Solutions for Failing SMEs Facing Turbulent Economic Times

The COVID-9 pandemic has without a doubt had a crippling impact on businesses all around the world and Kenya has certainly not been spared. The plummeting economy coupled up with subsequent government restrictions that cut the operating hours for businesses especially in Nairobi left many city retailers without a source of income as they were forced into closure. Although the restrictions have since been lifted, many businesses continue to grapple through the gutters of the economic decline without a clear view for a way out. In the midst of all that, Notify Logistics has stepped up to come with solutions aimed at helping businesses overcome the storm created by the novel coronavirus. 

Established in 2018, Notify Logistics is a growth accelerator for businesses in the retail space and has pioneered the Buy-to-rent and Rent-a-shelf models which have become the Airbnb of the retail space. Notify Logistics has broken new ground by revolutionizing the business model of the retail space. The Buy-to-rent concept allows people who do not have businesses of their own to buy a shelf from Notify and Notify will rent it out to vendors who need an affordable space at KES1,000 per month.  

The shelves, which go for only KES20,000, become an income-generating asset that will give the owner a consistent and stable rent of KES1,000 per month for a maximum period of 3 years – the maximum lease period. Essentially, it is just like buying an apartment to rent it out and get a stable source of income from the rent collected like you would from an Airbnb. 

With the Rent-a-shelf model, Notify Logistics identifies shops in prime locations, partitions them into shelves, gets the proper documents for the shop to be operational and hires attendants for it. It then invites vendors to rent a shelf and run their business which is considerably cheaper in comparison to renting an entire shop. This model works best for people with online businesses but who want to create a physical footprint where their customers can visit and interact with their products. 

“Our goal at Notify Marketplace is to be a supporter of dreams by providing small businesses with all they need to grow,” says Mr Nderitu, CEO of Notify Logistics. 

“Small businesses employ about 60% of the total working population here in Kenya and we want to give these small businesses a path to success and profitability by ensuring that they have the infrastructure that in the past, only big manufacturers could afford. We provide for them a full suite of products to assist them move forward,” he adds. 

In the same vein of elevating the small business ecosystem in Kenya, Notify Logistics has taken on a larger role by launching an Entrepreneurs Program which is looking to reduce the cost of doing business for small businesses, therefore ensuring more entrepreneurial ventures come into existence and thrive in the retail sector. The program will reduce the cost of doing business for small businesses thereby ensuring more entrepreneurial ventures come into existence and thrive. 

“According to the Kenya Association of Manufacturers (KAMS), there are about 7.41 million MSMEs in Kenya, only 1.56 million are licensed whereas 5.85 million are unlicensed. This high number of unlicensed SMEs indicates that this is the right time to create room for SMEs to thrive and grow and Notify is ready to support these businesses,” Mr Nderitu points out. 

The KES45 million program seeks to provide: 

1. Affordable business space at an annual fee of KES20,000 in any Notify Mall for 1 Year fully serviced with shop attendants and licenses. 

2. This program will also ensure access to products from manufacturers has been made easier and efficient. 

3. The program will also help entrepreneurs acquire capital by connecting them to investors who are ready to invest in growing businesses. 

4. As a way to also motivate the entrepreneurs and mentor them, the program will incorporate a 10-week entrepreneurship training, this training will be moderated and led by successful entrepreneurs to inspire and empower new entrepreneurs and small business owners in Kenya. 

The entrepreneurs program adds to the catalogue of groundbreaking and innovative ideas that Notify Logistics has put forth to redefine the way of doing business in the retail space, and to cement the place of MSMEs and SMEs in Kenya while at the same time offering them a cushion to shield themselves during harsh economic times.