How intelligent capital is essential in helping SMEs recover from COVID-19

The COVID-19 pandemic has wreaked havoc on small and medium-sized enterprises (SMEs) and entrepreneurs around the world, and Africa is no exception. In response to this crisis, numerous initiatives have been launched to provide support to struggling businesses in the region. One standout player in this arena is Entrepreneurial Solutions Partners (ESP), which has teamed up with the MasterCard Foundation's 'Hanga Ahazaza' program to provide intelligent capital to young tourism entrepreneurs and aspiring business owners. ESP's Director & Co-Founder, Charity Kabango, recently sat down with CNBC Africa to shed light on how intelligent capital is essential in helping SMEs recover from the impact of COVID-19. The 'Hanga Ahazaza' program, specifically tailored for young entrepreneurs in the tourism and hospitality sector, aims to equip them with the necessary tools and resources to thrive in a post-pandemic world. Intelligent capital, as described by Kabango, is a strategic blend of insights, technical assistance, business development, and access to capital. This holistic approach is designed to support startups at different stages of their business growth, providing them with the guidance and financial backing needed to succeed. ESP is currently recruiting for its third cohort, targeting bright young entrepreneurs in the tourism and hospitality sector and its value chain. During the interview, Kabango emphasized the importance of soft skills in rebuilding the economy, citing areas such as marketing, financial management, and customer service as crucial components of ESP's program. Workshops focusing on customer service and business best practices are integrated into the curriculum to ensure that participants are well-equipped to deliver an exceptional experience for their customers. When asked about the sustainability of the program, Kabango highlighted the partnership with the MasterCard Foundation, which provides funding for the initiative. Revenue generated from service fees is utilized to deliver the programming, with a portion allocated as grants directly to the entrepreneurs. This sustainable model ensures that ESP can continue to support young businesses in the long run. The focus on tourism and hospitality sectors in ESP's initiatives is strategic, given their importance as key revenue generators for Rwanda. By unleashing the potential of young entrepreneurs in these sectors, the program aims to have a ripple effect on the economy, driving growth and innovation in a critical industry. ESP's impact goes beyond financial support, as they also provide mentorship, training, and networking opportunities to help entrepreneurs succeed. Access to finance remains a significant challenge for many entrepreneurs, and ESP addresses this issue by not only providing capital investments but also by assisting participants in becoming investor-ready. Through comprehensive training and support, entrepreneurs are equipped with the skills and knowledge needed to secure financing and expand their businesses successfully. As ESP continues to expand its reach and impact, Kabango shared an update on the Commesa program, which is set to support 60 SMEs in the coming months. The selected entrepreneurs will undergo a comprehensive training program, including workshops, clinics, and mentoring sessions, to help them navigate the challenges posed by the pandemic. In conclusion, ESP's focus on providing intelligent capital to young entrepreneurs in the tourism and hospitality sector is a testament to the importance of supporting SMEs in their recovery efforts. By empowering these aspiring business owners with the tools and resources they need to succeed, ESP is not only fostering economic growth but also driving innovation and resilience in a crucial sector.