Current Affairs

Bid Network boosts SME’s

By Joseph Lubandi

Posted on November 27, 2017

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Kampala, Uganda | ISAAC KHISA | Naate Masangazira is the director of BiD Network in Uganda. He spoke to The Independent’s Isaac Khisa about linking the country’s SME’s to the prospective investors.

What is BiD Network’s assessment of the SMEs growth in Uganda specifically and in East Africa in general?

There is a huge growth potential for SMEs in Uganda and the East African region in general. Uganda is known as a very entrepreneurial country. Therefore, providing technical and financial support to entrepreneurs is conduit to a vibrant economy.

How does BiD Network support emerging market entrepreneurs to gain access to finance in Uganda?

BiD Network helps emerging market entrepreneurs with a turnover of US$100,000 to attract investment by facilitating introductions to investors from its network that consists of over 200 private investors and investment funds. The financing amounts ranges from US$ 10,000 up to over US$ 1million.

Since BiD Network’s establishment in 2007, what impact has been created for the Ugandan SMEs?

Over the last 18months, BiD Network has organized several successful Investment Trips, out of which nine investments have already been made worth more than US$ 1.5million, with others yet to be concluded. Globally, Bid Network has raised nearly US$32 million for investments in more than 200 businesses worldwide since its inception.

Apart from extending financial support to SMEs, what other services does BiD Network offer to these upcoming entrepreneurs?

BiD Network supports SMEs in various ways including; developing an appropriate business model, preparing an investment plan, identifying the best funding structure for the company based on their situation and ambition and preparing an investor package. Other services that were offer are pitch training, investor mapping, facilitating deal making and organizing investor visits.

How does BiD Network benefit from the services extended to SMEs as an entity?

BiD Network charges a small percentage of the investment received by the SME as a means of remuneration for the support offered during the investor readiness process.

What are the criteria for an SME to benefit from BiD Network’s services?

BiD Network believes in the growth potential and positive impact of these SMEs, who often lack financing options as they are either too big for Micro Finance Institutions, do not have the collateral for a bank loan or are too small for most investment funds. The investors are looking for growing SMEs with a strong entrepreneurial team, proof of market, scalable model, social impact and an annual turnover of at least US$100,000.

What are the main challenges facing SMEs in Uganda and the region? What needs to be done to address these challenges?

Some of the challenges faced by SMEs in Uganda include; the limited access to finance, inadequate collateral to secure bank financing, inadequate capacity to afford long term financing, lack of professionalism, low level technical and management skills .

To address these issues, there is need to avail more flexible financing solutions that are tailored to the specific business. Additionally, business development and investor readiness support are key components that once availed to a SMEs will open up a world of opportunities.

Last month, you organized a matchmaking event in Kampala. What exactly transpired in that meeting?

The matchmaking event involved entrepreneurs and international investors coming together to hear the growth potential of the BiD Network entrepreneurs. Eleven entrepreneurs presented themselves in front of the investors, after which both entrepreneurs and investors asked each other their most pressing questions, held one-on-one meetings, formal introductions and scheduled follow up meetings. Most of the SMEs received exposure to several investment funds that were present for the pitching session and some have already begun discussions or processes potentially leading to investment.

Where do you see BID network in the next five years?

BiD Network intends to expand its operations to four other markets within the region, get over 400 SMEs Investor ready and mobilise investment for over 250 SMEs.

The post Bid Network boosts SME’s appeared first on The Independent Uganda:.

via: Independent