Digital economy blueprint



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Kenya-Digital-Economy-2019

CHAPTER 6.0

 

INNOVATION-DRIVEN 

ENTREPRENEURSHIP

53


DIGITAL ECONOMY BLUEPRINT

6.0  INNOVATION-DRIVEN ENTREPRENEURSHIP 

8   Source: KNBS

There is a boom in innovative technology start-ups 

both locally and internationally. The pillar, which is 

Innovation driven entrepreneurship, is anchored on 

the presence of an accessible, inclusive and collab-

orative innovation ecosystem that supports entrepre-

neurship at all levels, encourages investments and 

integrates research and development through part-

nerships. Harnessing the potential of disruptive tech-

nologies to drive Africa’s transformation requires ad-

dressing the main barriers to digital entrepreneurship. 

While countries in Africa have made great strides in 

fostering entrepreneurship ecosystems, progress is 

mostly clustered in a few countries and urban centers. 

An innovators-entrepreneurship ecosystem is essen-

tially a collection of stakeholders, which include gov-

ernment agencies, financers such as venture capital-

ists; educators and R&D agencies; service providers 

and support agencies; and entrepreneurs themselves. 

Well-developed innovation–driven entrepreneurship 

ecosystems provide the bedrock for a robust private 

sector, by facilitating the creation and growth of busi-

nesses. 


Well, these ecosystems are central to the way digital 

businesses operate today, and effective policies need 

to reflect accordingly. A successful innovation-driven 

entrepreneurship  ecosystem  would  help  realize  the 

full potential of digital transformation, support en-

trepreneurial experimentation, and re-allocate human 

capital and resources to promising start-ups, SMEs, 

and high-growth technology companies.

New and emerging technologies are expected to 

change and improve many fundamental tasks and in-

teractions in the coming years, including work ethics, 

travel, and communication. Emerging technologies 

such as artificial intelligence, blockchain, Internet of 

Things and quantum computing, among others,  pres-

ent significant opportunities for Kenyans. Harnessing 

the disruptive nature of these new technologies to 

build a digital economy, however, requires huge capi-

tal investments in research and development. 

In simple terms, the digital economy is a marketplace 

that is defined, organized, enabled, and facilitated by 

technology. The Digital Economy transformation will 

open up opportunities on three fronts: digital skills, en-

trepreneurship and innovation.

Kenya’s transition toward the digital economy has led 

to the emergence of an innovation driven entrepreneur-

ship ecosystem based on factors and features rather 

than established game rules. Digital transformation of 

businesses will bring different benefits depending on 

the sector it is operating in, the stage of its digitaliza-

tion journey and its value proposition to customers, 

among others. In addition, digitalization could enable 

businesses reach out to a broader customer base or 

tapping new markets. Digital transformation will also 

target the MSME sector that accounted for 81.1 percent 

of employment opportunities in the country. MSMEs 

employ approximately 14.9 million Kenyans

8

. SMEs 


are a key driver of the digital economy, and need to be a 

key focus of the digital transformation process through 

digital entrepreneurial programs. 

54



6.0  INNOVATION-DRIVEN ENTREPRENEURSHIP


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