Why 'tribeless' youth are a vital catalyst to double-digit growth

 

If harnessed effectively, Kenya’s youthful population can launch a huge middle-income economy with a thriving populace, social and cultural cohesion. The youth, defined as persons under 30 years, make up 75 per cent of the population.

The Kenya Youth Survey Report of January 18, 2016 ?by Alex Awiti and Bruce Scott, confirms the faith that we all have about our generation (35 and over) being the last of Kenya’s tribalists. The youth define themselves first as Kenyans, second by their youthfulness, third by their religious affiliation or belief and lastly, by tribe.

Coming hot off the heels of a politically charged season where ‘tribal chiefs’ galvanised ‘their people’ into voting blocks, this is significant as it heralds a near future when ideology and shared valued will connect the populace to their elected leaders more than tribe. This could be the last volatile election Kenya will ever see as it will be hard to ‘rent a crowd’ to say meet you at the airport, demonstrate all day or attend weekday rallies.

The interviewed 1,854 respondents of ages 18 to 35 from across the country, including urban and rural areas, clearly expressed that they value family, faith and hard work.

They give evidence of being entrepreneurial: The majority would like to start their own business, rather than pursue careers in law, teaching, medicine or engineering. Few (11 per cent) want to become farmers, suggesting that the country’s urbanisation is likely to continue apace, intensifying demand and competition for off-farm employment.

Kenyan youth are largely positive and optimistic about the future and are confident that it will be more prosperous, offering more jobs and better access to health and education.

Against this background, a 30 per cent unemployment rate hardly seems daunting. I see unlimited opportunity. Liberation starts in the mind. The young people believe in their power to create own jobs.

Joblessness is a direct result of being reactive - waiting for someone else to create a job and hire you as opposed to venturing out, taking entrepreneurial risk and creating a job for oneself and others. The evidence of Kenya’s youth’s active and widespread interest in entrepreneurship allows Government the opportunity to harness their innovation and energy into an unstoppable economic force.

It is a simple numbers game, the more businesses started, the more that will succeed and the more that will thrive and create more jobs. As a seasoned entrepreneur that has created over 30,000 jobs in the last 20 years and currently in the process of walking away from a thriving enterprise that I founded and that currently employs over 1,000 people, it is clear to me exactly what needs to be done.

Challenges that youth face start with access to information that will answer questions on what is the latest opportunity that they can meet with limited resources and scale up later. The microwave culture of wanting to succeed immediately or to start at the top, coupled by the ‘me too’ style of doing the same old things can only be overcome by the allowing innovative, disruptive and sometimes crazy ideas have their day.

After an entrepreneur has identified the right match for their skills and passion, they then suffer from a deficiency in management and technical skills. The business owner has to multitask and often, the complexities overwhelm and the balls get dropped. This is where a helping hand from a seasoned mentor can guide and minimise mistakes and the resultant cash losses.

Assuming the start-up guru gets over this hurdle, the business grows and needs to scale – where will they access funds to accelerate their growth? What is the effective interest rate, or patient capital? Their access to finance may also be impeded by their poor record keeping and lack of separation of personal and business funds. Money is at the heart of every business and cash is king.

In the best-case scenario, the youthful entrepreneur thrives and has excess liquidity. Who guides them on investment options? Where to save and at what rates? How much to plough back or cash out? How to manage growth, expand scope or sell the business?

These puzzles demand a specialised resource and open-minded review of the internal and external factors that the business owner rarely possesses being too deeply invested in their ‘baby’.  A well-resourced private sector Enterprise Development Centre would ensure youth-led businesses thrive and command their rightful place in the global economy.

-The writer is founder and outgoing CEO of Professional Marketing Services. [email protected]