I’ll be sharing some PRACTICAL tips on Entrepreneurship for the next Three days starting today and I’ll start with the most basic. In fact, today, we’ll just handle why we must prefer Entrepreneurship for personal and Macro Economic growth.
Many of us Young Kenyans have many aspirations. We all aspire to own a house in the City, to drive a good car and to afford many things that would make our lives comfortable. The point is, many of these things depend entirely on what our pockets have.
Figure out this – To drive a used Prado Tx, a used Mercedes or a used Range Rover, It would cost upwards of Ksh. 3Million. If you currently have a Job paying a net of Ksh 100,000, you’re likely to save around Ksh 40,000 assuming you’re a good “saver” and a “Kikuyu” (with a light note)… This means a saving of Ksh 480,000 per year ceteris paribus and Ksh 4.8 Million in ten years. Factoring in time value for money, it will therefore take you 10 years to drive a used Prado.
Point is, in those 10 years, you’ll likely also need to own a house and take care of other responsibilities. To own a house in a middle class residential estate in Nairobi, It’d cost you around Ksh 12 Million at the moment. Using the above math, you need to save Ksh 40,000 for over 30 years after factoring in time value for money and keeping other factors constant.
In the same breath, how long would it take a businessman to make a profit of Ksh 15 Million and own that used Prado and that middle class house??
The choice remains yours but Kenya will grow the “Singapore” way only if we embrace entrepreneurship. We must become employers for Kenya to thrive. Never worry where we’ll get employees if/when all of us venture into business. Ask yourself whether there’re enough workers in Singapore or Dubai. Let’s venture out, let’s do our part, let’s be practical and let’s take those small first steps.