Entrepreneurs and SMEs in Rwanda: The Model Pupil Paradox

Entrepreneurs and SMEs are the darlings of neoliberal development thinking, but have failed to deliver the expected economic transformation in Rwanda. This book deconstructs the myths around entrepreneurship and SMEs and offers key policy insights for Rwanda and beyond.

Format: Paperback / softback
Length: 256 pages
Publication date: 28 July 2022
Publisher: Bloomsbury Publishing PLC

Entrepreneurs and Small and Medium-sized Enterprises (SMEs) have emerged as the focal points of neoliberal development ideology, with the prevailing belief being that these enterprises possess the potential to drive economic transformation in low-income countries. This mindset has exerted a significant influence on development policy in Rwanda, yet it has singularly failed to yield the anticipated emergence of a new class of entrepreneurs and a thriving SME sector. This book aims to dismantle the misconceptions surrounding entrepreneurship and SMEs by exposing the shortcomings of neoliberal approaches to microcredit and related programs in addressing the economic challenges faced by countries like Rwanda. Through a comprehensive study of successful and aspiring entrepreneurs, Poole identifies the key factors contributing to successful entrepreneurship. He also uncovers the unintended consequences of the entrepreneurship and SME development prescription and provides valuable policy insights that have implications for Rwanda and beyond.

Neoliberal development thinking has placed a significant emphasis on the role of entrepreneurs and SMEs in driving economic growth and reducing poverty. However, the reality in many countries has fallen short of these expectations. In Rwanda, for example, the government has implemented various policies aimed at promoting entrepreneurship and SMEs, including microcredit programs and tax incentives. However, these efforts have not yielded the desired results, with the country still facing significant economic challenges.

One of the main issues with neoliberal approaches to entrepreneurship and SMEs is that they prioritize short-term profits over long-term sustainability. This focus on immediate returns can lead to unsustainable practices, such as over-reliance on external funding and a disregard for environmental and social concerns. Additionally, the emphasis on individual entrepreneurship can create a culture of risk-taking and speculation, which may not be conducive to long-term economic growth.

Another problem with neoliberal approaches is that they often fail to address the underlying structural issues that contribute to poverty and inequality. In Rwanda, for instance, the country has a high unemployment rate, particularly among young people. Despite the government's efforts to promote entrepreneurship, many young people are unable to access the necessary resources and support to start their own businesses. This lack of access to capital and resources can create a cycle of poverty that is difficult to break.

Furthermore, neoliberal approaches to entrepreneurship and SMEs often prioritize the interests of large corporations over the needs of small businesses and entrepreneurs. This can lead to a concentration of power and wealth in the hands of a few, which can undermine the democratic process and limit opportunities for innovation and growth.

To address these challenges, it is important to adopt a more holistic and sustainable approach to entrepreneurship and SMEs development. This approach should focus on building resilient and sustainable businesses that can contribute to long-term economic growth and social development. It should also prioritize the needs of small businesses and entrepreneurs, including access to capital, training, and support.

One approach that has shown promise in addressing these challenges is the development of inclusive business models. Inclusive business models are designed to create economic opportunities for marginalized communities, including women, youth, and people living in rural areas. These models often prioritize social and environmental concerns, as well as long-term sustainability, and can create a positive impact on both the business and the community.

Another approach is to focus on building strong infrastructure and institutions that support entrepreneurship and SMEs. This includes improving access to education and training, developing financial institutions that provide affordable loans to small businesses, and promoting innovation and research and development.

In conclusion, entrepreneurship and SMEs have the potential to drive economic growth and reduce poverty, but neoliberal approaches to development have failed to deliver the desired results. To address these challenges, it is important to adopt a more holistic and sustainable approach that prioritizes long-term sustainability, inclusivity, and the needs of small businesses and entrepreneurs. By doing so, we can create a more equitable and prosperous future for all.

Weight: 322g
Dimension: 139 x 216 x 17 (mm)
ISBN-13: 9781786996268