Putting Theory in to Practise

We've now been in Kenya for over four weeks working with our respective entrepreneurial groups and time seems to be flying by at an alarmingly quick rate. The main aim of the first couple of weeks with our groups was to introduce a few tools designed to help them be creative and innovative with their business and map out every aspect to help minimise risk. Moreover, a huge emphasis has been placed on extensively testing a chosen idea in the market because the best validation for any idea is someone actually paying for it. This highlights the importance of tools such as, the minimum viable product (MVP), where you take your product/service in its most basic form to the market and try to sell it. This allows you to see if demand for your product/service exists and meets any predictions you previously made. This carries much less risk than taking a completed product/service to the market only to potentially see it fail, costing you greatly in time and money.

We've shared these tools with our Kenyan groups because many Kenyan entrepreneurs carry huge amounts of risk and failing can mean they won’t be able to provide for their family or worse. However, I have begun to notice that in many cases the struggle isn't with sharing relevant knowledge, but with facilitating our groups to continue to refer to this knowledge after the initial lesson. Many individuals still regard market research as unnecessary because they “know” their idea will work so they don’t need to ask potential customers, they just think they need an investment to enable the creation of their idea. Sometimes it can be taxing to outline that simply talking to potential customers about what they want may be wiser than telling customers what you think they want. This need for continued support and facilitation highlights the need for plans to be constructed on how we (Balloon Kenya fellows) can potentially provide support for our groups once we return to our home countries. 

Continue Reading »

A Hopeful Vision

In a small alley behind the main street of Nakuru town, you’ll find a group of young budding traders selling clothes, shoes, printing services, fruit salad, and more. One can walk through this smoke-free passage without fear of being harassed by desperate or drunk hawkers, and customers are never under any pressure to purchase.

These disciplined traders are all part of the Hope & Vision co-operative, awarded ‘Best Managed Sacco in Nakuru’ in 2010, 2011 and 2012, and ‘Best Youth-Run Society in Kenya’ in 2012. Hope & Vision originally started as a funding merry-go-round, but has since grown to over 140 members. There are now plans to offer in-house insurance services and even open a micro-savings bank.

Hope & Vision does not discriminate on the type of businesses it allows to join, but the registration fee is 2,600KSh and members must contribute at least 1,500KSh per month. After a fixed period, members are able to apply for a loan to boost their Nakuru-based venture. There are 10 different loan products on offer with the highest repayment rate being 15%. In some cases, members can borrow up to two times their savings.

A group which has strong principles of friendship and mutual understanding, the Sacco does not demand securities or documents which other financial institutions do. Hope & Vision realise that micro-business owners require something different than what is currently on offer, and are adamant in their belief that businesses grow best when people work together.

With almost 7,000,000KSh (£50,500) lent to members and a 97% repayment rate, Hope & Vision really are an inspirational group of people transforming the micro-finance sector in Nakuru.



[As part of my project in Kenya, I am working directly with Hope & Vision to administer the 10% loans to my entrepreneurs who are successful]

Continue Reading »

The Kenyan Way of Life

The Kenyan way of life is an intriguing phenomenon to behold. I can’t emphasise enough the laid back manner of Kenyan life. If I arrange to meet a Kenyan at 1pm and they arrive at 2pm, they would see this as being on time and find it perfectly acceptable. It’s a little difficult to adapt to because in the UK if you arrange a meeting for 1pm  it isn't uncommon for all attendees of this meeting to arrive by 12:50pm. This cultural difference regarding time has affectionately become known as “Kenyan time or Mzungu time”- Mzungu being the Swahili word for foreigner/ white person. On more than one occasion our transport has been over one hour late and when questioned, offhandedly met with a reply of “don’t worry”. This breathes new life into the popular Swahili phrase of “hakuna matata”- no worries.

However, the instant any Kenyan steps foot into the driving seat of any transportation vehicle, this mantra is quickly forgotten. For example, the carefree, laid back Kenyan will happily leave for an appointment an hour after they are expected to be there. But the second they start driving, time becomes of the essence. Driving lanes are non-existent although I have it under good authority that all drivers are supposed to drive on the left, even if I haven’t witnessed it often. Cars over and undertake whether incoming cars approach them imminently or not. The mud paths to the side of the roads are commonly used unofficial lanes for dodging traffic from all directions, the speed limit is apparently dependent on the driver in question and their mood at the time and overtaking around a blind corner is common practise. This has resulted in the phrase “pole pole” (slowly, slowly) being ingrained in every Balloon Kenya fellows brain, rather than the seldom used “haraka haraka” (faster, faster). I am still yet to discover why time suddenly becomes so precious to Kenyan’s once they get in a car but one thing I am sure of is this cultural difference being as fascinating as it is terrifying. 

Continue Reading »

The Business Model Canvas

The Business Model Canvas (BMC) is the main tool we are using with our Kenya groups to help them map out their business and understand how they can create, deliver and capture value.

The BMC was created by Osterwalder & Pigneur and they propose that a business model can be described through nine basic building blocks that outline how a business intends to make money. The nine blocks cover the four main areas of a business: customers, offer, infrastructure & financial viability.

The BMC is encouraged as the most useful tool throughout our work with the Kenya entrepreneur groups because it is very simple to understand and use but also, highly effective by breaking down more complex aspects. Hope & Vision (a Kenyan business that Balloon Kenya works with to decide who should receive a loan after pitching) trust the BMC greatly and expect every individual pitching to make use of it.

For these reasons, all Balloon Kenya fellows have focussed heavily on the BMC and stressed the importance of group members mapping their business out in detail if they are to stand the best chance of receiving investment. 

Continue Reading »