Why do most businesses in Nairobi fail in less than 5 years?

Business
21

Quite sad. Sounds like it was malice?

22

Biashara pia Ni pata potea.

23

Your “smart people feasibility” is not really strategy, it’s basically have more money than the other guys…that’s the only way to stand out in business in Kenya… with more cash to spend on the business, it will be hard for others to catch up to you regardless of what you do…most fish in this pond are small…be the shark! Sharks win.

24

As much as what you are saying is true in theory, take a look at the annual top 100 SMEs list and you’ll see that most legit money in Kenya is made through services and supplies businesses. The same simple ideas that you deride from not being defensible People make money through initial connections giving them tenders in certain areas, then they execute brilliantly and build a name off of that initial connection. That’s how the likes of MoSound, Parapet, Craft Silicon and the likes are minting millions of dollars off of simple supplies and services businesses that any Tom, Dick and Harry can start within a month.

Let’s face it, Kenya just isn’t a fertile ground for innovative ideas. Innovation thrives in economies where basic needs are taken care of and there are disposable incomes everywhere willing to throw a few bucks to try out your fancy new idea. You can’t be innovating rockets in Kenya where most people are still living from hand to mouth.

25

Nairobi is the problem. The asking rents are at par with upper middle income nations.
This is where the municipal councils failed and county governments keep failing. Whenever business spaces are established, the county should match with 30 percent of the number of spaces. Given that most existing County government spaces go for like 15k, private renters would be forced to keep their rents low, lest they lose tenants to the county government.
Also it would diversify revenue for the county government instead of relying on parking and business licenses and allow county governments to make good use of their lands

26

A good practice in business is to assess and mitigate risk. Fire hazard is an insurable risk. Insurance cover could have helped him recover.

27

doesn’t this grow the economy?
seems like prices will be increased all along the value chain, so as to effectively offset the overheads
the wise exploit this to their advantage

28

Spot on…so he should blame himself for not doing risk assessment and identifying fire, theft as risks.

29

Any business that is easy to start and easy to exit in Kenya wachana nayo.

30

People are after money. Once they have money biz inaacha kuwa important tena, wanaingia kwa stage ingine ya kutafuta raha na mambo zengine

31

Something worth noting is that Kenyan economy doesn’t support production.Thus less jobs for the graduates and technicians.So sisi wote we venture into selling imported stuff and flood the market with same products and copy paste business ideas

32

Hao walikua masaitan

33

Sonko asome hii.

34

You have hit the nail on the head

35
  1. Pilferage
  2. Overtaxation
  3. Lack of consumer culture
  4. Extortion
  5. High overhead
  6. Copycats
    na kadhalika. Huku si kwa biz
36

:D:D:D:D:D tomba yeye kabisaa. This is actually common knowldge3

37

Tusker baridi double double

38

Appreciate it.Let us continue teaching each other the ways of the world.
Paybill on the way Kingoss.

39

Leta hapa