Increased funding to SME’s is the way forward

Small and Medium sized Enterprises (SME’s) are the backbone of our private sector. They employ the vast majority of the Rwandan work force who aren’t already in the agricultural sector, and they can have an even bigger impact in the future. As more people, especially the youth, join the work force, the existing number of jobs will not be sufficient. It is therefore imperative that new jobs are created and there is no better way to do it, than setting up new SME’s or expand the existing ones.In the new budget, to be read next week, the Ministry of Trade and Industry (MINICOM) has earmarked 26% of its budget to support SMEs. This is commendable.However, beyond allocating the funds, there should a strict mechanism for follow-up. One of the challenges SMEs face is sustainability. Many of them collapse within the first year of opening.This trend can be reversed with additional training in business, marketing and accounting skills. Beyond providing capital, the SMEs will need a lot of nurturing.SMEs have the potential to drive Rwanda’s economy to the next level. This is in addition to providing employment and improving the lives and welfare of those they employ.Focus on supporting them is definitely worthwhile.

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Increased funding to SME’s is the way forward