The importance of entrepreneurs to the socioeconomic well being of any country cannot be over emphasized. Entrepreneurs in a country are men and women who are business minded, risk takers, employment and wealth creators and who provide goods and services to the market to satisfy the basic needs and wants of the larger society. Without active, progressive, innovative and ever expanding class of entrepreneurs, any economy stands to shrink and  wither away. Even the national treasury will face severe budgetary constraints due to insufficient tax inflows.

Whereas in our case, the largest percentage of the ordinary tax revenue comes from large business companies such as Safaricom,
according to the Government's Economic Survey of 2010, it is the 2 million small and medium sized enterprises that employ the largest number of workforce. The sector employs 8.3 million people, contribute 18 percent of the Gross Domestic Product (GDP) and creates 590,000 jobs annually, though representing only about 10 percent of total exports. However, it is imperative to appreciate that the nation's technological progress and the rate of resource discovery-innovations depend on the supply of entrepreneurs.

The entrepreneur is the person who sees the opportunity for introducing a new technique or a new commodity, an improved organization or for the development of newly discovered resource. In our universities, research institutions and government departments are filled with reports and studies for innovations, inventions and Edisonian ideas that never see the light of day. For inventions or resource discoveries to be significant, someone with special talent for seeing their economic potential and bringing them into use must come along. That person is the entrepreneur.

Over the years, what has been recognized is that the supply of entrepreneurs, a factor of production, depends on the expected rate of profits, and what Douglass North of Washington University calls, " The institutional matrix to which organizations owe their existence."
North defines institutions as the rules of the game of society or more formally are the humanly devised constraints that structure human interaction. They are composed of both formal rules such as laws and informal constraints such as cultures.

Introduction of business education in our schools and occupational training for small business owners have been undertaken as one of the streams of  enhancing quality and fostering supply of the country's much needed entrepreneurs.Even though this efforts are laudable , they are not enough to make substantial difference. Our problems are deeper and wider. They are with our institutions, the social climate, which are the entrepreneurs understanding of the rules of the game; the conditions under which they must operate. From demand and taxation levels, security, corruption, licensing procedures, infrastructure, fidelity of employees and the whole lot of general public cultures, attitude and political environment.

In the light of our up coming county governance system, there is strong need to re-evaluate the workings of our formal and informal institutions with the aim of drastically improving the supply of the country's entrepreneurs as a whole and their competitiveness.
Matters that need urgent review to this end include formal regulations and laws as well as informal issues such as traditions and cultures of our communities in the respective counties and districts within counties that are impediments to business start ups and venture creation. That way we would boost both the quality and quantity of the nation's entrepreneurs.

Billow Khalid

No comments:

Post a Comment

Thank you for talking the time to share your thoughts.