Scaleups represent only 5 percent of Kenyan firms, but they have created 72 percent of new jobs in the past three years. As part of the series that included reports on scaleups and job creation in Jordan, Peru, Mexico, and Indonesia, Endeavor Insight has now published research on how scaleups are driving economic development in Kenya.
THE IMPACT OF SCALEUP FIRMS IN KENYA
This research was conducted in partnership with SAP. There are two additional important takeaways from the report.
1. Kenyan employers need to create over 3.9 million new jobs for young people by 2020. This figure may sound far-fetched at first, but it is justified by projected population growth (3.4 million additional people by 2020) and the size of current youth unemployment (approximately 580,000 young people unemployed today).
2. In order to grow and add more jobs, Kenyan scaleups need access to markets, talent, and funding (rather than small changes in the country’s regulatory framework or low taxes). These are the factors that a sample of over 1,000 entrepreneurs identified as key components that help companies grow. A summary of Endeavor Insight’s research on what entrepreneurs need most is also available here.
Contributed by Lili Torok.