The Evolution of Entrepreneurship in Kenya

Interest in the development of entrepreneurship and small enterprise in Kenya gained momentum as a possible remedy to the stagnation of economic development and the escalating unemployment problem between the early 1960 and 1970s

Although there were attempts by the government to develop entrepreneurship, the main impetus came form the international labour organization (ILO) report. The report centered on the potential of the informal sector and suggested that the
bulk of Kenya’s urban workers were self –employed in small enterprises.

The report proposed that the development of this sector could;

  • promote employment
  • facilitate development
  • facilitate equitable distribution of resources.

Based on this report the government responded with a seasonal paper in 1973 – which recognized the role of entrepreneurship in employment creation not just in the formal sector but also in the formal sector.

Subsequent development plans have devoted time to the development of strategies and to promote small-scale enterprises and entrepreneurs which include.

  • The industrial estate programme
  • Establishment of development agents e.g ICDC and KIE
  • Policy and institutional framework to promote entrepreneurs.
  • Promoting indigenous Kenyan enterprises.
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