Kenyans are running multiple businesses in a new strategy to avoid risks such as the disruption of income and livelihoods associated with relying on one source of income.
Micro and Small Enterprises (MSEs) Tracker Survey conducted by the Central Bank of Kenya in collaboration with the Kenya National Bureau of Statistics (KNBS) and Financial Sector Deepening Trust (FSD) Kenya, indicates that running several enterprises is key to diversifying livelihoods to manage risks associated with one business.
The survey results indicated that respondents operating one business declined from 87.3 percent in October 2022 to 80.9 percent in June 2023.
On the other hand, the proportion of respondents running more than one business increased from 12.7 percent in October 2022 to 19.1 percent in June 2023. The increase in the proportion of respondents running more than one business is notable among respondents in urban areas, owner operated businesses and male owned businesses.
The report presents topline findings from the second phase of the Micro and Small Enterprises (MSEs) Tracker Survey that was conducted in June 2023.
The Survey collected data on key characteristics of MSEs including operational status; number of workers; customer credit; business services and digital platforms; supply chains; revenue; financing; business perception; operational challenges; training and skills development; family and household dynamics as well as recent policy initiatives on credit access. Households with both active (operational) and closed businesses were interviewed.
According to its findings’, more male owned businesses were operational in June 2023 at 76.9 percent compared to female owned businesses at 69.7 percent. The proportion of operational businesses increased among the three age group categories in June 2023 compared to October 2022. Similarly, the proportion of operational urban based MSEs increased from 71.3 percent in October 2022 to 76.4 percent in June 2023. However, the proportion of operational rural based MSEs declined from 72.0 percent to 69.2 percent in the referenced period.
Majority of MSEs were in wholesale and retail trade sector. Most of the businesses have operated in the same sector with marginal increase in agriculture, manufacturing, wholesale and retail trade between October 2022 and June 2023.
On the other hand, MSEs engaged in transport and storage, accommodation & food service activities, and other activities declined.
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