Research conducted by Department for Private Sector Development, Centre for Innovation and Technology Transfer at Kigali Institute of Science and Technology (KIST) shows that lack of skills and difficulty in accessing loans has a strong negative effect on starting business for beginners. It also shows that most beginners who are fresh graduates lack security to secure loans from financial institutions.

"I realised that starting a department that can help graduates in training in practical works as well as one that enables trainees secure loans could help them in starting their business,” Head of  Private Sector Development, Centre for Innovation and Technology Transfer, Rajee Aggarwal said.

Gaston Ndorimana, a fourth year student of Mechanical Engineering at Kigali Institute of Science and Technology (KIST) is among the many sighting a future as a self employed engineer.

Ndorimana is undergoing a one month training in the cottage department at KIST. The cottage department is one of the structures set-ups at KIST to facilitate students undertaking Mechanical Engineering. It enables them to get access to practical work in both maintaining and designing different types of machines.

The department offers students with possible and necessary aid to ensure that students overcome challenges as they apply the theory in their field of work.

Ndorimana explains because of this training, he has gained confidence in applying theory into practical work, although he gets some challenges as a trainee.

"I am convinced and confident that I am able to apply the theory from university into the practical work as I endeavour to start independent life,” he noted. He said that he has gone through the process of maintaining specific machines and is now exposed to methods of designing machines.

However, he is worried about employment after completion of the course. He says that that’s why he decided to join the private sector as self employed.

Mostly, the 25 year old and future engineer is worried about some requirements for employment based on the job adverts he comes across.

"I read different papers, and I take more time whenever I come across a job advert. This helps me to sight further about that time when I will be applying for a job. I am worried about the experience employees require before one wins a job,” he said.

Ndorimana explained that the experience employers require ranges from four to six years. He wonders if they (employers) consider the fresh graduates from the university.

"We can not get experience while at university. What we are able to get is enough training to ensure effectiveness and competence in applying the acquired knowledge into practicals,” he said.

He also said that he was aware of engineers already in the field. He feels that by the time he graduates, these people will have attained more than the experience required of them. To him, this means that they stand more chances of wining high-quality employment since they have more experience.

"It is not possible for an employer advertising a post that requires an engineer with six years experience to leave out that one with eight years experience who happens to have applied for the job,” he said.

He added that such an imagination has given him a mind-set focused on becoming a self employed engineer. Determined to start his own workshop, he commended the cottage department at his university and advised even other universities in the country to adopt the setup.

"Becoming competent in the profession is the best way to achieve becoming self employed. Being that someone is to work independently, the quality of work he does, wins him or her more customers hence attaining growth in business,” he noted.

However, the future engineer pointed out, as matter of great concern, lack of enough capital to kick-start his life time agenda. He said that in addition to knowledge or skill capital, lack of financial muscle has left many people’s plans on paper.

"I am sure that securing a loan from any of the financial institutions requires security. Like any other beginners in business, I do not have such security yet the financial source must be dependable to avoid disappointment and failure in my ambitions,” Ndorimana said.

The only way through which he can be able to access money and make his plans a success is to apply in time with the KIST Enterprise Development Fund (KEDF), a KIST initiative under the development of private sector development.

According to the Head of private sector development, Rajee Aggarwal, the project was set-up in 2005. It was aimed at providing start-up capital to qualified Rwandans from all institutions of higher learning so as to establish their own technology based businesses to accelerate the small and medium enterprises in Rwanda.

"After undertaking a survey on what is highly effecting private sector growth, mostly amongst graduates in starting-up their own business so that they can apply the knowledge attained from the universities, we realised that there is lack of capital which is as a result of failure to access loans. This based on lack of collateral security to present before they can secure loans,” Aggarwal noted.

"It is against that back ground that we set-up the project to address financial needs for up-coming entrepreneurs.” He explained that it is not easy for all graduates to be employed by government even if job creation by government is raised.

Therefore starting up personal businesses based on the knowledge attained is perfect as one applies for a job.
According to Rajee Aggarwal, the project was established by KIST with assistance from the President’s office and the United Nations Development Program (UNDP).

"We signed a Memorandum of Understanding (MoU) with CSS Zigama Bank, so it’s through that bank that our graduates access loans.”

About lack of skills in starting business, KIST is utilising the cottage department to impart to different people the skills of making finished products like candles, chalk and other small finished products.

Therese Bibonobono, Director Chamber of Women Entrepreneurs in the private sector, said that women are being helped in many different ways.

"We have two programmes educating women in different skills. The Goldman Sachs (GS) programme at School of Finance and Banking (SFB) in partnership with the Michigan University’s David Williamson Institute (DWI). The programme is aimed at providing entrepreneurial skills to enable them (women to have skills of life that can help them to get out of poverty,” she explained. Another programme is the peace through business, an institute for economic criteria.

The official said that quite a number of women have undergone the entrepreneurship training programme and graduated in various disciplines.

"These women do not pay for any service. All the costs are taken up by Goldman Sachs (GS), a leading global investment banking management firm which has an agenda of assisting 10,000 women entrepreneurs around the globe in entrepreneurial skills,” she said.

The women have not only acquired skills as an effort to make them start or maintain a good business structure; some have also been given a financial hand basing on the performance and need of financial arm to improve on the performance.

"We have just concluded an exercise that has given out Rwf 12,000,000 to women in 12 units in rural areas which include 5 districts of Rusinzi, Karongi, Muhanga, Kayonza and Gicumbi. It was based on performance,” Bibonobono said.

She added that the money that was distributed was donated to the Chamber by UNFPA through the Ministry of Gender and Family Promotion to help women to improve their performance in business and benefit from their efforts.

She explained further that women in the chamber hold an annual national roundtable. Here, women from different parts of the country meet to share challenges and get solutions which can help in maintaining and improving their business.

"Although not all women in the country can be able to take part at the national roundtable, we encourage those who are able to attend. We also organise a structure through which women at the lower levels also benefit from the meeting by sharing information with those who attended,” she said.

In a similar set-up, she said that the chamber have managed to take part in to a regional roundtable which is aimed at searching for business ideas and sharing challenges.

"We are now the organisers of the next regional roundtable which will take place in Nairobi Kenya in September,” she said.

When graduates become competent with skills and are able to secure loans as a start-up capital, they will be able to start individual or personal businesses which will help in developing the private sector. Thumbs up to these initiatives.

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