Figure 2-7 – Makueni County GCP Breakdown, 2017

Figure 2-7 – Makueni County GCP Breakdown, 2017

Source: Data from KNBS, Gross County Product Report (2019) The state of business in Wote Municipality

Seventy-four businesses, reflecting Wote’s main sectoral activities, were consulted through in-depth interviews. Many of these were small businesses or independent workers but large employers were also consulted, including financial institutions, hotels and healthcare facilities. The analysis below has been utilised to inform the understanding of the business environment, socio-economic inclusion, and key challenges and enablers.

Businesses in Wote include a variety of different sizes, however the production chain is limited, with little interaction between businesses upstream and downstream. Most businesses operate locally, especially in the retail, trade, agriculture and livestock sectors, selling their produce either within Wote Town or the surrounding Municipality. Some businesses, particularly in the services sector, operate outside the Municipality in Makueni County. Similarly, the majority of businesses use local suppliers for goods to enable their business to operate effectively, with a small proportion sourcing from further afield in Nairobi and Machakos.

Wote’s businesses primarily sell locally within the Town or Municipality. There are some businesses which sell nationally, although only a handful of agricultural businesses stated that they sell internationally. The majority of the businesses said that they tend to not deliver their goods, with customers instead expected to come to them if they wish to buy goods or use their service. This was especially the case for the retail and trade sector, as well as agriculture and livestock businesses. A significant majority identified transport as a major cost, especially businesses in the retail and trade sector. Most businesses identified word of mouth as the main method of marketing, with retail and agriculture businesses typically relying on referrals and/or walk-ins rather than paying for marketing.

A significant proportion of businesses indicated that they expect to expand and have a positive outlook for the future. However, several of the consultees who suggested that they intend to expand their business were reliant on interventions to address their main constraints to growth (see Table 2 2). There were occasional cases of self-employed workers expecting their business to decline or even close, citing the increasingly high cost of living and the personal financial implications of the COVID-19 pandemic. This issue has been exacerbated by the inability of small business owners to attain financial assistance, predominantly due to their lack of collateral. This challenge, as well as other identified constraints to growth, are explored further in Table 2 2.