The Ready Business Index Report, commissioned by Safaricom Business, shows that 54 out of every 100 Small and Medium Enterprises (SMEs) in Kenya have integrated technology in their businesses.
“Kenya’s economy data shows SMEs make up 99% of businesses in Kenya, employing 75% of the total labour force, yet contribute only 18% to our Gross Domestic Product,” said Rita Okuthe, Director, Safaricom Business.
The Ready Business platform has been developed to help these businesses determine whether they are fully taking advantage of technology in their processes and understand how they can improve their productivity through technology.
A test was carried out on 1, 200 firms to supplement the survey of 181, 000 businesses across 21 of the country’s 47 counties.
Majority of the respondents operate in the services, IT and communication, wholesale and retail, transport and logistics and hospitality sectors, with small enterprises with less than five employees representing 72 per cent of those surveyed.
Firms in import and export; and IT and communications lead in the adoption of technology, followed by those in the wholesale and retail, hospitality and agribusiness sectors.
46 per cent of Kenyan businesses, most in hospitality, energy and retail, use cashless payment solutions; 43 per cent have adoptedorganizational email, similarly across many sectors; and 37 per cent of respondents have a web presence, most in the financial, IT and communication, and service industries.
The Ready Business Index Report says that with full integration of technology in their operations, SMEs will open themselves up to opportunities that include diversification of revenue streams; low-priced and scalable business solutions; access to adequate skills and technology; and better access to customers and information.
“Businesses become more efficient and create more opportunities by plugging revenue leakages, increasing revenue opportunities through online presence or by providing better insight by way of data relating to their customers,” Okuthe added.
Source: Footprint to Africa