The staying power of a business has always been attributed to its financing structure, its management, and the kind of assistance it might receive. This means that one of the basic requirements for the SMEs to grow, develop and sustain themselves is adequate financing which can enable them to develop more robust products or services.
Access to finance however continues to be a key constraint to SME growth. It is the second most cited obstacle facing SME to grow their businesses in emerging markets and developing countries.
Now that over 600 million jobs are needed by 2030 to absorb the global workforce. Governments around the world should prioritize SME access to finance, and find innovative solutions to unlock sources of capital.
Kenya Climate Ventures, (KCV) is a key player in this SME sector. Supporting innovative, disruptive, and sustainable business models that provide climate-smart solutions, we have managed to reach out to startups like Mace foods, ofgen, hydroponics Africa, Sistema bio, Exotic epz ltd, Kilifi moringa and offered our investment and advisory services. We have increased their businesses access to financial services by providing equity investment.
Our main objective as an organization is to support innovation which is one area where SMEs often excel and support their growth to boost employment opportunities.
With the current ongoing crisis, SMEs need support more than never before. The impact of covid-19 on SME financing can be felt already; the sudden drop in revenues created acute liquidity shortages hindering SMEs access to finance.
The World Bank Kenya recently projected that Kenya’s gross domestic project will continue falling due to the negative impacts of covid-19, stating that there is the urgent need to support the country’s small and medium enterprises group.
The demand for business loans and financing continue to rise particularly for SMEs who are now severely affected, and regardless of SMEs playing a major role in most economies, particularly developing countries, they will still need support to accelerate their businesses, and access to finance is the only way.
Kenya Climate Ventures will continue investing and supporting SMEs whose businesses continue to have a positive impact on target markets and communities in Kenya, and accelerate the development of climate-smart solutions.