Small to Medium-sized enterprises (SMEs) comprise over 90% of the businesses in East Africa, as is the case for most economies elsewhere.
As the backbone of the economy SMEs continue to be a source of dynamism, growth and innovation. In spite of the challenging business environment many of these businesses are embarking on ambitious growth plans. The key question for many is from where shall the growth be derived?
From our experience at Captiva Africa, industry perspectives of growth opportunities are influenced by averaging out the growth rates for the various segments and sub-segments in the target sector. Yet such industries as those for consumer goods that are viewed generally as “mature” will have segments that would be growing rapidly whilst others such as ICT that are perceived as “high growth” will have sub-segments that will have plateaued. Naturally this has the effect of distorting or concealing the opportunities for growth in the target sectors.
At Captiva Africa, we have helped clients identify where they should compete and supported them craft and implement strategies to capture those growth opportunities. In analyzing opportunities, our approach has been to help the clients dissect the key market segments and sub-segments instead of applying such broad terms as high “growth sectors” or “mature sectors” which tend to blur the reality and with it the latent opportunities.
We help our clients develop a more detailed understanding of trends, future growth rates, and market structures. We then work with them to craft business plans, define the capabilities that they need to execute the plans, and allocate resources, recruit and retain people and track their achievements.