Small and medium enterprises struggle to acquire loans from financial institutions largely because they lack collateral.

The remarks were made by Emmanuel Hategeka, the permanent secretary in the Ministry of Trade and Industry, during a workshop on skills development, leadership and marketing for SMEs held in Kigali yesterday.

Hategeka was advising entrepreneurs on the need to build reputable platforms through good record-keeping and investing in tangible assets before turning up at financial institutions for funding.

"It is much easier for a bank to give you a loan after establishing a good reputation. As a business, this is what gives them an insight into your direction,” Hategeka said.

Organised by the ministry in partnership with Sauder Business School, University of British Columbia, Canada, the workshop attracted over 90 entrepreneurs from across the country.

During the workshop, Hategeka also hinted on demand of local products on the international market.

"Exportation of products from Rwanda is very possible and if you have skills to add value to the products, they can be competitive enough for the global market,” Hategeka added.

Jeff Kroeker, a lecturer at the Canadian university, told entrepreneurs that such challenges were not unique to Rwanda but were rather prevalent world over.

Kroeker insisted that unless focus is put on three major components namely strategy, marketing and financial management, during the start, businesses always fail to live beyond their infancy stage.

"The success in using these tools is the same all over the world hence the biggest challenge is not capital because it is available in banks which means only good business ideas and tools can earn you access to finance and growth,” Kroeker said.

However, Arielle Uwonkunda, a student of Marketing and Entrepreneurship from the School of Business, university of British Columbia, advised local entrepreneurs not to shun business training opportunities since these are key to funds access.

She advised Rwandan exporters to improve branding to help their products can favourably compete on the international market.

Vestine Umutoni, a participant from Imigongo Décor, a Kicukiro-based entreprise that makes crafts said: The knowledge I have acquired will help me deal directly with clients and eliminate the middle men,” Vestine said.

Editorial@newtimes.co.rw