Why do over 1000 SMEs in Kenya fail every day?

Why do over 1000 SMEs in Kenya fail every day?

By Soko Directory Team / Published April 20, 2022 | 1:35 p.m

IMPORTANT POINTS

Factors cited as the main contributors to the collapse of many SMEs include poor management, an inability to manage and account for funds, including bookkeeping and bookkeeping, and poor access to credit, among others.

48937807 – Wooden letter of SME with handwritten definition

THE CENTRAL THESIS

With TallyPrime, businesses can easily create VAT compliant invoices, easily submit VAT returns, save crucial time with pre-built ledgers and warehouse groups, avoid human error and suggest corrective actions.

The Kenyan economy thrives on small and medium-sized enterprises (SMEs). Statistics from Kenya National Statistics (KNBS) show that the SME sector employs at least 86 percent of Kenya’s population and contributes about 45.5 percent of the country’s gross domestic product.

But despite the importance of the sector to the economy, statistics show that at least 450,000 SMEs close in Kenya every year. That means at least 30,000 of them are shut down every month and at least 1,000 of them die every day.

Factors cited as the main contributors to the collapse of many SMEs include poor management, an inability to manage and account for funds, including bookkeeping and bookkeeping, and poor access to credit, among others.

TallyPrime was built with the premise of helping businesses manage and record their financial health. This is software that every business needs to navigate through all the financial and accounting turmoil.

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With TallyPrime, businesses can easily create VAT compliant invoices, easily submit VAT returns, save crucial time with pre-built ledgers and warehouse groups, avoid human error and suggest corrective actions.

For every business, data is king. A business that is unable to generate and manage easily accessible data is as good as dead. TallyPrime helps businesses securely access business data anytime, anywhere via a web browser.

In addition, the platform helps companies to get important business information with powerful and personalized business reports at the touch of a button. It also helps businesses automatically reconcile their ledgers with your bank statements.

“Keep track of your inventory with various reports such as inventory aging analysis, excellent stewardship, payment performance and more. With the new “go to” feature, you can switch from an invoice creation screen to any report and return to where you started – with no data loss or progress,” Tally Solutions said in a statement.

Sign up here to learn more about TallyPrime from an expert.

About the Soko Directory team

Soko Directory is a digital finance and market portal that tracks brands, listed companies on the NSE, SMEs and trendsetters in the markets ecosystem. You can find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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