agents or tender entrepreneurs.

However, Ms. Angote’s prescription to the problem falls short of expectation when she announced that there would be a reshuffle and disciplinary actions for the errant officers. If the Lands Ministry was a private business, for sure at least there would have been mass summary dismissals, if not court prosecutions. To send a clear message, the punishment must be clear.

Kenya has not been alone in handling rogue brokers that encourage public sector corruption. South Africa has also been dealing with such brokers who because of their close connections to the political elite, seem to be amassing great wealth to the detriment of hard working entrepreneurs.

Bobby Godsell the chairman of Business Leadership South Africa was recently mentioned in the media calling for South Africans to stand up to tender entrepreneurs who benefited from state contracts.

He likened this business practice to "a form of economic terrorism" that imposes “a cost on state services and conferring no benefit”.

This came in the wake of allegations that the country’s ruling party ANC’s youth leader Julius Malema's who the BBC recently described “28, a little overweight, impeccably dressed, and rather fond of referring to himself with the royal ‘we’” had irregularly personally benefited from lucrative government contracts. However, Mr. Malema has denied accusations of unearned wealth by saying that he is merely the victim of a political conspiracy and a racist plot.

Indeed Malema is just another example of South Africa’s “bling culture” which has for some compromised ethical business behaviour. Entrepreneurs have had to be linked to a politically connected personalities in order to effectively compete on the public sector market.

Closer to home, business cronyism in the tender sector has led to great resistance each time the government tries to institute measures that will even out the information asymmetry when it comes to public procurement. 

As we mentioned almost two years ago, the broker sector in Kenya has also become a culture where:

“You need a middle man to manoeuvre public processes. For instance, if one goes to the companies, lands or court registries, you have to more or less fight your way to the front of the queue. Brokers have taken precedence and because they have managed to become acquainted with the public officers, they tend to get their work done first … “

And it is this lack of transparent systems and promulgation of red-tape that have been a boon for the broker community. The cost imposed on not just entrepreneurs but every taxpayer in muddling through bureaucratic systems is what ensures that brokers shall always be in demand. After all, the opportunity cost of giving a broker a facilitation fee and lunch money to ensure that your application is submitted or your file is found, is much less than the cost of having to leave your business in order to chase up the matter yourself.

Then there is the issue of business competitiveness which has also had an impact on the need to fast-track (at whatever cost) government procedures. Bending the rules and paying the occasional bribe just to get a process fast tracked or even to be awarded a contract are common dilemmas faced by today’s entrepreneur. Moreover if one is doing it, then you can bet that others just to stay ahead of the competition will also do so.

It has now become recognised that an important catalyst to business growth is enabling entrepreneurs to compete on the public procurement market. And it is encouraging that young entrepreneurs are taking on the bottlenecks in the public sector, and developing new applications that equalize information asymmetries and promote transparency whilst combating public sector corruption. One such business is Tenders Unlimited, a new Kenyan business startup that provides databased access to tenders to business people.

Reducing the opportunity costs of red-tape frees up resources for more productive activities as well as spurring wider economic growth. Thus computerization of government documents should be implemented.

And finally to put rogue brokers out of business, procedures that require in-person attendance should be minimised. As seen by the influx of mobile phone money transfer systems onto the market, banks are now joining the fray and offering mobile payment systems that will eliminate the need for people to stand in long queues just to get their bank statements. Without ZAP and MPesa, chances are that the traditional banks would not have brought banking services closer to the people.

Now we are asking the government to bring it’s services closer to us taxpayers too.

 

Transcript of President Obama’s Video Message to the AGOA Forum in Nairobi

Hello everyone. I’m sorry I couldn’t be there with you in person. But please know that for me and for my family, the memories from our recent trip to Ghana are still fresh — we will always remember the warmth of the Ghanaian people and the promise of Africa’s potential.

I hope you’re enjoying Kenya — and the hospitality of the Kenyan people — as much as I always have. When I first came in 1987, it was to discover the story of my father, who had grown up herding goats in the tiny village of Alego. When I visited as a Senator, I promised to work for a U.S. foreign policy that gives hope and opportunity to the people of this great continent.

Today, it is my privilege to address you as President. And I want to repeat what I said three weeks ago in Accra. I do not see the countries and the peoples of Africa as a world apart. I see Africa as a fundamental part of our interconnected world. In our global economy, our economic fortunes are shared. And history shows that economic growth is among the greatest forces for progress in lifting people out of poverty.

That’s why the African Growth and Opportunity Act is so important. That’s why the AGOA Forum is so critical. By breaking down old barriers and opening new markets, we not only increase trade between our countries. We create powerful incentives for African entrepreneurs to grow their businesses, to create jobs and build a brighter tomorrow for their children. That is what AGOA is all about.

So I thank President Kibaki and Prime Minister Odinga for hosting this Forum. And I pledge to you the full support and partnership of the United States. That is why my Administration is represented there today by outstanding members of my Cabinet.

Over the last decade, AGOA has transformed the U.S.-African trade relationship. Opening America’s doors to your exports has been good for Africa — creating African jobs, bringing millions of dollars of investment to sub-Saharan Africa and sparking new trade across the continent. And it’s been good for America — with African exporters seeking U.S. expertise, investments and joint-ventures. And today, we’re your single largest trade partner.

At the same time, it’s clear that U.S.-African trade has yet to realize its full potential. And if the current recession teaches us anything, it’s that in a global economy not only the opportunities are shared. So are the risks. So there’s so much more we can do together to plant the seeds of our economic recovery, and to achieve lasting prosperity.

Only Africans can unlock Africa’s potential. It will take your entrepreneurship. Your innovation. And only Africans can ensure the good governance and strong institutions upon which development depends. Open markets alone are not enough. Development requires the rule of law, transparency, accountability, and an atmosphere that welcomes investment. And I encourage every country to set concrete goals for overcoming the obstacles to economic growth.

And to all Africans who are pursuing a future of hope and opportunity, know this: you have a partner and a friend in the United States. That’s why we’ll work with you to develop strong institutions, clear legal frameworks and the regulations and infrastructure that help bring new products to market. That’s why we’ll work together to harness Africa’s vast natural resources to generate clean, renewable energy for export. That’s why I’ve pledged substantial increases in our foreign assistance — not simply to help people scrape by, but to unleash transformational change. And that’s why we’ve joined with our international partners to promote food security by investing $20 billion in agricultural development — not simply to hand out American food, but to promote African self-sufficiency.

These are the things we can do together to unleash the skills and talents of our people. And to ensure our common prosperity in the 21st century. And if we do, I’m confident that Africans can live their dreams from Nairobi to Accra, from Lagos to Kigali, from Kinshasa to Cape Town.

Thank you for your work at this important Forum. Enjoy Nairobi.

Read more

Kenya’s Education System: A leaning tower of Babel

Today's top news story of the Daily Nation went by the title “students with lower grades to join varsity”. The good news was that public universities agreed to admit high school graduates with lower marks compared to last year.

Of course this will improve the lot of students who because of grades would not be able to enter university. However, though this should be a harbinger of hope for Kenya’s youth, several questions emerge on the real effects of such a move.

The unemployment rate amongst Kenya’s 35 million people is approximately 40%. It is estimated that 64% of these are the youth. Out of these, only 1.5% of unemployed youth have formal education beyond secondary school level and the remaining over 92% have no vocational or professional skills training, at all. But does allowing these extra youth the opportunity to go to university make a real impact in their chances of getting a job?

Even though universities are the cradle of research and innovation which could be perceived as a step in the right direction of nurturing future entrepreneurs, the education system before tertiary level does not adequately impart the innovative and resilience skills required of entrepreneurs.

Annually more than 240,000 post-primary students enter the labour force. Additionally 143,000 students graduate from high schools. The Kenyan education system in its current form does not equip these school leavers with skills to start business. Rather the curriculum is founded on rote learning rather than creativity and innovation, further stifling entrepreneurial development.

Even in the universities the calibre of the teaching staff raises questions. The Commission for Higher Education recently proposed reforms where the lowest qualified lecturer would be a tutorial fellow holding a Masters degree. The eminent scholar and noted historian Prof. Bethwell Ogot has been in the forefront as an opponent of this measure. He was recently quoted in the media decrying such a move saying "some teachers with a Masters are even allowed to teach Masters students".

And though these new regulations should be commended as a move to regulate the amphitheatre football stadium scenario many university students have to face and hoarse throated lecturers’ rue, at the end of the day it’s really not what is heard in a lecture but the quality of the content and transfer of knowledge that counts.

Kenyan education reforms have not only been the preserve of academia. Politicians whilst campaigning have promised “new education systems” that increase the capabilities and capacity of the youth to “effectively operate in the knowledge economy”. Even Vision 2030 - Kenya's development plan has lofty claims founded on the education system that will by then make Kenya if not a newly industrialised economy then a middle class one. However government commitment to education has been compromised with a new Education Bill that at least is expected to enforce laws that will keep children in schools, where the Ministry of Education has been less than proactive in ensuring it passes through parliament.

A question of merit versus the feel good factor

Meritocracy is a situation where opportunities are extended based on demonstrated talent, competence and ability, rather than wealth, family background, socio-economic class and other historical determinants of social position.

When extending a helping hand to enable those who just by a few points missed entry into university, thought must also be given to both those already in public universities who worked hard to make the grade as well as those still in secondary school. With no ultimate reward (a decent job with a decent wage assured at the end), the message to those students in our campuses as well as high schools is that hard work in school no longer pays. After all, another meeting of university dons can be convened to lower the entry grade further at a later date.

So what balance can be accommodated?

First, as the first crop of standard one pupils of the 2003 universal primary education policy edge closer to entering secondary school, the policy of free primary and subsidized secondary schooling needs a committed review, with the ultimate objective of providing quality education, whether for all or for a few has to be debated, as well as the subject of another post.

Kenyan policy makers also have to be honest with themselves and the People of Kenya about the increasing rate of unemployment particularly amongst the youth. The education system has to provide financial literacy, personal and business management training as core subjects. The time when a job was assured even in the civil service is over – at Yipe.org we have even heard of Masters degree holders digging trenches as part of the ill-thought Kazi Kwa Vijana programme.

To accommodate both the university graduates and lower level school leavers estimated at 800,000 annually, business reforms that specifically target micro-enterprise startups also need to be implemented.

Ultimately, education has to be held sacred. Kenyans need to take ownership of education and never allow it to be politicized ever again.