The third most unfriendly factor that is expected to feature a lot in 2013 is security. During the recent closing months of 2012, the country experienced disturbances in a few regions in the country. No entrepreneur would be willing to intentionally devote or block his capital in an area that is faced with disturbances. People have seen elections before and they are apprehensive about the possibility of disturbances. All the business people will sit out the better part of the year to see how events play themselves out. This will cost the economy a lot in reduced output from businesses and in essence reduce the revenue collection for KRA. Reduced tax collection will mean a tighter budget for the economy especially for development, and this will go a long way in straining the business people who will be faced with recurrent challenges of under-developed infrastructure and and other hindrances.
While it may entirely look to be a dull 2013 for SMEs, there are a couple of things that will make the year a shining one. On the brighter side, this will be a year where there will be a devolved government, and thus more capital for dedication to counties which would be used for the growth of county-based economies. This kind of growth will definitely be SME focused, providing boundless opportunities for start-ups to get on their feet, and kill the ghost of unemployment.
The article discusses about the some of the policies which have made it difficult for the SME sector to realize its projected full potential. Kenya has three major cities and a number of other major towns that have seen small businesses thrive to become mid-sized entities. This year, being an election year, will provide yet another challenge for the business community. We have seen that Kenya, during every election year, develops a heightened and tense climate due to the political scenario and the media, who create a frenzy and push businesses into a recession.
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