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"content": "lot of jobs and wealth creation, but we do not appear to have a legal framework within which they can operate. This Bill seeks to establish a legal framework within which the micro and small enterprises will operate. We seek to establish an authority which will get them access to the market, get them information and access to credit. We are aware that the statistics show that, for instance, in 2012, they were able to create up to 80 per cent of our jobs. They contributed 18 per cent to 20 per cent of the country’s Gross National Product (GNP). Further, the Kenya Economic Survey established that the 503 jobs created in the year 2010, 440 were in the small and medium enterprises. Mr. Temporary Deputy Speaker, Sir, generally in the developing countries, more than 90 per cent of all firms outside the agricultural sector are medium and small enterprises. Significant portion of GNP, for example in Morocco is 93 per cent, industrial firms are RMCs and account for 38 per cent of production, 33 per cent of investment, 30 per cent of exports and 46 per cent of employment. In Bangladesh, enterprises of less than 100 employees account for 99 per cent of firms and 58 per cent of employment. Similarly, in Ecuador, 99 per cent of all private companies have less than 50 employees and account for 55 per cent of employment. In Kenya, the medium and small enterprises sector make up well over 90 per cent of trading companies. This sector has experienced great challenges in terms of growth and development. As I said earlier, it lacks the legal policy framework in terms of its organization and regulation. Further, it has disjointed support, interventions in terms of policy, advocacy, capacity building and resource mobilization, amongst others. Mr. Temporary Deputy Speaker, Sir, this sector carries and caters for the majority of our people and major contribution sector to our economy. Small and Medium Enterprises (SMEs) utilize local resources using simple and affordable technology and also tend to show greater resilience in the face of recession by holding onto their businesses. Many times we talk about the Kenyan economy being resilient, that can only be attributed or ascribed to the performance of our SME sector. Considering the contributions made by this sector, it follows therefore, that there is need to find ways of filling the gaps to facilitate organization and regulation. Members of this sector need to be supported to improve accessibility to business development services in the sector such as access to financial services and infrastructure. It hurts when you see producers, job and wealth creators without appropriate places of work. They need to be allowed to get access to infrastructure, research and development. Mr. Temporary Deputy Speaker, Sir, the journey towards SMEs began from the Special Paper No.1 of 1992 on Small Enterprise and Jua Kali Development in Kenya. The National and Micro-Enterprise Baseline Survey of 1999 further refined and attempted interventions in the sector. Further, there was Sessional Paper No.2 of 2005 on Development of Micro and Small Enterprises for Wealth and Employment Creation for Poverty Reduction. That ultimately was followed by the Micro and Small Enterprises Bill of 2011, which is the subject of today’s debate in this House. This Bill establishes legal and institutional framework by first providing an enabling business environment, facilitating access to business development services, facilitating formalization and upgrading of informal SMEs and providing an entrepreneurial culture of promoting representation of SMEs associations."
}