Legal experts have warned that start-up businesses risk to be shut down if entrepreneurs behind them do not seek quality legal services.
Since policies and regulations often change, experts argue that entrepreneurs who do not seek proper legal advice often end up using outdated information which is detrimental to their enterprises.
The call comes in the middle of a global entrepreneurship week, which will end on November 19.
The week, which is recognised internationally, aims at inspiring entrepreneurs across the world to help them explore their potential as self-starters and innovators.
“This week is meant to generate a groundswell of energy and support for entrepreneurship,” Benjamin Cox, the National Coordinator Babson-Rwanda Entrepreneurship Centre said, adding that during the week, there are efforts to bring lawyers and entrepreneurs on a roundtable to enable them (entrepreneurs) to obtain basic legal tips.
Although current government initiatives have eased doing business in the country, analysts say that entrepreneurs, particularly Small and Medium Enterprise (SME) owners are wedged on how to legally negotiate best terms in the process of securing funds.
As a result, they say, borrowers especially start-up businesses end up accepting unfavorable loan terms from lending institutions as it is difficult for them to understand the terms and conditions for such loans.
Faustin Mbundu, the Chairman of the Private Sector Federation (PSF), is optimistic that this is the opportune moment to support the next generation of business leaders and provide them with inspiration.
“The week will spark a renewed vigour for innovation and business ownership in the country as well as shine an international spotlight on how entrepreneurship is shaping,” he said.
The timing and balancing of risk creation is the hallmark of a successful entrepreneur, he added.
Rebson Dzala, the General Manager of Centre for Business Solutions (CBS), says that entrepreneurs should engage in reducing risks, by actively changing the prevailing conditions and also changing the rules of the game.