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Kenya Innovation Week 2023, Commonwealth Edition: Start-up Manenos

 












The dates: 27th November-1st December 2023. The venue. The Edge Convention Centre, Nairobi, Kenya. Sweet things first. Innovators get to walk away with 500K each, in shillings. 47 of them, from all the 47 counties… on Jamhuri Day, 5 of them get to walk away with… that’s for the President H.E. William Ruto to announce. The funding is to enable them take their innovations to market and build viable businesses out of the same. PIA – The Presidential Innovation Awards, the president is that serious.

The Start-up sessions are a serious affair, the titles a mouthful, the colon abused: (Session: Founder Stories: An Exclusive Interview with Leading High Growth Start-ups: Learning, Pivoting and Critical Decisions during and Unprecedented Accelerated Business Growth). Ok, some of the lessons when scaling up: Ask for help; Believe in yourself; Resilience; Change of Mind-set.

What’s the share of Bill Gates in Microsoft? We are asked. We throw figures around: 30, 90, 50… the percentages… Less than 2%, the speaker says (will have to Bing that up)… anyway, the lesson being that: are you building something that’s bigger than yourself? Meaning that you’ll have to let go of your baby at some point. That you’ll have to put processes in place and trust people towards this. That is, by making your team understand the vision of where you want to go.

Alexander Odhiambo, co-founder and CEO of Solutech Limited, has an interesting take on start-up dynamism. Theirs has been steady but sure growth, retaining 99% of their clients (a KPI) before even thinking of outwards expansion by seeking even more clients. Moreover, they have built their business upwards by bootstrapping, rather than getting external funding… less stressful, that way… something for entrepreneurs to ponder about.

The moderator: Harry Hare, Founder CIO Africa. Other panellists: Ken Njoroge, Co-founder, Cellulant… Zena Msonde, Founder, HASHTECH… back to Alexander, he admits he used to get stressed when his competitors got heavy external funding… MarketForce, Twiga Foods… ‘What are people seeing that I am not seeing?’ The question. This as his friends – seeing things on his behalf – would tag him on this.

There is agreement in the ballroom that scaling is not easy at all and that one has to be careful every step they take. That one has to work on disrupting themselves before they are disrupted by the market… be on the move, thinking of that thing that will get you out of the market… Share your ideas with as many people as possible as not everyone is as passionate as you in bringing your idea to life (otherwise, if entrepreneurship was easy, everyone would be doing it… damn NDAs!). Again, Nike style… Just do it! Start!

Other pointers… trust yourself; trust your idea; trust God; trust the process… (cliché) it’s always impossible until someone does it… Again, a bit of luck comes to play… necessity being the mother of invention (and dreams, the father of innovation – my coinage; proper citation: ‘Dreams are the father of innovation’ – Sant Mark, 2023)… That Estonia, a country of 1.2 million souls, operating at -5°C (negative five degrees) most of the year, has 11 unicorns… Skype, Bolt, DX5…

Another Session: The Reality of the Effect of an Entrepreneurship Journey on Mental Health. The Moderator, Kendi Ashitiva, Co-founder, Niskize Counselling Company… she shares those memes, how others sleep, how an entrepreneur sleeps (… did I answer that email… I NEED FOOD… The Simpsons)… an entrepreneur’s day that is depressive-manic… such and such…

The panellists: Dr. Mandela Kibiriti, Chief Medical Officer, BYONB… Sam Gichuru, Founder and CEO, Kidato School (you probably know him at the Nailab… and his inspiring story where he ‘started life’ as part of an ‘exhauster’ crew – political promises, yesterday’s wheels on meals, honey sucker… the lingo)… June Odongo, CEO and Founder, Sengo Technologies… apologies first.

Apologies, first… Sam Gichuru gives us some context on entrepreneurs vis-a-vis mental health. You remember Kuna Foods? Probably, you were among the trolls that was KOT (then, now Kenyans on X) that made fun of the founder… how his was a stupid idea, that he couldn’t compete with chapo-dondo and the food-kiosk model where you could do ‘surua’… Kenyans can be brutal… Anyway, Sam has us do the maths. Of how the 1million dollars was used.

1million dollars = 150 million bob. The founder’s salary? Let’s cap it at 500k a month… in the one year of Kuna Foods existence that’s 12million bob. We remain with 138million bob… where did it go? To our brothers and cousins and neighbours… as boda-boda delivery guys, his staff, the petrol station ecosystem, the government… money circulating in the economy and creating jobs that he had brought into the country… nope, we kick him when he is lying flat on the ground.

Kuna Foods, it resonates with me… around the same time, a neighbour had an accident. A boda-boda rider… some of us visited him – the men, some didn’t . Some of the women, they said, he was haughty and ‘passed’ people without greeting them… my neighbour, she was among them. Let’s call her Mama Jayden… anyway, another replied, ‘This morning, Baba Jayden passed by me without greetings, as usual…’ Quickly shutting Mama Jayden – that when you point at someone, the other four fingers are pointing at you… Anyway, that was the nature of Baba Jayden, the silent type… you get the point.

Kuna Foods, on behalf of KOX, we are sorry and shame on us… we now know better. Gems shared during the session? Do things necessary for the business to grow (likened to eating glass) so that you can savour the things that made you get into business in the first place. Fundraising is really stressful. People talk when you get funding and when you fail, but not the in-between. That you have to learn to celebrate failure as this ups your chances of success.

Others… That the traits that bring one to entrepreneurship are the ones that predispose you to mental health issues (could be said of Creatives)… That, if you are to build a billion dollar company, you’ll have to solve a billion dollar problems… That you are not your company, hence don’t carry its successes and its failures… The clincher? That the markets, currently on the down, are opening up in 2024… time to position yourself. (All the money in the world is still there, it will circle back)

Session: Planning for and Executing a Successful Exit Strategy. The moderator, Stephen Gugu, Founder, Viktoria Venture. Panellists: Eston Kimani, Founder, Africa’s Talking, and ChatSasa; Caroline Wanjiku, CEO, Digital Village Africa… Eston has an apt metaphor about entrepreneurship… ‘Entrepreneurship is like going to war… you shed blood, sweat and tears. Even when you win, you are still wounded.’

Pointers from the discussion: Work on your mental resilience, for instance, run a marathon so that you learn to cut some slack for yourself… embrace failure and success… exit strategies include IPOs, mergers/acquisitions, leaving the business to the managers, estate succession… in all, always work with professionals (valuers, lawyers, etc… and cheap is expensive) while exiting.

More pointers: Give it an honest shot… some ideas will work, some will not… but we are working towards a better Africa. Work on yourself as an entrepreneur and on your business and find a balance. Join various programmes. Being a profit-focused business helps you have a sense of the right direction and super-focus on customers. Have a de-risking strategy by increasing your floor (de-risk yourself as we live in a world that’s very unpredictable). Be a bit more generous when giving out equity (the cleaning/tea lady got 300K USD!). Lastly, companies are bought, not sold!

A bit on pitching: What’s your impact? Which SDGs are you touching? Have you addressed the risks you see in your business? Where do you make the money (business model, ensuring the Lowest Common Denominator is not left out? That would be us, ‘kabambe’ phone users, with our USSDs, e.g., *254#... Do you have a convincing elevator pitch? What’s your go-to-market strategy? How do you protect your idea? What is your Customer Acquisition Cost? Lifetime Value of the customer? The take-home message from the celebrated industrialist who has supported young innovators over the years, Manu Chandaria, ‘Innovation is not a monopoly of any nation.’

 

NB: Meanwhile, I have a small ask:- I am running a campaign that will enable me launch my two books in February, end, 2024. I humbly ask of your donations of 20KES/20Kshs/20bob, towards this. The campaign is dubbed #20BobSanaa. Thanks in advance. You can also support by liking and sharing this content, or by buying these books using the following links:

‘A Funeral Dress for Nyasuguta’ available at: https://nuriakenya.com/product/a-funeral-dress-for-nyasuguta-by-mark-mwangi/

‘Love Told, Poetry Souled, Family Bold’ – available on Amazon Kindle at  http://shorturl.at/hzALY

Buy Good Till Number: 9080911, Gatere Mwangi
Send Money: 0708 276 622, Mark Gatere

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