Entrepreneurs have been urged to avoid replicating business models that do not align with their enterprises to minimise the risk of failure.

According to estimates, only 20–30 per cent of start-ups in Kenya celebrate their 10th anniversary, partly due to poor product and service innovation.

“We need to stop the ‘me too’ syndrome – my friend opens a salon, and because I see it doing well, I also open one. Rather than copying what seems to be working, it’s crucial to consider one’s strengths,” said Joyce Ogundo, a lecturer at the Co-operative University of Kenya, during the sixth edition of the Nation Media Group SMEs Expo.

She urged founders to be original and to focus on areas where they can offer value, such as ICT, healthcare, and hospitality, to ensure sustainability.

“Although all types of start-ups contribute to economic development, those involved in value addition are particularly significant, as they are more likely to scale and generate sustainable value,” said Dr Ogundo, a former Secretary in the State Department for Trade.

“Many business owners mistakenly assume they know best what clients need, but this is not necessarily what clients want or are willing to pay for,” she added.

Emily Karechio, Managing Director of Top Level Management, emphasised the need for founders to empower their teams through upskilling and career development to attract the desired investment from funders. “Some start-up ideas require highly specialised talent to be successfully implemented, and at times, investors are forced to import skills such as coding or AI because they are limited locally,” she said. She stressed that investment in professional development is particularly crucial in this era of disruptive technologies and shifting consumer behaviour.

“Trust is a currency no business can afford to lose in an era of heightened scrutiny and accountability, where unethical practices can quickly lead to reputational damage or even cancellation,” Ms Karechio said.

Christine Mbaabu, Programme Manager at the Kenya Climate Innovation Centre, called on founders to be adaptable to change and view it as an opportunity for improvement, equipping their teams with the skills to navigate new situations effectively.

“Skills are essential for the growth and competitiveness of our SMEs. Skill-upgrading mechanisms should therefore be decentralised and demand-driven,” posed Mbaabu.

Dennis Tanui, Head of Litigation at Mahida and Maina Advocates, challenged founders to ensure they patent and trademark their innovations while calling on the government to address barriers to obtaining copyrights.

“If innovators release their products to the market before the patent is ready, they risk having their ideas duplicated. However, the process of obtaining intellectual property rights can take considerable time,” said Tanui.