Entrepreneurship in Kenya is growing at a rapid speed. Every day, more people are coming up with innovative business ideas. The country has a host of entrepreneurs who are eager to fulfill their dreams. However, most start-ups are faced with various challenges during their set up such as expensive office space, high electricity costs, and unreliable internet connectivity.
In addition to this, the education system does not impart graduates with the right skills and experience to succeed in business. Recently at a forum organized by Afrilab, participants were in agreement that start-ups in Kenya, have better chances of success if they work under incubator hubs. Incubators can assist enterprises in cushioning against the challenges faced by entrepreneurs.
What is an Incubator?
An incubator nurtures start-ups by providing the supportive environment they require to grow and develop their enterprises.
Basically, most offer the start-ups access to an official working space, with added features such as access to mentorships, training, business advice and funding. The aim of incubators is to increase the probability of the enterprise succeeding and reduce the cost of starting and growing its business.
The main aim of a business incubator is to increase the probability of the start-up to succeed by reducing the cost of setting-up and growing its business.
Benefits of Incubators to Entrepreneurs
When starting out, many Kenyan enterprises would grow even faster if they had access to some of the added amenities found in business incubators. This shall, in turn, enable them to concentrate on the development of their business.
Here are some of the benefits that potential entrepreneurs can receive from incubators:
- Access to a network
As a start-up, establishing the right network is crucial to the development of your business. Incubators have a wealth of networks formed after years of successful operations. Entrepreneurs can benefit from the networks immensely by participating in events, pairing up with mentors and getting to know other incubator members.
- Offers learning opportunities
This is one of the major benefits an entrepreneur can derive from a successful incubator. For a first timer, it is vital you attend an incubator with an open mind and a willingness to listen. Certain incubators offer sessions on business development, marketing and legal, public relations, human resource management, technological development and much more. Ensure you go to as many sessions as you can and apply the knowledge in your start-ups.
- Provide means of funding
This is the biggest challenge faced by many entrepreneurs in Kenya. Start-ups entering into existing sectors or creating new technologies will always need seed money to develop at certain stages of their business development. While some incubators invest directly in enterprises, most are capable of connecting you to VCs (Venture Capitalists), Business Angels or Private Equity partners.
- Access critical infrastructure at low cost
Some incubators provide research labs, office space, high-speed internet, cloud storage and other technology at a minimal cost. It is very beneficial when starting out to have access to affordable conducive work environments. They not only help you save costs but also give you the much-needed credibility your start-up requires.
What are Some of the Challenges of Joining Incubators
Despite their massive benefits, there are some challenges when joining an incubator that an entrepreneur must overcome. They include:
- Start-ups must ensure they protect their IP (Intellectual Property) from theft by other competing businesses sharing the same space.
- Start-ups should also keep their business grounded in reality, to make the transition from the incubator to the ‘real business world’ easier.
Where Can You Find Incubators
Here is a list of popular incubators that are revolutionizing Kenya’s entrepreneurship scene:
Most of the information on a prospective incubator is on their website, but if possible try and set up a meeting with the incubator manager. Inquire about the type of businesses they focus on. Some incubators concentrate on advanced manufacturing, others on Information Technology. If you are keen on entrepreneurship, why not give incubators a try? It may be the solution to your start-up needs.
Have you been to an incubator and what was your experience? Would you consider joining an incubator? Please comment below and let us know what you would do.
Learn More:
