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Entrepreneurship Myth In Kenya

Have you ever walked through different parts of Kenya and wondered how some of these tiny, almost hidden businesses survive? You pass by a cramped shop selling second-hand clothes, plastic buckets, hangers, and random jewelry. You pause for a second and ask yourself—who is actually buying all this? How is this business making money? Is it money laundering, or are these genuine businesses barely getting by in ways we don’t understand?

I ask myself these same questions all the time.

Earlier this year, I got an inside look. I was part of a project that involved collecting data on small businesses across Kenya—kiosks, market stalls, tailors, salons, fruit vendors, milk sellers, repair shops, cybers… all the businesses that make up the backbone of our economy. What I found was both eye-opening and brutally honest.

The Reality Behind the Business Dream

We love to romanticize entrepreneurship. Motivational speakers will tell you that employment is slavery and that starting your own business is the key to financial freedom. Social media makes it look easy—"just start, and money will flow."

But in Kenya—and many other developing countries—the reality is far from that dream.

Most businesses I visited made between KES 20,000 and KES 30,000 in profits per month. That might sound like a decent amount, but when you break it down, things become clearer:

  • Business expenses took up at least half of their profits.
  • Owners paid themselves from whatever was left, meaning they didn’t separate personal and business finances.
  • There was no emergency fund. If disaster struck, that was it.
  • Many businesses shut down in January after the festive season because owners had to sell all their stock to pay school fees. After that, they were back to square one—doing odd jobs to make money to restock.

This isn’t what business books tell you.

The Lies We Are Sold About Business in Kenya

We are constantly told that the key to success is:

  • Start a business.
  • Work hard.
  • Make money.

But here’s what they don’t say:

 Most Business Advice Isn’t Made for Us.

  • Price beats brand loyalty – People don’t care about how cool your business is. They buy what they can afford that day.
  • Scaling is a luxury – For most small businesses, it's about survival, not expansion.
  • Funding is a myth – The idea that banks and investors will support your small hustle? Forget it.

Ethical Business Practices? Good Luck.
Western business books assume a world where customers have disposable income. But in Kenya, the average person is barely surviving.

I’ve been a freelance language teacher for five years. I don’t have rent or stock expenses—just internet costs. And yet, I still struggle. Why? Because people will always try to negotiate lower prices, sometimes even making you feel guilty for charging what your service is worth.

Now, imagine running a business with rent, stock, and staff salaries.

Many business owners are forced to cut corners—some buy low-quality products, others underpay workers. Not because they want to, but because if they don’t, they won’t survive. But we also have a crisis of greed. Many Kenyan business owners believe that if they’re not making 100% profit, they’re failing. This mindset isn’t just unrealistic; it actively hurts the ability to run sustainable businesses.

All the business books and money advice flooding the market only make it worse—pushing the culture of quick profits over long-term stability.

How to Actually Survive in Business in Kenya

1. Start With Survival in Mind, Not Expansion

Many businesses fail because they focus too much on growth before they are stable. If you can barely cover your costs, scaling will only make things worse.

2. Keep Your Expenses Painfully Low

If you don’t need it, don’t spend on it.
✔ Share space if you can’t afford rent.
✔ Buy stock in smaller quantities to avoid waste.
✔ Learn to do basic tasks yourself (like simple bookkeeping or social media marketing).

3. Save KES 500 for an Emergency Fund—Yes, Just 500

Most businesses close because they have no backup. Start small.
✔ Lock your emergency savings in M-Shwari or Airtel Money where it’s less accessible for impulse withdrawals.
✔ Put something aside after every sale—even if it’s just KES 20.

4. Invest in a Medium-Range Phone for Digital Marketing

Your phone is your shopfront. Your business does not need a billboard, but it does need visibility.

✔ A decent second-hand smartphone (KES 6,000–12,000) can help you market your business on WhatsApp and Facebook.
✔ Learn basic photography—a good photo of your product can increase sales.
✔ Use free apps like Canva to make posters instead of paying someone.

5. Customer Service is Your Hidden Superpower

The number one reason many Kenyans avoid local businesses isn’t even high prices—it’s terrible customer service.

If I got a shilling for every time I walked into a shop, restaurant, or messaged a business online and got pure attitude, clueless staff, or straight-up robbery, I’d be a landowner by now.

It’s no wonder many Kenyans would rather struggle with international shipping than support local businesses. But why is good customer service such a struggle for small businesses? And more importantly, how can businesses fix this without spending a dime?

Final Thoughts

The truth is, entrepreneurship in Kenya isn’t a golden ticket to success. It’s tough. It’s unpredictable. And for many, it’s simply a means of survival.

So if you’re thinking of starting a business, go in with your eyes wide open. Don’t buy into the motivational nonsense that makes it look easy. Instead, plan for the worst, expect the struggles, and build for survival first.

Because here, in the real world, businesses don’t thrive on hope—they thrive on strategy, grit, and a whole lot of resilience.

But survival is possible. With a small emergency fund, digital marketing, and good customer service, a small business stands a chance. The key is understanding the Kenyan market and adapting to it—not blindly following Western business advice that doesn’t fit our reality.

  • Do Better or Go Broke
  • Respect people’s time
  • Deliver what you promised
  • Act like you care about your business

Labels:
Nairobi, Kenya Nairobi, Kenya

Comments

  1. Chef joelMarch 7, 2025 at 7:04 AM

    They say 'your boss will never pay you enough to be his neighbour' 😏 therefore early this year I wanted to start my own small eatery,,,wueee it's not easy,,,I went back to be employed,,it's not easy one needs strategy...

    ReplyDelete
    Replies
    1. KenyaOnAShoeStringMarch 7, 2025 at 8:28 AM

      I like that quote, will definitely borrow it. Starting a business is not easy, running one is equally challenging, but it is doable. Go back to the drawing board and re-strategize. Remember to always ask for help and modern barter trade is still alive and thriving.

      Delete

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