Start Ups and SMEs

by Developed Africa 12. May 2014 09:00

Whilst there are now a lot more methods for start-ups to gain funding, keeping the business going proves difficult for many.

At a time when even medium sized businesses struggle to maintain momentum, it is evident that it is often even harder for start-ups who, even after receiving the funding they need, fail to keep their heads above water. So what is it that is holding them back, and what can be done to resolve the issue?

AFK Insider attributes the difficulty of setting up a new company to "a market dictated by cartels, multinationals, and government interference", but pointed to a method which may help struggling start-ups to see their plans through. Known as "garages" there are specially tailored hubs that impart advice and allow access to equipment and utilities to help entrepreneurs to better their approach to their start-up.

the startups can access free office space, free utilities and a chance to network with other small businesses in various fields and learn from each other even as they interact with mentors hired by the incubation facilities." 

To perhaps help the difficult process of starting up and maintaining a new business, a young entrepreneur from Uganda has created an app that can help. The app was created a couple of years ago, and is a "management app" that aims to help budding entrepreneurs to keep all their records and stats in order.

One of the main challenges he believes limits many SMEs today is keeping adequate financial records. Mawano said those entrepreneurs who do keep records, genreally store them manually in a book. SME managers, therefore, have to do their own calculations to determine profit or loss over a week, a month, or a year.

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