Micro, small and medium enterprises (MSMEs) account for approximately 70% of total global employment. A substantial portion—around 80%—of these enterprises operate within informal economies (ILO). Despite their widespread presence, MSMEs face many challenges, often achieving only one-third of their possible output compared to larger firms largely due to their limited access to economies of scale. This is why within our FINISH Mondial (FM) programme, one key area of focus is on capacity development for MSMEs in the sanitation and waste management sectors.

Overcoming challenges

MSMEs not only play a crucial role in driving economic growth but are also important entities in achieving the Sustainable Development Goals (Derhab & Elkhwesky, 2023). These enterprises are the most prevalent type of businesses in developing nations. In the African context, studies have identified several challenges faced by MSMEs, including limited resources, inadequate capacity support, insufficient training, unstructured fee collection strategies, and constrained revenue (Mamo, W. B, 2023).

With targeted support received through our FM programme one waste management MSME is defying these challenges and helping to create cleaner environments for all. Meet Taka Taka Solutions.
 
Reuse, Reduce and Recycle waste for a better tomorrow is Taka Taka Solutions’ proud moto which they live out through providing waste collection to 600 households in Nakura, Kenya, removing on average 550 tonnes of waste per year from the environment.

An inspiring MSME which was initially founded as a grassroots initiative by a group of eight youths committed to addressing waste management challenges in their community. Despite their dedication and hard work, their operations were informal and lacked the structure necessary for long-term sustainability.
 
This all changed when Taka Taka Solutions discovered FM. Recognising the potential of Taka Taka Solutions, FM provided essential business development training and support helping to increase their growth and impact.

Catalysing growth through business development training

The training offered by FM covered a broad range of important skills needed for the growth and formalisation of the business. This included solid waste sorting and management, financial management and bookkeeping, and tender writing. The trainings were designed to address specific gaps in their operations and help them transition from an informal group to a registered business entity.

A significant achievement for Taka Taka Solutions was their successful application for a waste collection contract with the local municipality. The business owner attributed the company’s success in securing a three-year contract to the skills and knowledge acquired through the FM training, with a specific focus on putting together a competitive and well-structured tender proposal.

Today Taka Taka Solutions is operating as a registered company with a team of over 15 employees, including youth from the local community:

“As the founder… I have realised significant change since I am now able to have an income as well as create employment to other youths, this would not have been possible without the business training offered by FINISH.” Ali, Taka Take Solutions Supervisor.

Previously, with a smaller team of 7-8 working on an ad-hoc basis, managing finances and operations was more challenging. With the growth to 15 employees, these aspects have become more complex, resulting in ongoing support from FM continuing to be valuable for the business.

Cleaner waste free environments for all

Currently, Taka Taka Solutions manages waste collection services for approximately 600 households in Nakuru. They charge a nominal monthly fee of 200 Kenyan Shillings (€1,30) for their services, but their approach is designed to be inclusive. Households unable to afford the fee still receive the necessary services, demonstrating their commitment to community welfare and environmental sustainability.

Looking ahead, Taka Taka Solutions has set ambitious goals for the future. They aim to achieve self-sustained waste sorting operations within two years and explore revenue opportunities from plastic waste. Their advocacy efforts with the county government for improved waste management practices further reflect their dedication to enhancing local environmental and community health.

Sustainable system change

Our FM programme has facilitated the construction of more than 2 million safely managed sanitation systems and mobilised well over €500 million in local financing since its inception in 2009, as well as collect and safely treat over 140,000 tonnes of waste. The real impact goes beyond the numbers though and is seen in the enhancing of livelihoods, protecting the environment, and fostering sustainable practices. Supporting MSMEs and focusing on system change lies at the heart of this impact, exemplified through Taka Taka Solutions’ journey of growth.

The evolution of Taka Taka Solutions from a youth group to a registered business highlights the impact of capacity-building programmes for MSMEs. By formalising their operations and improving their management practices, Taka Taka Solutions has significantly enhanced their efficiency and contributed to a cleaner, healthier environment in Nakuru. Their story underscores the importance of targeted support in empowering MSMEs and advancing the Sustainable Development Goals and is just one example of the more than 1,200 MSMEs FM is supporting across the globe.

As we move forward, let us commit to scaling these efforts, collaborating with partners, and investing in the capacity of MSMEs. Together, we can unlock their full potential, creating sustainable businesses that drive social and environmental change in communities worldwide. Reach out to our team today to explore business development partnership opportunities.

By Sajib Mahanta, WASH Specialist.