Empowering youth and women entrepreneurs by addressing policy gaps

The growth and sustainability of enterprises play a crucial role in driving economic development and job creation. However, many businesses, particularly those led by women and youth, face numerous policy and structural barriers that limit their potential.

To address these challenges, SNV, through the Association of Startup and SMEs Enablers of Kenya (ASSEK), in collaboration with GIZ, convened stakeholder forums in Uasin Gishu, Kisumu, and Nakuru counties. The forums aimed to identify and assess the policy gaps hindering enterprise development and propose actionable solutions to support business sustainability.

The stakeholder forums were convened under the Investing in Young Businesses in Africa Support to Ecosystem Development (IYBA-SEED) programme. IYBA-SEED forms part of the third Building Block of the Team Europe Initiative, “Investing in Young Businesses in Africa," which supports entrepreneurial ecosystems and its actors, placing special emphasis on supporting women and young entrepreneurs.

In Kenya, IYBA-SEED programme partners work to strengthen the entrepreneurial ecosystem by mobilising key players, validating policy research, facilitating county-level public-private dialogues and multistakeholder platforms. These efforts encourage open and constructive discussions on regulatory and policy issues, contributing to a more supportive business environment for young enterprises.

The programme targets players in the entrepreneurial ecosystem, including incubators, accelerators, financial institutions, funders, public institutions, academia, and civil society that work with young and women entrepreneurs—specifically those involved in pre-seed and seed stage businesses. Key growth sector focus includes agriculture, green, circular and blue economies, digital services, infrastructure development, manufacturing, and financial services.

The forums aimed to function as inclusive platforms for identifying, assessing, and addressing the policy and structural barriers encountered by startups and Micro, Small and Medium-Sized Enterprises (MSMEs), particularly those led by women and youths. These gatherings convened county government officials, business support organisations, private sector players, and development partners to co-create solutions that cultivate a more enabling business environment.

A key objective was to validate the findings of policy and market opportunity research conducted under IYBA-SEED. Discussions centred on critical issues, including regulatory bottlenecks, market access constraints, financing gaps, and ecosystem coordination challenges.

The forums illuminated the unique challenges faced by women and youth entrepreneurs and sought to shape inclusive and responsive policy recommendations. The anticipated outcome is improved support structures, targeted policies, and a stronger ecosystem to bolster the growth of early-stage businesses across the three counties.

Each forum was designed to encourage active participation and co-creation. Each session commenced with presentations by SNV, offering an overview of the IYBA-SEED programme and contextual insights drawn from research on policy and market opportunities. This set the stage for in-depth breakout sessions and open-floor discussions, fostering collaboration among county officials, business enablers, financial institutions, development partners, and enterprises led by youths and women.

In Uasin Gishu, participants underscored the necessity for accessible financing, particularly for youths in agribusinesses, and expressed concerns over elevated licensing costs and inadequate infrastructure. Entrepreneurs advocated for streamlined regulatory processes and enhanced government support for the tech and manufacturing sectors, through incentives and mentorship.

In Kisumu, stakeholders highlighted regulatory complexities, limited digital access, and weak market linkages as significant hurdles. They strongly emphasised the need for more inclusive policymaking processes. As Vera Awiti of Sustainable Rural Initiative remarked, “We need to shift from forceful policy engagements to a more collaborative approach.” Others reiterated the importance of continued training and stakeholder inclusion to nurture a thriving entrepreneurial ecosystem.

In Nakuru, stakeholders highlighted concerns regarding the disconnect between youth skills and industry requirements, especially in sectors such as construction, manufacturing, and agri-processing. Despite the presence of Technical and Vocational Education and Trainings (TVETs) and training institutions, many young entrepreneurs lacked practical, demand-driven skills to compete effectively in the market. The forum also illuminated pressures from urbanisation, including informal settlements and rising youth unemployment, which further strain already limited infrastructure and public services.

The absence of coordinated enterprise support structures was a recurrent theme, with stakeholders noting that many business support organisations (BSOs) and youth programmes operate in isolation. The lack of a central “one-stop shop” for MSMEs, the participants emphasised, often results in duplication of services and confusion among entrepreneurs seeking assistance. There was a strong consensus on the necessity to map existing programmes, promote collaboration among service providers, and develop integrated support frameworks for MSME development.

The forums provided valuable insights and practical recommendations for strengthening the enabling environment for women- and youth-led enterprises. A major outcome was the validation of research findings highlighting policy gaps and the pitfalls of ecosystem fragmentation, which resonated with participants across the three counties. Stakeholders highlighted the urgent need for streamlined licensing procedures, targeted tax incentives, and more accessible financing, particularly for early-stage agribusinesses, tech startups, and ventures in the creative sector.

Throughout all counties, participants advocated for improved coordination among BSOs to reduce duplication and enhance service delivery. The concept of a centralised MSME support hub, where entrepreneurs could access information, mentorship, and funding, was widely supported.

Policy recommendations centred on promoting inclusive, youth- and gender-responsive policies to ensure grassroots entrepreneurs are actively involved in decision-making. Public-private partnerships were strongly endorsed, with many participants urging the establishment of more structured platforms for ongoing dialogue between the government, private sector, and development partners.

The forums also catalysed new partnerships, ignited interest in collaborative programming, and reinforced the determination of stakeholders to co-create context-specific solutions.