Entrepreneurship Ecosystems and MSMEs in Kenya

Abstract

This report presents a diagnostic of MSMEs and entrepreneurship ecosystems in Kenya. The report is organized in four chapters combining a comprehensive set of information assessing the entrepreneurship ecosystems and MSME performance pre- and post-COVID-19. The assessment of the performance of MSMEs and entrepreneurship as well as the diagnostic of the availability of structural factors to support the ecosystem pre-COVID-19 in Kenya are not only critical to inform policy makers on the challenges burdening entrepreneurs and how the COVID-19 shock has led to additional constraints, but also to highlight potential opportunities that may emerge through the crisis. Chapter 1 examines the context of entrepreneurship and MSMEs in Kenya before the COVID-19 shock. It is based on a conceptual framework that covers indicators of key outcomes and structural pillars of the entrepreneurship ecosystem. Chapter 2 examines the potential and key challenges of entrepreneurship ecosystems at the sub-national level in Kenya. It presents the regional landscape of MSMEs and entrepreneurship in the context of the Kenya’s Economic Blocs, a recent institutional arrangement aiming to facilitate the collaboration across counties through common actions to support economic prosperity. Chapter 3 analyzes the characteristics of and the resources available through public programs and intermediary organizations (IOs) supporting entrepreneurship and MSMEs in Kenya. Chapter 4 examines the impact of COVID-19 on businesses and provides policy recommendations based on the findings of this report.

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