10 Reasons Why I Would Not Start any Business in Rural Kenya

You will find small businesses running in rural areas, and you will think to yourself, “If I had money and started a business here, would I not do well?” The answer to this question is relative.

But let’s face it. There are several challenges and stumbling blocks that these small businesses face in these areas.

Unknown to those of you admiring these small businesses, the owners of these small businesses face challenges that sometimes lead to closure.

Not to discourage you, but here are some of my top reasons why I would not start a business in rural Kenya if I had money to invest.

1. Market and Low-Income Levels

Every business needs money coming in to meet operational costs.

The low population and low income levels in rural areas decrease the market size and purchasing power of the people in rural Kenya.

This makes it hard for money to flow into the businesses quickly, meaning meeting overheads and wages might soon become difficult.

2. Transport and Logistics

Most rural areas lack the needed transport infrastructure, making moving goods and services a big problem.

Poor road networks slow goods delivery, which will be costly and logistically challenging in the long run.

Poor access to roads and long distances will hurt a business’s finances, and profits will be lower.

3. Human Resource

Recruiting talents, more so in businesses requiring technical skills, is a massive challenge in rural areas.

Most skilled individuals have flooded the urban market, and the response to a vacancy in a rural setting will almost always be low.

Failure to get the right skills might force the business to settle on anyone despite their interest, commitment, and passion, which could be detrimental to the business.

4. Networking and Support

Having a solid business connection and network is significant in helping a business address and mitigate challenges.

Rural areas have few entrepreneurs, and building networks is challenging.

This deprives business people of the opportunity to meet new colleagues and mentors who can train or support them with skills to navigate the bumpy roads of rural business

5. Limited Infrastructure

Rural areas need the basic infrastructure that can propel business success.

Most areas face poor electricity, road, and internet connectivity.

These infrastructures are crucial for business success, efficiency, and effectiveness.

6. Funding and Access to Finance

Despite the low cost of running a business in a rural setting, especially renting fees, it still needs funding for success and higher profits.

Funding is a huge challenge, as there are few credit and financial institutions in rural areas.

The available institutions have a lot of demands and conditions that entrepreneurs in rural settings can’t meet, hence making the financing process a very daunting experience

7. Connectivity

Lack of internet connectivity or slower internet speeds frustrates connectivity in rural areas.

Internet connectivity is crucial to improving efficiency and meeting the ever-demanding marketing needs of any business.

Connectivity also offers a platform for the business to foster innovation and create more opportunities for exploration, something that can’t be a reality in a rural setting.

8. Culture

Culture might pose a challenge to the success of a business.

Most rural settings in Kenya lack cultural and language diversity, making it hard to operate certain businesses.

This situation can be challenging since you must subscribe to specific values, ideals, attitudes, and behaviors to avoid misunderstandings.

9. Insecurity

Rural areas lack the needed security that can give you peace of mind if you put in a considerable investment.

Lack of access to security personnel, electricity, and good roads further exacerbates the problem, making it hard to put up huge investments.

10. New Taxes and Regulations

Introducing new laws that impose more taxes on entrepreneurs makes doing business in Kenya very expensive.

A business in a rural setting will worsen as its little profits might go back to the government.

Some laws are stringent and pose a significant threat to running businesses in rural Kenya.

Conclusion

In conclusion, it is essential to research and implement strategies that will help you navigate these challenges if you want to start and succeed in any business in a rural setting.