Hope for Rwanda, Business Proposal Example

Promoting Small and Medium Enterprises in Rwanda (Abstract)

There have been various initiatives to help in growth of the SMEs in Rwanda from various sectors but these initiatives didn’t bear any fruits due to lack of coordination and resources, structures of previous finance schemes. It is with this view that we are starting this non-profit organization to boost or support the growth of SME in various ways.

The name of the group will be “HOPE INTERNATIONAL GROUP”

Mission Statement

To support the growth of dynamic and viable SMEs significantly contributing to the economic national development

Proposal Summary

Rwanda’s SMEs have remained less competitive compared to the neighboring countries and if no efforts are made to make them more competitive, then it’s going to be worse.

There have also been no coordinated and well organized policies to address the SME landscape and unlock the potential of SMEs for national development.

Project Goals and Objectives

To create jobs and an increase in the tax and export base through the promotion of competitive new and existing SMEs mainly in value added sectors that will promote the growth of SMEs through enhanced biz support service.

To achieve our goals then we should be able to address the following.

Encouraging and promoting entrepreneurship among Rwandans

Challenge: Less or lack of entrepreneurial culture

Starting entrepreneurial lessons in school and curriculums

• Begin a course on youth entrepreneurship for youth interested in starting their own business.
• begin and monitor a mentoring program for young people starting businesses
• Look for role models by identifying successful entrepreneurs who would be example to young people
• Hold seminars, workshops and talks on entrepreneurship business related topics and visits by leaders targeting young adults from an early age.
• Starting an award scheme that may be run on a yearly basis to motivate the entrepreneurs.

Helping or making an easy way for Small and Medium Enterprises to be able to access to development services.

Challenges: High cost of doing business, lack of technical skills and management, lack of access to marketsand markets information.

Strategies

The services to provide should include

• Ensuring there are various training on bookkeeping
• Ready available tax advisory services
• Easy access to Information technology
• Market information
• Access to finance training workshops
• organizing and planning for business advisory clinics
• providing or giving advice to Small and Medium Enterprises on completing tax return
• Access to finance trainingprograms
• Organize for business road shows to popularize and encourage Small and Medium Enterprises use of business developmentsupport services

Come up with ways that can help Small and Medium Enterprisesto be able to access appropriate business financing

Challenge: Lack of access to finance. This is considered the biggest challenges for Small and Medium Enterprises.

Strategies

Scale up government loan facilities to include different components which will assistSmall and Medium Enterprises in all stages of the business cycle; the new components proposed are:

• Credit services – Recommending credit facilities to monitored and assessed Small and Medium Enterprises through bank partner banks
• Establish Enterprise Investment Scheme for private or public investors (both institutions and individuals) for equity participation in viable Small and Medium Enterprises projects
• Innovation fund – for research and development, market research, ICT andtechnology advancement
• Matching grants – matching enterprise equity injections into viable Small and Medium Enterprises projects
• Given the importance and share of the agricultural sector for Small and Medium Enterprises, the fund could alsohave a special subcomponent dedicated to agricultural financing
• Negotiate with banks to simplify and shorten lending procedures to Small and Medium Enterprises
• Guarantee funds – underwriting loans to Small and Medium Enterprises by financial institutions

Making the regulatory and fiscal framework simplified to promoteSmall and Medium Enterprises growth

Challenge: High cost of doing business

Strategies

What is needed to be done is:

• Make it simple, fast and not lengthytax procedures for Small and Medium Enterprises filing returns by reducing the number of payments
• Start a reward scheme for registered Small and Medium Enterprises that induce un-registered Small and Medium Enterprises toregister for the purposes of tax
• Provide financial and advisory assistance through the Small and Medium Enterprises development fund to support existing viable Small and Medium Enterprises that face closure for non-compliance
• Working with regulatory agencies to streamline and simplify regulations for Small and Medium Enterprises to be friendly

For the development of Small and Medium Enterprises there has to be an institutional framework that is well developed.

Challenge:

Lack of coordination and capacity, resources at an institutional level

Strategies

• Mobilize funding through financial institutions and other institutions that have already shown keen interest in expanding the Small and Medium Enterprises sector in Rwanda.
• Recruiting and training of qualified staff capable of managing the organization and fulfilling its mandate.
• Giving more strength to the governance with a strong Board of Directors chosen from private and public sectors including the association of bankers.
• Coming up with a financial sustainability strategy whereby the company can generate its own money.
• Strengthening equity investments in new Small and Medium Enterprises ventures

Resources

Human Resource

The project will require

The country director; to coordinate the organization’s activities within the country.

Deputy country director, to assist the director and help in coordinating the activities

Regional directors; supervise and organized and monitor the activities in his or her region.

The above positions should be the permanent staff in the beginning of the 1^st year.

20 volunteers for the start of the project, especially persons with a background or knowledge on how of SMEs operate.

Material Resources:

• Books to teach on business related topics and also for reading, references and studying.
• Rental houses where our offices will be situated.
• Computers, printers, photocopier and office stationaries.
• Communication equipment and public address systems.
• Training manuals

References

SNV in Rwanda. Retrieved on November 22, 2011 from http://www.snvworld.org/en/countries/rwanda

Minicom (2011). Republic of Rwanda. Ministry of Trade and Industry. Retrieved on November 22, 2011 from http://www.minicom.gov.rw/

School of Finance and Banking (2010).Center for Entrepreneurship Development Retrieved on November 22, 2011 from http://www.sfb.ac.rw/ced