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.

A good story sells

A recently published blog post by David Roodman titled “Kiva is not quite what it seems” has been causing quite a stir in cyber space. Not so much because of the provocative title mentioning Kiva - a pioneer and probably the best known Person to Person (P2P) micro-credit organisation; Roodman’s post also questions the real intentions why people choose to fund a micro entrepreneur from Cambodia, Kenya or Guatemala for that matter.

Roodman posits that a reason for the success of Kiva and similar internet based lending portals is because for as little as US$ 25, more people can become benefactors. Helping others has become a cheap commodity and not only the super-rich Bill Gates and Warren Buffett’s can now claim the title “philanthropist”.

Similar to the P2P lending model, goods from developing countries that sell on western supermarket shelves bear stories – some of them wild. This has been largely propagated by fair trade products. However, nowadays even a pesticide sprayed beetroot from Bulawayo must carry a story. A honey product from Kenya cannot just simply be labelled “Kenyan honey”. What’s required is a long tale weaving in a tapestry of sensory words probably going along the lines of “…this honey comes from the honey bee whose hives are in Africa’s savannah plains ... The scents from the eucalyptus ensure a wild …”.

Indeed, the more evocative the story about the terrain or about how poor the farmers who produced it are, the better.

This is what consumers want – a feeling that when they put a spoon of honey in their morning tea, they feel part of that savannah so alluringly described on the product label. And it is these stories that add a couple of dollars or Euro’s onto the unit retail price. On some e-commerce websites selling African “ethnic” products, 2 kgs of maize flour which is the staple food for most East and Central African countries goes for US$ 10. The same product in an upmarket supermarket in Nairobi costs less than a quarter of that price. The point is that with good marketing, consumers pay more for the “story” than the product itself.

With rampant corruption constantly being reported in Africa, an ennui among citizens of western nations has emerged. Commonly people question why donor aid is poured into large infrastructure projects such as roads and geothermal plants yet there are numerous instances of money being siphoned off by corrupt public officials in Africa. Just last week it emerged that World Bank money earmarked for free primary education in Kenya had been stolen; thus begging the question why fund such a project when if you gave an entrepreneur a bit of money they could then be empowered enough to send their children to a fee paying school?

Media stories on Africa which in most instances focus on crises’ or the potential for crisis have made people who would otherwise dip into their pockets to alleviate hunger on the Continent averse. Thus when one sees a picture of Mary from a village just outside Kampala who has a banana kiosk, the need to assist Mary overrides the need to assist Fatma in a refugee camp in Eastern Congo.

In an age where people are sponsoring small businesses’, children and even guerrillas in Rwanda, what does this all mean for entrepreneurs either seeking funding or wanting to sell their products on the export market?

In a nutshell there is a palpable and growing demand for “virtual tourism” – a state where one can experience a lifestyle from the comfort of their seat in front of a computer monitor, or perhaps when they hold the honey jar from somewhere in Africa, gently open the lid, and smell the scent of the wild.

Read “Kiva is not quite what it seems” here