Stanbic Incubator CE moots reset button for entrepreneurial training

March 6, 2025 in Business, Opinion, Policy by Editor

Poran says to unleash the full potential of entrepreneurship as a genuine engine of economic growth, focus must shift from merely celebrating the quantity of businesses created to nurturing the quality, resilience, and competitiveness of these enterprises.

Africa’s entrepreneurial spirit is alive and well, but for small business owners the path to sustainable growth is littered with numerous challenges writes Catherine Poran.

The Economist’s poignant observation recently, “too many businesses, too little business” aptly captures this paradox. Uganda may boast of a high rate of business creation yet the promised rewards notably job growth, increased incomes, and enhanced competitiveness, remain largely out of reach.

John McDermott’s writes that this situation exacerbates the widening economic gap between Africa and the rest of the world, leaving Uganda in a precarious position where over 700,000 eager job seekers descend upon a labour market that offers up only 40,000 positions annually.

In this challenging environment, entrepreneurship is often taken on as a necessary survival mechanism rather than a catalyst for triggering meaningful economic transformation.

I have the privilege to lead the team at the Stanbic Business Incubator, where, every day, we witness firsthand the heavy toll that necessity-driven entrepreneurship takes on our economy.

A recent impact survey revealed that 87% of the 500 supported entrepreneurs we have trained across our different capacity building programmes, most launched their businesses out of necessity rather than opportunity.

 Reimagining entrepreneurship

To unleash the full potential of entrepreneurship as a genuine engine of economic growth, we must shift our focus from merely celebrating the quantity of businesses created to nurturing the quality, resilience, and competitiveness of these enterprises.

This shift can facilitate a transformative journey, allowing entrepreneurship to be a robust pathway to prosperity rather than a simple alternative to unemployment. In reimagining SME development, adopting a demand-driven focus is essential.

Policymakers and development financiers should prioritize businesses that address genuine market needs. Supporting scalable enterprises ensures that the growth of businesses contributes meaningfully to job creation and economic vibrancy.

Additionally, we can enhance the productive linkages in our economy by strengthening cooperatives, which serve as pillars of support—providing enhanced value addition, market access, and bargaining power for small-scale businesses. This collaborative approach fosters a sense of community among entrepreneurs, allowing them to draw strength from one another which build resilience.

Expanding access to growth capital is also critical. Innovative financing models—such as performance-based financing, blended finance and alternative credit scoring—can provide the necessary means for entrepreneurs to thrive and flourish.

Equally vital is our commitment to integrating SMEs into the digital economy. By embracing technologies such as fintech, e-commerce platforms, and smart contracts, we can equip entrepreneurs with tools to increase efficiency and expand their reach, transforming their visions into reality.

Furthermore, supporting the youth and women through tailored programs strengthens the SME ecosystem, because it fosters the next generation of entrepreneurs.

As we emphasize inclusivity in our entrepreneurial landscape, we also create more potential for vibrant innovation. Simultaneously, our encouragement of climate-smart solutions aligns growth with environmental stewardship, ensuring that the fruits of economic growth are sustainable for generations to come.

The Stanbic Business Incubator stands as a beacon of hope, uniquely positioned to guide this transformative journey. We are committed to aligning our capacity-building programmes with supplier requirements to ensure that SMEs are supply chain-ready to efficiently participate in Uganda’s economic output.

Our cluster approach encourages the formation of joint ventures or consortia, fostering increased competitiveness and market resilience. By de-risking SME participation in value chains through blended financing models, we aim to attract investors and stimulate sustainable growth, allowing businesses to thrive.

In confronting the challenges of low productivity and a lack of specialization among SMEs, we must encourage businesses to focus on their core competencies. Facilitating effective capital allocation will ensure that resources flow towards high-impact opportunities.

Much depends on policymakers, development financiers, and industry leaders to cultivate an enabling environment for entrepreneurship to flourish. A collaborative approach that inspires innovation and fortifies resilience will drive sustainable economic growth and transform Uganda’s future.

Together with our partners, the Stanbic Business Incubator is dedicated to nurturing an entrepreneurial ecosystem that not only flourishes with the number of businesses created, but also positively impacts Uganda’s economic landscape.

Together, let us reimagine entrepreneurship—not just as a means of survival, but as a powerful driver for a prosperous and sustainable future.

Catherine A. Poran is the Chief Executive of the Stanbic Business Incubator, the enterprise development subsidiary of Stanbic Uganda Holdings Limited