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Contribution of small and medium enterprise to the economic development of Rwanda

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par Valens NYANDWI
Universite Nationale du Rwanda - Licence 2013

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2.10.4 Policy objective 5: Develop an appropriate institutional framework for SMEs development

Initiatives Currently, the SME landscape in Rwanda is scattered with institutions offering services to SMEs. However, there is no institution fully dedicated to SMEs nor is there one body

responsible for overseeing a comprehensive SME intervention.

In order for the Gov to succeed in its aim to prioritize SME development, and therefore increase the capacity of the private sector and meet its ambitious development goals, a clear institutional framework for SMEs needs to be developed. Responsibility for implementing the SME policy will be handled at the agency level, while MINICOM remains in charge of policy oversight.

2.11 General failure causes of the Small and medium enterprises and how to avoid them in the world?

There are a variety of reasons why a small business often fails. There are some steps that small business owners can do to avoid them. Here are ten causes of small business failure and how to avoid them.

1. Most small business owners don't have enough money saved up. You need to save up at least six months of worth living expenses along with six months of worth of expenses for your business too.

2. Some companies don't have enough advertisements throughout the year. You need to have do more advertising in order for people to know about your company. Advertisements are the most important to spend on since it will help your business become even more successful.

3. Some companies fail since they don't generate enough sales. You need to do more advertising so more people know about your company or lower the prices. You need to do a few specials in order to get more sales.

4. The company doesn't hire enough staff. You need to hire more staff when you have too much work to handle. You don't want to get behind on the work otherwise your customers won't be happy.

5. The company doesn't have a high enough budget. This is where most companies fail at since they don't have enough money to pay everything. The business owner needs to have more money before starting the company or get a business loan.

6. The company can't survive during the slow season so they often fail. The company needs to figure out a way to generate enough sales or save up enough money to survive during the slow season of the company.

7. A company doesn't have enough money to expand the business even though it needs too. The company needs to get a business loan, save money, or even outsource the work somehow.

8. The company doesn't have enough money to keep a professional image. Most companies lose sales when they don't look professional or even stay professional. They need to have the best of everything in order to succeed.

9. Some try to be cheap on products or service then they often fail. In order to stay successful in a business then you can't sell cheap products or service cause the only result is people not being impressed. You want people to feel they aren't getting ripped off.

10. Some try to violate city rules or state regulations. This is a big reason why companies go out of business real quick. You need to follow city rules and follow the state regulations otherwise you won't be in business anymore.

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