According to Kenya’s development programme Vision 2030, one out of every three household businesses is led by a young adult. With only 7 percent of all high school graduates finding formal employment, small household businesses are a natural choice for young people entering the job market. Still, up to 70 percent of these businesses go bankrupt annually due to their lack of entrepreneurial skills – such as financial management, marketing and planning. The same deficiency prevents young entrepreneurs from accessing capital from demanding lenders.
The problem is deeply rooted in the educational system, which focuses primarily on rote learning instead of practical skills. This problem, however, is not limited to Kenya – many OECD countries are facing the same challenge. Kenya’s unemployment rate stands at around 40 percent and since formal employment in Kenya is diminishing, the impact of small businesses on the country’s economy takes on greater significance. Therefore, ensuring that entrepreneurs stay in business is key to securing economic growth. So how can students gain the experience and skills necessary to lead their businesses effectively and sustainably?
