As a business owner, when you started your business, did you imagine it surviving you? Did you picture your children, or even grandchildren, inheriting what you’ve built? Or was it a means to an end, another income stream, a survival mechanism, a hustle to stay afloat?

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For many small and medium enterprises (SMEs) in Rwanda, the honest answer leans toward survival. It’s understandable.

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In such a young economy, many entrepreneurs tend to operate in the now. But the danger of this short-term focus is that it blinds us to the greater potential of what SMEs can become - generational institutions that endure beyond founders and create wealth that survives across lifetimes.

Why most SMEs stay stuck in survival mode

According to Rwanda Development Board, SMEs account for over 90% of private sector enterprises and contribute around 41% of GDP. Yet, few ever scale or even go beyond the founder.

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Many SMEs start for the purpose of surviving, and when they become successful, they are not prepared to grow larger. They haven’t formalized their business enough to access finance easily, and they often mix their personal and business finances, a decision that brings several shortcomings in the long run.

In other words, many SMEs are built around the person, not the enterprise. This "founder-as-pillar” trap creates fragile businesses that can’t stand when the founder steps away. Without clear governance, documentation, or empowered teams, the business becomes a reflection of one person’s hustle rather than a legacy that can be handed down.

Building for generations means moving from an informal setup to a structured, data-driven enterprise. One that operates on systems. It starts with a clear mission and vision, formalizes processes in every area, from financial reporting to daily operations, and ensures that decisions are guided by strategy. It also requires building mission-driven teams who can carry the vision forward, while investing in governance and financial literacy as the very foundation of sustainability

Financial literacy, in particular, remains a major blind spot. And many SMEs also view governance as a compliance requirement meant to satisfy regulators or banks, rather than as a strategic tool for growth. Financial institutions must take the lead in helping MSMEs build proper governance and access sound financial advice.

The role of banks beyond lending

For banks, the question isn’t just how to lend, but how to last with their clients. Banks need to understand the SMEs, their challenges, and provide products and services that fit their specific needs. A banker should ask three key questions: How is the business? What’s the plan for the next 6–12 months? And how can we help?

This seemingly simple approach transforms a bank from a lender into a partner, one that anticipates SME needs, provides advisory support, and connects businesses to growth opportunities.

Globally, this shift toward relationship banking is being recognized as critical to SME success. According to the World Bank, SMEs with access to both finance and non-financial support, such as training, market access, and advisory services are 30% more likely to scale sustainably than those that only receive credit.

In Rwanda, the opportunity lies in banks embedding these support systems within their SME engagement models, helping entrepreneurs not just borrow wisely, but build with a purpose.

A truth worth remembering

The one truth every SME should remember when building for generation is to build a business as if you were planning to sell it one day.

Track every bit of value you’ve created, your cashflows, profits, and processes. Hire staff with the right attitude, invest in the right systems, and make sure your business can thrive without you.

That’s the difference between a hustle and a legacy.

The writer is the head of SME at Bank of Kigali.