A report on business barriers in Rwanda is expected to be released this month by a South African firm, Strategic Business Partnerships for Growth in Africa (SBP). According to Emmanuel Rutagengwa, policy analyst at the Private Sector Federation (PSF)—an umbrella organ of the private sector, if released, the report is expected to cut costs of red tape for businesses in the country hence setting the pace for ironing out the identified business bottlenecks. And that it will result into improved business trends in the country, assisting in attracting more local and outside investments into the economy. Indeed, this is likely to yield more substantial benefits to the economy since it will help stakeholders in identifying these bottlenecks and suggesting vivid solutions. Besides, it is also a clear indication that government is making firm commitments to create a more business friendly environment, meaning the role of the private sector enterprises to our economy is indispensable. It’s true there are a host of barriers resulting from business regulations in the country, which individual businesses have no control over. And there are also other critical barriers to business growth and development in the country ranging from institutional environment including bureaucracy, and external financial constraints including the high cost of capital that businesses cannot control themselves. Largely, a business should focus on its internal constraints—factors within its control that are restricting it from achieving its objectives. Most businesses in the country (SMEs in particular) are challenged by poor recordkeeping and a lack basic business management experience. This limited technical knowledge, inadequate managerial skills, lack of planning, and lack of market research is a direct indication that most of the businesses don’t have training programmes for their employees. The most important resources in the organization are the human resources. For any business to register strong growth and development, it requires it to have the staff with skills and competence to do what they are expected to perform. This requires businesses which support training to make sure staff can do the job efficiently. It will improve the marketing position, creating a brand name and suitable image and also increase chances of access to finance. The PSF is the strongest body in the country to convince government to address some of the external barriers affecting private enterprises. It also remains the strongest to help businesses increase their revenues, profits, subsidiaries while employing more staff through addressing their internal constraints. Ends
