Stanbic incubator offers free business training to boost SMEs

KAMPALA, Uganda— Stanbic Business Incubator Limited (SBIL), a subsidiary of Stanbic Uganda Holdings Limited, is providing free empowerment support to small and medium-sized enterprises (SMEs) in an effort to combat the high failure rate often experienced by these businesses.

Established in 2018, SBIL offers workshops, mentorship, and hands-on training designed to equip SMEs with crucial competencies in areas such as governance, strategic planning, financial literacy, and risk management. Catherine Poran, the chief executive of SBIL, told New Vision in a recent interview that this comprehensive approach aims to ensure businesses not only survive but thrive in competitive markets, fostering growth, resilience, and strategic collaboration for sustainable economic development.

A core focus of SBIL’s work is capacity building, empowering entrepreneurs with the necessary skills and knowledge to lead sustainable enterprises. Poran emphasized that facilitating access to affordable financing is another cornerstone of their strategy, recognizing financial constraints as a major impediment to SME growth. Through calls for proposals, SMEs can compete for grant funding to support their expansion without the burden of repayment.

Strategic partnerships have played a vital role in extending SBIL’s support. Notably, a collaboration with the United States African Development Foundation (USADF) has enabled medium-sized enterprises to secure crucial financial backing. A significant achievement of this partnership was the recent awarding of $40,000 to the first group of agro-processing businesses, highlighting SBIL’s commitment to empowering sectors critical to Uganda’s economy.

Formalization is another key area of focus for SBIL. Recognizing that many local businesses operate informally, limiting their growth potential and access to formal markets, SBIL actively assists SMEs in registering with the Uganda Registration Services Bureau (URSB) and meeting compliance obligations set by the Uganda Revenue Authority (URA). Poran proudly noted that SBIL’s work contributed to URSB registering 28,000 new businesses in 2023. Formalizing operations allows SMEs to attract investment and build the credibility needed for partnerships with larger corporations and access to international markets.

In response to the economic challenges posed by the COVID-19 pandemic, Stanbic Bank launched the Economic Enterprise Restart Fund (EERF), offering affordable blended financing to distressed SMEs. According to Nelson Kasada, a leader at SBIL, the impact has been significant, with SMEs in the oil and gas sector accessing the EERF reporting average revenue increases of around 150 million Ugandan shillings.

Kasada also advocates for collaboration among SMEs, urging them to pursue joint ventures, join Savings and Credit Cooperative Organisations (SACCOS), and pool resources to enhance their competitiveness.

Since its inception, SBIL has significantly impacted Uganda’s business landscape. More than 7,800 individuals and 8,000 SMEs have directly benefited from its programs, with many reporting notable revenue growth, job creation, and a shift towards formalized operations and collaborative partnerships.

In 2024 alone, SBIL supported over 3,000 enterprises, enabling them to access 76 billion Ugandan shillings in credit, a sharp increase from the 51 billion shillings accessed in 2023. On average, each business supported in 2024 created seven new jobs, significantly boosting employment and improving livelihoods across Ugandan communities.