How female entrepreneurs can scale small businesses

How female entrepreneurs can scale small businesses (Photo: iStock)

Research shows that, of every ten start-ups in Kenya in a given year, at least 70 per cent collapse within that year. Professor Ng'ang'a Gachara explains how female entrepreneurs can avoid this pitfall.

How can female entrepreneurs assess whether their businesses are financially ready to scale?

A business is financially ready to scale when it has achieved organic growth for a period of at least 18 to 36 months. If revenues, after covering supplies, can also cover all operational costs, then the business is ready to scale its financing. However, it's important to consider market availability, supply chains, the cost of borrowing, and fiscal policy.