Most small businesses need Sh250,000 for virus recovery
The majority of micro, small and medium enterprises (MSMEs) require Sh250,000 in capital support to get back in shape with only eight percent needing more than Sh1 million shot in the arm, a new research indicates.
Forty two percent of firms that have suffered under the coronavirus-induced pandemic require between Sh50,000 and Sh100,000, while 17 percent of need between Sh101,000 and Sh250,000.
This means 59 percent of the firms surveyed need up to Sh250,000 to recover, the research carried out by Nairobi-based Viffa Consult shows.
Another 33 percent of the enterprises require between Sh251,000 and Sh1 million with the rest needing over Sh1 million, indicates the survey.
Most of the firms (58 percent) covered in the survey had sales of between Sh500,000 and Sh5 million, but the research also included firms (33 percent) with sales of between zero and Sh500,000. The rest of the companies ( nine percent) had sales that amounted to over Sh5 million a year.