By Esther Omosa and Remmy Naibei
Introduction
Women entrepreneurs present an opportunity to restructure the job market through self-employment. Promotion of this segment of businesses is critical in complementing the business sector, which is male-dominated. The promotion of women enterprises can be approached from key main perspective’s, including training, business opportunities and funding. Inadequate business training and limited access to essential management skills are key challenges that hinder the ability of women entrepreneurs to effectively run businesses and make informed decisions. Women own only 22.9 per cent of Micro, Small, and Medium Enterprises (MSMEs) as of 2021, while men dominate ownership with 77.1 per cent of around 7.4 million MSMEs.
To support women entrepreneurs, the government has implemented various initiatives, including the Women Enterprise Fund (WEF), Youth Enterprise Development Fund (YEDF), Access to Government Procurement Opportunities (AGPO), Uwezo Fund, and the National Government Affirmative Action Fund (NGAAF). These programmes aim to provide financial support, training, and capacity building to help women overcome business barriers.
This notwithstanding, promoting business development opportunities for women remains low due to limited coverage of the training opportunities, inaccessibility to financial opportunities, socio-cultural responsibilities, and limited mentorship platforms for women. This not only limits their potential for self-employment but also restricts their contribution to job creation.
Status of Skills Development among Women Entrepreneurs
Progress and support initiatives implemented
Formal business education
Women entrepreneurs with formal business education were approximately 26 per cent as of 2019, compared to 40 per cent among men entrepreneurs (Kenya National Bureau of Statistics – KNBS, 2019 Economic Survey). This presents a potential barrier to accessing essential training opportunities and resources. Management training was the most common training sponsored by religious organizations (44.5%), non-governmental organizations – NGOs (40.6%) and government (36.2%). This may be attributed to the importance accorded to management skills in the success of operating businesses. The Global Gender Gap Report (2023) ranks Kenya relatively high, with a score of 0.791, on economic participation and opportunity for women but managerial roles remain male-dominated in most sectors.
Support mechanisms
Government initiatives have supported women entrepreneurs to start or expand businesses through training, business opportunities and provision of low-interest loans. The Women Enterprise Fund (WEF) has disbursed Ksh 27.8 billion to women and trained over 1.72 million in entrepreneurship, financial management, and value addition since 2007. The Uwezo Fund has disbursed over Ksh 7.23 billion, benefiting 50,842 women groups. Loan amounts for women are expected to increase from Ksh 110.5 million in 2022/23 to Ksh 287.0 million in 2023/24. In addition to funding, women beneficiaries are trained on business and financial literacy, which is expected to improve business management and lead to higher profits and growth.
Business opportunities for women
The Government, under the Access to Government Procurement Opportunities (AGPO), has reserved 30 per cent of public procurement for women, youth, and persons with disabilities, providing ready market for women businesses. To support women take advantage of AGPO, banks have established financial facilities to enable the women to service their local purchase orders by accessing credit to deliver on the service to the government.
Challenges to Skills Development for Women Entrepreneurs
Limited coverage of training
The initiatives aimed at supporting women and improving their skills rarely reach women in rural areas due to limited physical presence and awareness campaigns, creating an imbalance with urban women who are more likely to benefit from these initiatives. Additionally, existing training programmes generally focus on entry-level business skills and basic financial literacy, but lack mentorship and advanced industry-tailored training. There is a need for ongoing mentorship and specialized knowledge in areas such as financial planning, scaling strategies, and advanced digital applications to thrive in a competitive business environment. While management training is crucial, the focus may overlook the need for more technical, industry-specific, and digital skills aligned with modern market demands. Training programmes often fail to address the diverse needs of women entrepreneurs, particularly those outside urban areas or in non-traditional industries.
Inadequate access to professional networks and mentorship opportunities
Despite the existence of mentorship programmes, many female entrepreneurs lack strong professional networks for mentorship. This limits women participation in various training programmes, which can improve their financial resources and information sharing. Interacting with mentors gives women entrepreneurs valuable insights, advise, and direction based on their personal experiences and expertise.
Opportunities for Job Creation
Leveraging digital platforms for business development: Training women on the use of digital tools for e-commerce, marketing, and operations can streamline their businesses and help them reach wider markets. This will support creating jobs in the value chains, including in logistics, customer service, and digital marketing.
Business training, networking, and mentorship platforms: Programmes such as the Academy for Women Entrepreneurs (AWE) provide practical skills for sustainable business growth. As more women seek formal business management skills, demand for trainers, advisors, and mentors will rise, creating job opportunities in capacity building.
Recommendations
Interventions towards empowering women entrepreneurs for self-employment and boosting job creation include:
- Subsidized business training programmes: The Ministry of Cooperatives and MSMEs along with development partners could offer flexible subsidized or free business training modules that accommodate various scheduled and tailor-made women business training programmes in manufacturing, construction and technology.
- Promote digital literacy and E-Commerce: The Ministry of ICT in collaboration with technology companies could provide training for women in digital marketing, e-commerce, and technology adoption to enhance their business operations and expand market access.
- Support of mentorship and networking platforms: TheMinistry of Trade and Industry could partner with business associations and chambers of commerce to create networking platforms and mentorship programmes specifically for women entrepreneurs. Support for mentorship and networking programmes through existing women’s groups would also help build stronger networks.
