Small and Growing Businesses in Africa: Profiles, Successes and Challenges
In Sub-Saharan Africa as elsewhere, Micro, Small and Medium Enterprises (MSMEs) play a crucial role in economic development and job creation. However the sector hardly achieves its full potential because of a series of challenges, among which is limited access to financial services, but also because of a more general lack of knowledge about this particular segment. In order to better meet MSMEs’ needs, a first step consists in identifying the profiles, growth paths, success factors and challenges faced by those who managed to turn their microenterprises into small or medium entities, hereinafter referred to as “Small and Growing Business” (SGB) owners. As microenterprises are likely to resort to microfinance institutions (MFIs) to get access to financial services, the study relied on five MFIs in Ethiopia, Kenya and Madagascar to identify a total of 83 SGB owners and interview them individually to get details about their paths.