Collaboration, Innovation & Economic Liberation. In Conversation with Kenyan Footwear Entrepreneur.
Zimbabwean philanthropist, billionaire and founder of global tech giant, Econet Global, Strive Masiyiwa, is of the view that “whether you’re a farmer, builder or engineer, the opportunities are equal. Just add a little innovation”. If innovation is a pre-requisite for entrepreneurship then Africans are taking heed of this advice, because according to the African Development Bank, the continent has the highest entrepreneurship rate in the world: 22% of those of working age have set up their own businesses[1]. We got talking to one youthful social entrepreneur in Nairobi, Ngugi James Karanu, who has recently started his entrepreneurship journey through his footwear brand, Nyayo Africa. Our conversation highlighted a few home truths: the need for an understanding of the local market, collaboration and financing, to enable more strategic, rather than impulsive, decision-making.
Don’t reinvent the wheel- modify it.
Understanding your target market is critical, as is knowing what is already out there and seeing how improvements can be made. Ngugi’s hand-painted footwear brand is vibrant, easy to wear and designed mainly for women and girls. Indeed, his very first customer was his mother, followed by a close friend, who is almost like a sister. He uses ngomas or slip-on shoes which he procures from one of the leading footwear brands in Kenya, Bata, and then customises the ngomas with hand-painted designs before delivering to customers via boda boda (motorcyclists).
A socially-conscious, African identity
For Ngugi, it is important to create a brand that celebrates the creativity of “African hands” and he envisions a company which has a value chain replete with African artisans and other workers, end to end, “to liberate Africans”, economically. Ngugi explains: “Nyayo means the soles of the feet or footsteps in Kiswahili. It is symbolic of what I am trying to do, making a path for myself hoping for someone to be able to follow my footsteps”. His vision is one which is increasingly being articulated by African entrepreneurs, across a range of sectors. For instance, Kenya’s Margaret Nyamumbo, CEO of Kahawa 1893, has become the first “black-owned, black-woman-owned coffee brand” to be sold across Trader Joe’s 200 stores in the US. She acknowledges that: “This is a monumental move forward, not only for us, not only for the women farmers in Africa, but all women and all of the black community,” given the significant contribution that women make to coffee production globally, sometimes accounting for 90% of the labour force in field work and 80% in harvesting[2].
Collaboration: creatives, administrators & business strategists
Ngugi is a 21 year old nursing student whose passion for art plus the fact that he “was sent home during the first wave of Covid-19, fuelled his decision to start a side business. He wanted “to express [himself] and saw it as a business opportunity” but he had “no prior experience in business and entrepreneurship” which has made things difficult. “I’m learning as I go along”, he shares candidly, and has therefore relied on the support of a close friend/mentor who has “been a pillar”. Indeed, having a great idea is one side of the equation, but for the idea to be translated commercially, there must be a sound understanding of the market appetite as well as strategic planning. The continent has one of the highest business discontinuance rates in the world[3]. High levels of informality in African economies – accounting for on average 70% of total employment[4]- means a gaping opportunity for skills development and training, which initiatives like the African Entrepreneur Collective are seeking to fill. Indeed, over the next two years, 3000 businesses in Kenya’s Garissa County will, through a partnership with the MasterCard Foundation, “benefit from advisory services and low-cost investments[5]”.
Start first, register later
Reportedly, data from Kenya’s Registrar of Companies (KRC) shows that between April and November last year, the number of businesses registered jumped by 58.5% to 65,782, as compared with 41,490 over the same period in 2019[6]. This leap shows the extent to which, despite, or perhaps because of, the pandemic, people are innovating and creating their own jobs. But for Ngugi, it’s the norm for entrepreneurs to start their businesses first, before registering, because dealing with bureaucracy “can be a tasking process” which can also be “quite expensive”, not with regards to registering a business name but rather in terms of having a physical space and putting in place the right internal processes. This reflects our findings from a continent-wide study on the relationship between social entrepreneurship and job creation: most social enterprises on the continent begin in the informal economy[7].
Side hustle, financial muscle
Reported figures from the KRC also shows that having a side hustle in Kenya is becoming the norm, particularly among 30-40 year olds, with a 42% increase in the number of new businesses registered between 2020 and 2021. When placed into a context of a loss of formal jobs among mid to senior level managers within this age bracket, we start to see what a picture of economic resilience in the face of the global pandemic has looked like. For Ngugi, he doesn’t fall into this age bracket yet he shares how “for most nurses, it is necessary to have business on the side”. His mother is a certified nursing aid and he knows of nurses who also work as artists for instance, because the nursing industry is “underpaid”. He is prepared to divide his time between nursing and his business, motivated by his mother’s advice of “hard-work” and “not giving up”.
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[1]https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/AEO_2017_Report_Full_English.pdf
[2]https://www.ico.org/documents/cy2017-18/icc-122-11e-gender-equality.pdf
[3]https://www.babson.edu/media/babson/site-assets/content-assets/about/academics/centres-and-institutes/blank-institute/global-research/global-entrepreneurship-monitor/reports/GEM-2012-Africa-Report.pdf
[4]https://thedocs.worldbank.org/en/doc/37511318c092e6fd4ca3c60f0af0bea3-0350012021/related/Informal-economy-Chapter-2.pdf
[5]https://allafrica.com/stories/202106160795.html
[6]https://www.businessdailyafrica.com/bd/economy/company-registrations-surge-on-covid-job-cuts-3253044
[7]https://www.britishcouncil.org/sites/default/files/social_enterprise_and_job_creation_in_sub-saharan_africa_final_singlepages.pdf