Funding will be the top worry for Small and Medium Enterprises (SMEs) in Kenya for the next three to six months. This is according to a survey done in March and April by Wylde International, a strategy and advisory to entrepreneurship development company.
The survey was sought to determine the impact of Covid- 19 on Kenyan SMEs on business turnover. It also sought to establish SMEs performance in March and April and the effects and challenges of the pandemic.
Other frameworks of the mobile- based survey included priority of SMEs staff and business performance , funding versus non- funding needs and government initiatives and impact.
According to the survey, Kenyan SMEs suffered a huge blow in the first quarter of the year due to factors such as floods and invasion of locusts. Covid- 19 pandemic worsened the situation because it saw the economy being shut down to combat the rapid spread of the virus.
Cash flow was noted to be SMEs greatest problems, followed by disrupted sales. 26% of SMEs predicted they will have a hard time in paying salaries due to the flactuating profits. 19% expected revenue losses while another 19% anticipated defaulting on their bank loans in the next six months.
The report also suggests SMEs should invest in short term strategies for survival during the tough times and urged them to deal with matters HR with humanity.