Natural and uncontrollable disasters such as fires, theft and political violence can paralyse a business. FILE PHOTO | NMG
In the recent past Kenya’s economy has
been largely driven by small scale business that makes up a large
percentage of the country’s revenue.
In Kenya, SMEs
have played a key role in economic development and job creation. In
2014, it was notable that 80 per cent of jobs created during that period
were dominated by SMEs, which also contributed to 45 per cent of GDP.
Current
and past governments have become strong in supporting business
operations, especially those run by the youth, women and people living
with disabilities.
Private institutions in the
financial sector have also not lagged in supporting this agenda through
innovative products and services.
Entrepreneurs are firing on all cylinders to achieve big goals, but risks also lurk in the shadows.
According
to recent figures by the Kenya National Bureau of Statistics, close to
500,000 SMEs close shop annually with 2.2 million SMEs and MMEs having
closed shop in the last six years.
This shows a
worrying trend in the growth curve of small scale businesses that we
expect to be the country’s industrial and economic backbone in the
future.
Natural and uncontrollable disasters such as fires,
theft and political violence can paralyse a business, forcing it to
eventually shut down. Daily revenue is lost, property is damaged or
lost, pushing the business to a halt.
A Kenyan plastic
factory in the heart of Industrial Area was a victim to a similar
incident. The factory suffered damage and losses estimated at millions
of shillings in an unexpected fire in early 2014.
It’s
because of such incidents that all businesses must learn to pick
insurance and make well-calculated decisions to protect their assets
and property.
Insurance is one way of helping businesses to protect what they value the most: the assets.
Different insurance products that cover business from common flaks such as unexpected fires, theft of money and political violence among many more can be insured.
Monthly premiums that translate to a very small percentage of the business income helps the ownership to secure what they value, leaving a substantial amount for reinvestments and business operations.
Different insurance products that cover business from common flaks such as unexpected fires, theft of money and political violence among many more can be insured.
Monthly premiums that translate to a very small percentage of the business income helps the ownership to secure what they value, leaving a substantial amount for reinvestments and business operations.
READ: Firms to launch insurance product for low-income earners
With the uptake and adoption of this plan emerging and growing, businesses are sure to protect themselves from near potential risks that can affect their progress.
To ensure business continuity, companies will be able to cushion themselves against uncertainties in the market and the negative impacts that could lead to massive losses and closures.
With the uptake and adoption of this plan emerging and growing, businesses are sure to protect themselves from near potential risks that can affect their progress.
To ensure business continuity, companies will be able to cushion themselves against uncertainties in the market and the negative impacts that could lead to massive losses and closures.
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