Global recruiting firm Shortlist and Kenya’s Momentum Credit have explored on ways to facilitate local businesses harness the power of human resources in running and management of SMEs.
Most SMEs lack defined human resource departments due to constrains in finances which lead to them not fully getting the right people for their work.
Momentum Credit Ltd and Shortlist Professionals Ltd have co-convened a workshop to discuss the complementary role of human capital and working capital in transforming and growing businesses. The forum brought together SME owners and C-Level executives in finance and human resource management.
Shortlist is a Nairobi-based recruiting technology company that helps SMEs in Africa and India streamline the hiring process and build world-class teams while Momentum Credit provides structured working capital solutions to Individuals and Small Medium Enterprises (SMEs).
Small and medium enterprises (SMEs) play a significant role in strengthening the country’s economic progress. Despite the immense contribution in job creation and production of diverse products and services, the sector continues to grapple with challenges related to raising finance and establishing an effective workforce.
There is an underrated link on the strong influence of human capital and working capital on SME’s performance in the resilient business environment. Business owners face challenges in raising capital to support their ventures. The source of financing primarily revolves around personal savings, loans from family and friends and other informal sources as formal financial institutions have stringent measures locking out SMEs from accessing finance.
Job Muriuki, CEO at Momentum says, “We believe that great business ideas require convenient access to capital and an efficient workforce to thrive. A lot of focus has been placed on the challenges SMEs face while accessing finance. There is a need to shift the conversation from financial constrains encountered by such businesses to incorporate other critical elements that hinder them from attaining growth and profitability.”
SMEs often are more concerned about the growth and scale aspects as opposed to people and culture-related issues. Managing talent is a huge challenge especially in recruitment, employee training and development.
A company will only be able to provide exceptional products and services only when they have high-quality talent. Company owners and leaders must invest a lot of time and resources in workforce planning.
Ariane Fisher, Managing Director East Africa at Shortlist Professionals says, “Lack of a competent workforce will cost SMEs time, money and eventually affect overall business performance. As business owners evaluate different ways to raise capital, a lot of consideration should also place on workforce management.”
Working capital and human capital are the main levers SMEs have to gain transformative impact in their different sectors.