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.
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