Across the world, start-ups are reported to have low survival chances with most folding while at a nascent stage. Experts say that mistakes entrepreneurs make during the nascent stage of their Startups include failing to generate demand for their services or products amidst the already existing crowd as they fail to do an in-depth study about the market opportunity and the competitors in their specific area of business. Not understanding the scalability factor, overlooking People Management are also cited among common mistakes. People management in business has two sides – one involves employees who are responsible for all the amazing work that goes around while the other involves consumers who will benefit from your products and services. Minimal marketing efforts, lack of transparency, bad hiring decisions and not adopting cloud-based systems are also on the list of mistakes entrepreneurs make during the nascent stage of their startups. Doing Business spoke to different start-ups on their challenges, successes and what they need to thrive. Grace Umuhire with Mona Fashion Design Company that locally makes shoes from leather said that she launched the business in which many are engaged but tries to be innovative. “I toured different businesses to see how they make it in this fashion category. I came up with an innovation like a different way of making shoes. We do different designs based on suggestions and wishes of clients. As a start-up we have limited capacity and knowledge and therefore we need to network, share experience and learn from others,” she said. She added that linking with big investors is important for the start-up’s growth. “It helps to gain news ideas on how a business can thrive, how to make profits and how profits can be spent in growing the business,” she said. Umuhire said that she started the business four months saying her business is still at nascent stage. “We make over 10 shoes per day but we need to expand to at least 50 shoes per day. We want to have a stock of shoes, expand the market so that we ensure sustainable supply across the country. We have met a firm “STARTUP’NKAP” that will help to link to other investors who can financially support us, increase our knowledge and ideas on how to improve our business,” she said. Roselyne Nyirahategekimana is The CEO of Work Roselyne Ltd that processes Roselle plants (hibiscus species) into tea bags, powder, flowers and tea. She said that financial support and training for business development are highly needed for start-ups. “We started the business in 2018. But we need high capacity processing machines to increase production because the main challenge is that we cannot satisfy the demand of our products on the market. Our exports are also still limited. Therefore we need financial support and partnership with big investors to increase production. Start-ups also need information on the local market and global market for opportunities,” she said. She said that the company transacts between Rwf1.5 million and Rwf2 million sales per month. “If we get support, our sales can increase up to Rw10 million per month in the next five years,” she said. Alexis Ngabonziza, is the founder of Alexis Badege Mining Ltd that produces flooring tiles from limestone, commonly known as ‘Urugarika’ and other products. He said that the company needs partners to increase production. “A start-up needs financial resources and ideas to buy equipment and increase production considering that machinery are very expensive. We need to partner with big investors. We need to have stocks across the country,” he said. He said that the company currently makes 400 square metres of flooring tiles per year. “We need to increase production to 1,000 square metres. Start-ups really to embrace modes of marketing because we do not have enough marketing skills. Need modern equipment and increase production,” he said. Didan Rwabika, Head of Marketing and Sales in Sky Stone Rwanda Group that manufactures hand sanitizers said that start-ups need skills on how to manage resources and expand businesses. “We have another project to process honey and also make mosquito repellants but we need innovative ideas,” he said adding availability of raw materials is another big challenge for start-ups. Start-ups to benefit from new programme The local start-ups and SMEs are set to benefit from STARTUP’NKAP interventions. STARTUP’NKAP is an innovative incorporated finance and investment firm designed to attract, angel investors, crowd funding and other financial services from various sectors of finance for an inclusive financing for small and medium sized enterprises with focus on industrialization. The firm that started in Cameroun has launched a subsidiary in Rwanda. According to Gilbert Ewehmeh, The Chief Executive of STARTUP’NKAP there is need to build start-ups capacities through trainings, how to design good business plans and business models that attract investors. “Pitching is very important for entrepreneurs and investors to get money. We have to get them ready for investment opportunities,” he said. “Our role is to connect, mobilize finance and channel resources from the different sectors in view of investing in SMEs and start-ups. One of the utmost focus is on early stage businesses and ventures with a prototype to scale and take them to the next level hence creating jobs, creating wealth, profitability in businesses and dividend for our investors,” he said. The firm has launched a Startup’Nkap CoffeeLab, a monthly innovative meet and talk networking event which brings together Start-ups/SMEs and potential investors such as: Angel Investors, Venture Capitalists, Equity Investors, with focus on experience sharing, business and investment opportunities. It has other programs that support start-ups and connect them to investors; help them move to the next step founded on networking. They include Accelerator Program providing intensive and time-limited business support for cohorts of start-ups and to fast track their growth by offering training, mentoring business support, and opportunities for fundraisings and exposure to the market and networks. The programme is intended for start-ups ready to scale and expand and expose them to investment opportunities. The Big Fish programme gives budding entrepreneurs the chance to secure business deals that could make them millionaires. Business Exchange program aims at engaging startups / SMEs and stakeholders for a business meeting across Africa with key objectives for Business scalability and expansion, investment clinic. Networking with key ecosystem actors. The Innovation Fund is a portfolio that brings together the contributions of donors, Business Angels and from which are drawn the resources allocated, to the most competitive and innovative projects. “One of the key challenges for a start-up is access to finance. They cannot have access to loans because they do not have collateral security and guarantee. The alternative is now what we call innovative finance,” he said.
