One of the positive aspects of today’s world is how many people are intent on taking a chance on themselves and their dreams. The exhilarating urge to “stop working for the man” has fuelled their penetration into the entrepreneurial scene, the question is, do they all have what it takes? ALSO READ: Women leaders in Rwanda’s finance sector One of the most essential items in an empowered woman’s tool belt, especially one in business, is financial literacy which gradually builds on to become financial independence, a goal pursued by so many. This, among other things, was part of a discussion forum for Rwandan women in finance. The gathering aimed at building a community among “womenpreneurs” working with SMEs, and availing financial inclusion, which entails sharing information about open markets and revenues as well as providing access to the markets and to finance. “A woman has a tendency to multiply the little she is given, and the support that will help them scale up will enable them to lift others up along the way, and before you know it it’s a movement,” says Joy Rwamenge, CEO of New Faces New Voices. One of the issues that seem to take prominence with not only women in business but aspiring/young entrepreneurs is access to finance. It hasn’t been a bed of roses for most, and for those just starting out it becomes a little harder to get facilitated by financial institutions because they don’t meet the non-negotiable requirements to receive a loan. “It’s hard to gain a bank’s trust without collateral, but start-ups need to have more options for funding otherwise they won’t move from point A to point B,” says Nicole Kayitare, an aspiring entrepreneur in her mid-20s. ALSO READ: NCBA’s Lina Higiro on new women foundation to push for parity in finance sector How far and how well a business is operated before seeking financial assistance can make or break the interest of potential investors, and in the case of Valentine Ishimwe, the journey was a slow and steady one. Ishimwe is an electrical engineering graduate that desired to penetrate the entrepreneurial space from the get-go. She wanted to start a car wash business that only employs women, but she didn’t have enough capital at the beginning. She employed a few women and started the business with house calls only, and that gradually expanded the business because referrals go a long way. She was able to receive a grant shortly after and that helped her get a new location and really establish the business. “One of the lessons I’ve learnt is that you have to start where you are at and keep on persevering, but you can’t achieve much without acquainting yourself with the finances. Keeping up with the cash flow helps to get a better understanding of the business and makes it easy to track and improve sustainable progress, which makes the business more eligible to financers,” Ishimwe says. ALSO READ: Rwanda bridges gender gap in financial inclusion by 10% One of the highlights of the event was an anecdote that was shared about a woman whose husband gave her money to buy a new dress. Rather than buy the dress, she bought clothes for her children, groceries, and a second-hand shirt for herself. From a financer’s perceptive, this is not a woman that can be trusted easily with funds. She is vulnerable in the sense that she is likely to squander the money she is given before she invests in herself, which was the goal, to begin with, and that doesn’t make her liable for financial assistance. Most people would consider what she did something to aspire to and maybe to some extent it is, but if there’s anything to learn from the First Lady’s address on Women’s Day, it’s that women shouldn’t have to be doers of all to be enough. “You don’t have to get a degree in finance but getting acquainted with the basic financials of an SME is not a hard task, and knowing the ins and outs of one’s business is a survival skill that benefits them significantly,” says Diana Kareba, Executive Director of Rugori. Financial experts like Prossy Kalisa emphasised how important it is to nurture aspiring entrepreneurs and “offer advisory services and mentorship to aid in capacity building”—alongside short-term collateral-free loans. It became apparent that financial literacy might be more important than getting tangible capital that you may not make the best use of at the beginning. According to Rica Rwigamba, country director of the Mastercard Foundation, it is in the best interests of young entrepreneurs to be financially literate because it positions them better to make the most of the opportunities bestowed upon them. “Financial literacy is one of the key elements to increase financial inclusion as it allows young people to understand and take advantage of business financing opportunities from an informed perspective. It is, therefore, important to collectively have a strong focus on increasing the financial literacy level among our young people to make sure they can become economic actors and furthermore create employment opportunities for others,” said Rwigamba.
