Information based business development services in Kenya

Abstract

This document is a benchmark survey report ofthe DFID-BASE funded project~ that focus on MSEs in Kenya. DIFD-BASE has been supporting financial ane business development services projects inKenya as well as the deregulation uni ofthe Ministry ofPlanning and National Development (MPND). Our focus is or the Business Development Services-Information Based Projects, whose focus i~ on training, counselling, information documentation and dissemination, sigr posting and linkages, and marketing and financial management services. The survey, on which this report is based, was undertaken between late 1997 am early 1998 following an understanding between DFID-BASE and IDS-University of Nairobi's REME Project. The purpose of the survey was to compile profile: of the recipient projects as well as those of their beneficiaries. This data would be useful in future for assessing the impact of the projects in question in relation to the overall goal of DFID support to the MSE sector in Kenya, i.e. increasing income and employment for rural households through supporting off-fam activities, especially among women. Interview guides, questionnaires, observations and checklists were used to collect the relevant data. Descriptive statistics such as frequencies and percentage: were used to analyze and interpret the data collected. It was found that information based interventions were being implemented b; differing organizations, some of which had well established structures an< systems, while others were still nascent. The foci of these organizations lay in the area of BDS for MSE sector and they were at! quite selective in the sociol demographic, economic and entrepreneurial features oftheir target. The gender balancing principle appears to be a significant driving force behind project design and implementation. This was in recognition of the DFID-BASE emphasis 01 poverty alleviation, especially among women. Generally, the organizations/projects studied targeted both individuals and institutions. The targeted beneficiaries were mainly middle-aged, fairly educated and vocationally trained entrepreneurs earning low incomes and only beginning to move out ofon-farm activities. Some ofthe individuals did not have enterprises, but they were management staff of key institutions serving the MSE sector. Indeed there was still strong attachment to land and livestock ownership. Most of the beneficiaries had received. more than one BDS-information service for the 12 year period during which they were members and were pleased with the services as implied in their recommendations for intensified assistance. Indeed few beneficiaries had other sources of assistance. In terms of the usefulness of the data for future impact assessment, it is clear that the beneficiary activities and interaction with the respective projects will be bound to affect them as individuals (personal growth), their enterprises (assets, income), their households (general welfare) and the wider communities in which they operate. We thus recommend that the data on impact assessment focus on these four levels and that the key variables of income, employment and assets as well as the qualitative aspects of well-being be clearly investigated during the impact study.