Businesses are crucial to the economy of a rising nation like Kenya.
The creation of jobs is a crucial way that entrepreneurs fill the gap created by the government.
More people have been encouraged to start their own businesses as a means of generating revenue because the government has not been successful in producing enough jobs to support the increasing youth population.
Unfortunately, not everyone knows where to invest, which is why it’s important to understand the worst kinds of businesses to launch in Kenya.
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A business can be deemed to be terrible for a variety of reasons.
The first of these is whether the business is profitable or not.
Other factors could be the funds needed, the hazards associated with running the business
Even while a business venture may occasionally be profitable for one person, that does not necessarily suggest that others should start their own.
Because the firm will certainly fail without it, a business idea should be compatible with a person’s passion.
Putting bad business ideas aside, anyone starting a business must perform a risk analysis and environmental scan to determine the business’ suitability and desirability. This will help you avoid getting into bad businesses like:
Politics-related blogging
Politics-related issues often involve high stakes, and political blogging is no exception.
In general, blogging may be a lucrative endeavour that has made a number of millionaires. Political blogging can be a successful company if you simply consider the profits, but there is much more to it than that.
Outside taxi service
The offline taxi industry used to turn a profit, but that was before internet cab services were available.
Even still, the corporations that provide the internet platforms receive the lion’s share of the revenue from online taxis.
You must spend a considerable number of money on a respectable car before you can launch this firm.
Due to high tax rates, purchasing a vehicle in Kenya is not inexpensive.
Travel company
Travel is done for a variety of reasons, including business, tourism, education, and health.
Given the strong demand for travel-related services, one may assume that a travel agency would be a successful enterprise.
The inconvenience for a travel agent is that they have to handle all of the client’s needs, including transportation to and from the airport, lodging, and security
secondhand clothes business
The tiny amount of capital needed is the main talking point for those considering starting this kind of business.
The good news, however, unfortunately ends there because the company faces numerous difficulties.
In order to acquire goods at the best prices, you must first be aware of the best locations.
Occasionally, when secondhand traders order merchandise, they receive inferior goods.
The government’s imposition of high tax rates to promote the purchase of locally produced clothing has also put this industry in doubt.
These companies are typically operated informally in markets where it is common for dealers to cross paths with officials.
The changing preferences in consumer behaviour are the final nail in the coffin.
Betting company
Despite the lucrative nature of the betting sector, starting a betting company is among the worst business ideas.
software firm
Although starting a software firm in Kenya may not be for everyone, technology is the future of doing business.
As in the instance of Safaricom’s MPesa, some software innovations have given rise to significant businesses.
However, these are exceptional circumstances, since many other concepts fail to materialize, frustrating innovators.
