Sunday, May 26, 2024

Simple solutions for Kenyan businesses making losses, shutting down

Co-Op post

The business landscape in Kenya has taken a couple of hard knocks since the coronavirus pandemic.

Many businesses have been grappling with slim profit margins or losses, while others have been forced to close down without any hope of miraculous deity intervention.

The Kenyan economy has as well suffered in recent years. In 2023, the Nairobi Stock Exchange was ranked as the worst-performing market globally after experiencing steep losses.

Kenyans are naturally solution-oriented people, keen on looking for ways to reverse damages or evade impending risks they could face. From a business perspective, it would be prudent to first understand the challenges most enterprises are facing.

Economists and financial experts would attribute the tough business environment to the fluctuations of the Kenyan shilling value as well as a change in tax policies since the ruling regime took the helm.

Like a chain reaction, actions at the top can have a ripple effect down below. In recent years, we’ve seen the government implement strict policies for businesses, including mandatory new taxes.

As a result, many registered companies have closed down, leading to a wave of job losses and consequently a deteriorating economy. Most remaining companies have had to downsize their staff to survive in the tough economic conditions.

Turnaround

Recently, there’s been a glimmer of hope with the Kenyan shilling trading at lower levels compared to the US dollar last year. Trends indicate that the business environment might regain its competitive lustre again as the shilling becomes more attractive.

Will shilling continue to gain or lose against dollar? Equity’s James Mwangi speaks

Life has always been a symbiotic relationship from the grassroot levels of evolution. As iron sharpens iron, so one person sharpens another. This similar concept is also very applicable to business owners.

Many loss-making enterprises that shut down can attest that capital isn’t a key determinant but rather sound advice from seasoned business experts and fellow entrepreneurs. It is a prevalent phenomenon that cuts across various business niches.

Running a business is no walk in the park, and there’s no holy grail for success. It’s a tough journey, and finding the right strategy can be elusive. One effective way for entrepreneurs to navigate this complexity is through networking.

The business landscape is ever-evolving and needs continual adaptation and innovation. Some business owners have business strategies that they adhere to like sacred doctrines.

However, no man is an island. We all depend on each other for growth and success. Entrepreneurs need each other. This is why the rule of thumb for business is networking.

Networking is more than just connections; it’s about learning and gaining new ideas, as well as finding support during tough times. It expands your circle and exposes you to valuable advice and encouragement.

Solutions

Are you a business owner looking for avenues to expand your reach and grow your business through knowledge sharing and networking? Worry no more, Bizna Kenya has got you covered.

Bizna Club is launching new membership applications. Joining Bizna Club, needless to say, connects you with a community of successful entrepreneurs, including experienced professionals and corporate leaders.

Accessing business advice and a supportive community of entrepreneurs has never been easier in Kenya. You get the creme de la creme of business mentors who will always be at your beck and call to help manoeuvre through the storms of business.

At Bizna Club, we believe in the higher purpose of every member and their calling in business. Our vision is to ensure that all Kenyan entrepreneurs have improved lives hence our tagline ‘Better Business, Better Lives’.

Reasons why you should be a member at Bizna Club

By joining this community, running a business will stop feeling like a burden. With a roster of activities lined up, we always ensure entrepreneurs have a fun networking experience.

Events include meet & greets, business tours, and sporting and recreation activities. Of course, we ensure that priceless business tips and tricks are shared. You definitely won’t want to miss hearing them.

As Steve Jobs famously said, “You cannot connect the dots looking forward; you can only connect them looking backwards.” Bizna Club is a worthwhile future investment for any entrepreneur.

With abundant resources and support, you’ll be equipped to overcome any business challenge and align your dots for a successful future in entrepreneurship. If this is the right community for you, join us by filling the Bizna Club Registration Form.

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