Taking the Power of Entrepreneurship to the World Babson-Rwanda Entrepreneurship Center 2011 Annual Report
Letter from the Executive Director December 2011 In May 2010, Babson College made the commitment to develop a new model of promoting entrepreneurial thought and action around the globe. The BabsonRwanda Entrepreneurship Center was formed with the goal of helping to create a stronger entrepreneurial environment in Rwanda, a developing country in East Africa that would otherwise have little opportunity to connect with Babson. Inspired by entrepreneurs in Rwanda, developed by students at Babson and made possible with the support and involvement of many friends, the creation of the Center itself is a testament to the power of the entrepreneurial spirit at Babson. In 2011, the Center’s first full year of operation, there has been much visible progress in driving entrepreneurial activity and creating a more entrepreneurial culture in Rwanda. Country Directors Ben Cox and Chris Smith have inserted themselves in the center of “all things entrepreneurial” in the country. This report provides an overview of the Center’s major activities and accomplishments. The impact of the Center has been felt around Rwanda through creating nationwide events such as Global Entrepreneurship Week and through highimpact on the ground events such as the Babson Entrepreneurial Leadership Academy. There have been many people who have played key roles in helping the Center achieve unprecedented success in such a short period of time, some of whom are specifically acknowledged on the following page. These and many other people share in the credit for the Center’s success. More importantly, the continued support of the individuals acknowledged, the support of new partners in this effort and the momentum of the Center’s activities create the promise for an even greater impact on Rwanda. What has already been achieved has proven that Babson can use entrepreneurship to build stronger communities and even stronger nations. Thank you for your interest in learning more about the Babson-Rwanda Entrepreneurship Center. I hope you will support the efforts of the Center in any way you can. Together, we can take the power of entrepreneurship to the world.
Dennis M. Hanno Executive Director, Babson-Rwanda Entrepreneurship Center Dean, Undergraduate School Babson College Babson Park, MA USA
Acknowledgement of Key Supporters While many people have contributed to the early success of the Babson-Rwanda Entrepreneurship Center, the following deserve special recognition:
The Babson student team that developed the plan for the Center: Benjamin Cox, Lindsey Ford, Lauren Kritzer, Tiffany Lien and Luis Soto, with financial support from Professor Len Green. The leaders at the Rwanda Private Sector Federation and other key advisors in Rwanda and the United States, especially Robert Bayigamba, Faustin Mbundu, Eugene Nyagahene, Alphonse Byusa, Brother Straton Malisaba, Sister Ann Fox and Mike Herlihy. And those who have led the way with financial support for the Center: Dan Nova, Len Schlesinger, David Fialkow and Joseph O’Donnell.
On the Ground in Kigali It has been an incredible first year for the Babson-Rwanda Entrepreneurship Center (BREC). Here in Kigali, it is clear that our impact is growing with each month that passes, with each new program that we begin, and with each entrepreneur who gains the skills and resources needed to start and grow their business. When we first arrived in Rwanda in October 2010, we came with a broad mandate to advance entrepreneurship in the country. With generous support from the Babson community and the Rwanda Private Sector Federation, we knew we had an unprecedented opportunity to link the spirit and expertise of Babson with the grand aspirations of a small, but powerful, developing country. Rwanda is offering a new model to African development, one focused on entrepreneurship that aligns perfectly with our own ambitions, abilities and resources – and those of Babson. In one short year, we have been able to develop and implement many programs that are helping Rwanda to realize its social and economic development goals. We are training students with the skills they need to turn their ideas into action. We are providing government agencies with an objective overview of the entrepreneurship development landscape. We are introducing the general public to the benefits of an entrepreneurial society. In short, we are helping to build Rwanda into one of the most entrepreneurial nations in the world. As our first year on the ground comes to a close, we are confident that bigger things are in store for the Center. What we have already achieved has earned us our reputation as the “go-to” entrepreneurship experts in the country. We are increasingly viewed as a valuable resource to local government, international NGOs, and world-class universities. We are increasingly sharing Babson’s unique entrepreneurial spirit with people across Rwanda and connecting them to the Babson community. Most importantly, we are grateful to serve Rwanda and Babson in this unique capacity. We look forward to building upon the momentum we have created in order to have an even greater impact in the months and years to come. In Service,
Benjamin D. Cox BREC - Country Director
Christopher D. Smith BREC - Country Director
About Rwanda Rwanda, known as the land of a thousand hills, is a small landlocked nation located in eastcentral Africa. At about the size of the State of Maryland, Rwanda has a population of nearly 11 million people, making it one of the most densely populated countries in the world. The history of Rwanda is a complex story, both tragic and inspiring. In 1994, Rwanda experienced one of the most horrific events of modern times. Genocide ravaged the country, claiming nearly one million lives, destroying most of the country’s infrastructure and leaving the economy in tatters. Since that time, Rwanda has become a modern model of national development, focused on recovering from the tragedy of the genocide and healing the old wounds of ethnic violence. Today’s Rwanda is one of the cleanest, safest, least corrupt and fastest growing nations, not only in Africa, but across the world. Its economy has shown amazing growth, averaging 7.8% GDP growth between 2005 and 2010. The World Bank has consistently ranked Rwanda as one of the world’s leading pro-business reformers in recent years. However, Rwanda is still among the world’s most impoverished nations, with per capita GDP (PPP) standing at about $1,155. The
largely subsistence-based economy is driven by the agricultural sector, which accounts for roughly 41% of GDP and employs 90% of the population, with coffee and tea as the country’s primary exports. The government and private sector have built a strong partnership to develop the nation and transform Rwanda into a middle-income servicebased economy by 2020. At the core of this ambition is Vision 2020, Rwanda’s private sector led development strategy. A pillar of Vision 2020 that links directly with the goals of the BabsonRwanda Entrepreneurship Center is the goal of developing a strong entrepreneurial middle class focused on launching innovative businesses and expanding employment. To meet its goals, the Rwandan government has made huge investments in infrastructure, worked tirelessly to develop the skills of its citizens and made countless reforms to support business creation and attract FDI. The impact of these efforts can be readily seen: there has been a jump in the number of registered SME’s from 72,000 in 2008 to 119,158 in 2011 and, bolstered by a strong tourism industry, the services sector has experienced rapid growth and now accounts for 38% of GDP.
Partnering to Build Capacity To create high impact, the original plan for the Babson-Rwanda Entrepreneurship Center called for a partnership with a high-profile and established organization in Rwanda. Identifying a strong partner was the Center’s first priority and the Rwanda Private Sector Federation (PSF) has turned out to be exactly that. The PSF provides an extensive and established network, high brand recognition, and an unparalleled understanding of the local business culture. The Center’s office is housed within the PSF headquarters in Kigali, and the resulting day-today interaction has created many opportunities to connect with the entrepreneurs who are leading Rwanda’s private sector development. One of the top priorities for the Center has been to work with the PSF to evaluate the nationwide MiniRIG (Rwandan Investment Groups) program, something that could not have been done without the capacity and expertise provided by the Center’s staff and other Babson support. Another priority that was identified is the need to provide leadership development opportunities
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for the country’s business executives and top managers. The Center responded by organizing a workshop for fifty of PSF’s top members. In March 2011, the Center organized its first seminar on Entrepreneurial Leadership and Venture Growth. BREC Executive Director Dennis Hanno challenged the participants to think differently about their roles as leaders of the country’s top enterprises. The seminar provided a new approach to navigate both the day-today and strategic challenges in entrepreneurial organizations, providing participants with a stronger sense of the need for entrepreneurial thought and action at all levels of their organization. The partnership with the PSF has provided the Center with instant access to entrepreneurial organizations and activities around the country. It has created instant credibility that has led to opportunities for other partnerships with high profile organizations such as the Rwanda Development Board, the U.S. Embassy and other NGOs such as Bridge2Rwanda.
Creating a National Network There are many organizations within Rwanda focused on various aspects of business development, including government agencies, international development and aid groups and independent entrepreneurship trainers and coaches. During the first months of the Center, a goal was to connect with as many of the leaders of these organizations as possible. In doing so, much was learned about their activities, successes, failures and challenges. Most importantly, it became quite obvious that bringing all of these groups together would actually result in more progress and greater impact. At a meeting it organized in March 2011, the Center proposed to create a coalition of entrepreneurship service providers and other interested parties. The goal of this Entrepreneurship Alliance is to increase communication and collaboration across a broad array of organizations. The Center has served as the primary organizer for the Alliance, leading the way in creating for the first time a broadbased group in Rwanda focused exclusively on entrepreneurial development.
The Alliance has hosted a series of activities designed to stimulate conversations, catalyze connections, and lead to a more informed and integrated entrepreneurship ecosystem. On multiple occasions, the Center has brought together representatives from government, academia, and NGOs to discuss – formally and informally – ways to improve the effectiveness of the group’s collective efforts. The level of collaboration has been unprecedented. There have been two workshops for service providers, multiple social events, various working group meetings, shared contact lists, and even discussions about setting up a shared office. The highlight of the activities was a working reception on entrepreneurship organized in May by the Center and hosted by U.S. Ambassador W. Stuart Symington at his home. With more than fifty people in attendance, it provided visible evidence that the Center had already established itself as the leading organization in Rwanda focused on creating a stronger national entrepreneurial environment.
Introducing New Institutions to Rwanda As Rwanda’s reputation for safety, orderliness, and anti-corruption spreads throughout the world, many higher education institutions are looking to the country to expand their academic offerings, to increase research and volunteer opportunities, and even to set up satellite offices. The Center is uniquely positioned to advise these faculty, administrators, and students on the trends and opportunities within Rwanda’s entrepreneurial environment. As the only American business school with full-time staff members in the country, Babson and the Center are increasingly seen as a resource for some of the world’s best universities interested in Rwanda. During 2011, the Center provided varying levels of support to the following academic institutions: • University of Cambridge • Massachusetts Institute of Technology • Carnegie Mellon University • Wake Forest University • Rice University • Baylor University • University of Scranton
Babson’s global leadership position in business education and BREC Executive Director Dennis Hanno’s extensive experience in developing entrepreneurship-related activities in Africa provides a rich resource for the guidance sought by university deans, presidents, and overseers in creating new programs. The Center’s in-country experience and strong network of relationships similarly provides an excellent resource to visiting faculty and students as they try to make best use of their time in Rwanda and ensure a long-lasting impact after they leave.
Developing High-Impact Entrepreneurs Working with high-potential individual entrepreneurs is an important goal for the Center and has been an area of focus since the day the Center was established. Through various channels, the Center has been able to connect directly with many entrepreneurs who have come to rely on it for direction and guidance as they develop their business ideas. There is no better example of this kind of activity than the Center’s work with the Benebikira Sisters. The Benebikiras have been working in Rwanda since 1919 to develop education and health care programs throughout the country. Their history is one of perseverance and innovation, having survived the Genocide while always being creative in meeting the needs of the many people who rely upon them for spiritual and material support. In recent years, they have turned to income-generating activities to help fund their important work. The Benebikiras heard about the Center in early 2011 and sought its assistance with a number of business challenges. When Sister Augusta, the order’s Chief Financial Officer, first walked into the Center office, she had two clear needs: help in launching a bakery to supply the cafeterias at their schools and guest houses, and a financial plan to help refinance the loan for their student dormitory in the university town of Butare. It was clear that Sister Augusta had the entrepreneurial
spirit to create change in her community but that she lacked the knowledge and skills to address these problems on her own. Working through the Center, a team of Babson students was assembled to work alongside Sister Augusta in addressing the issues she faced. Babson students traveled to Rwanda to visit the Benebikira operations. In addition, Sister Augusta spent the summer in Boston studying marketing and organizational behavior at Babson. She has since taken the skills she gained back to her order of 350 nuns and the 5,000 students who study in their schools, but not before continuing to deepen the ties between Babson and this impressive group of women. The relationship continues to flourish and grow. In early 2012, owners of a major bakery in the US (who are members of the Babson community) will visit Rwanda to help build and start the bakery. In the summer of 2012, a team of ten young women from Babson will spend four weeks operating a summer school for Sister Augusta’s students in Save. The work with Sister Augusta and the Benebikiras provides a vivid example of how the Center can impact communities by providing the resources and connections to those entrepreneurs with the greatest potential for impact.
Building a Culture of Innovation One of the most visible activities of 2012 for the Center was the first Babson Entrepreneurial Leadership Academy, conducted in August. The Academy brought together more than eighty of Rwanda’s top secondary school students for an intensive residential experience designed to help them become more entrepreneurial in their thinking and to develop their leadership skills. Eleven volunteers from Babson joined the Center’s staff in Rwanda to conduct the week’s trainings and activities, bringing together students, alumni, faculty, and staff to help create a stronger culture of innovation among Rwanda’s youth. Students in the Academy were challenged to generate feasible business ideas that they could start and run in their own communities. Using a workbook and materials specifically developed for the Academy, the students were introduced to new ways of thinking and taking action. The week culminated in an exciting Rocket Pitch Competition with twelve students presenting their ideas to a large group of important guests and the entire Academy. One participant perhaps best
captured the sentiment of the entire group – both students and staff – when he commented in his written evaluation that, “Wow! This week was a life changing experience for me.” The work of the Academy extends beyond what occurred during the week in August. Many of the attending students have since applied what they learned to start small businesses and entrepreneurship clubs at their schools. The Center continues to work with twelve star graduates to help them complete their business plans and apply for a microloan. The first loan was dispersed by the Center in December 2012 to fund the creation of a computer tutoring center. The Academy will be an annual event, and its impact and instant reputation have already prompted many more inquiries from individual students, teachers and schools across Rwanda. In 2012, more schools and more students will be invited to participate and a special workshop will be held for teachers of entrepreneurship to further help in building a culture of innovation across the country.
Leading the Way with Research In order to better understand the entrepreneurial landscape and culture in Rwanda, the Center has focused on conducting various forms of research. This research serves the dual purpose of guiding the Center’s activities while informing others about the unique environment within the country. The Center’s first official report, Rwanda’s Entrepreneurship Development Landscape, is the most comprehensive source of information on this subject. The report was stimulated by the realization that the many different organizations working on entrepreneurial development in Rwanda were largely unfamiliar with one another. The Landscape Report profiles more than twenty organizations focused on developing entrepreneurs in Rwanda. It maps the organizations and their activities, informing stakeholders of the trends, opportunities, and key players within this space. It also includes an objective overview of the trends and opportunities within the sector. The final report was distributed in September 2011, providing government agencies, international donors, service providers, and entrepreneurs with a level of information previously unseen.
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The Center also developed an online directory of the organizations and support services available to entrepreneurs in Rwanda: www.Hanga.biz. The site makes readily available up-to-date research and information for entrepreneurs and also contains a calendar of entrepreneurship-related events, relevant news articles, and other valuable resources for all types of aspiring and active business owners. With almost unlimited access to aspiring and practicing entrepreneurs, the Center has also focused on learning more about the motivating forces and perceived challenges for entrepreneurs in Rwanda. For example, a survey of participants in the Babson Entrepreneurial Leadership Academy has yielded a wealth of information about youth entrepreneurs. In addition to guiding the activities of the Center with this population, the data will be shared with policy makers to help guide national education and training initiatives.
Celebrating Entrepreneurial Success As the national host of Global Entrepreneurship Week (GEW) Rwanda, the Center mobilized 22 local partners to organize over 25 different events during this one week in November. The events ranged from workshops that inspired youth to start new businesses to networking receptions that connected entrepreneurs to potential collaborators. Prominent partners such as the Rwanda Private Sector Federation, the Rwanda Development Board, and the United States Embassy also participated, engaging policymakers and thought leaders in discussions around improving Rwanda’s entrepreneurial ecosystem. In total, these events involved over 5,000 participants across the country. GEW is the world’s largest celebration of the innovators and job creators that launch new businesses, develop solutions to challenging
problems, and expand human welfare. The Center brought this global initiative to Rwanda for the first time, creating more focus on entrepreneurship across the country and raising the visibility of the Center to new heights. Numerous press articles both inside and outside of Rwanda featured the Center and Country Directors Ben Cox and Chris Smith. The week provided an opportunity to create widespread awareness of the transformative ability of entrepreneurship and a chance to build upon the enthusiasm around entrepreneurship that already exists in Rwanda. Country Director Ben Cox has been invited to share the Rwanda GEW story at a global meeting of GEW organizers in London during early 2012. Plans are already underway for an even larger and more impactful celebration in November 2012.
Engaging a Global Community Since its inception, the Center has provided numerous opportunities for members of the Babson community to work in, and learn from, Rwanda’s dynamic environment. Similarly, Babson has been able to host many prominent visitors from Rwanda as a direct result of the Center’s activities. These interactions have helped to foster a global perspective and a sense of social responsibility among the entire Babson community.
profile speakers such as entrepreneur Eugene Nyagahene, PSF Chairman Robert Bayigamba and noted consultant and author Eric Kacou have made Babson more connected with Rwanda than perhaps any other college in the United States. Professor Norm Govoni commented on the impact of having Sister Augusta here from Rwanda during the summer, noting that, “She has earned the respect and admiration of all the students for her demeanor and humanitarian efforts.”
Several Babson students have worked with the Center as interns, providing crucial support for a wide array of activities while also experiencing unparalleled learning and personal development opportunities. These same kinds of opportunities have been extended to Babson staff and alumni through their participation in the Babson Entrepreneurial Leadership Academy.
The connections have created new possibilities, both for Rwanda and Babson. For example, a Babson family has committed to helping the Benebikiras build a new bakery in Save. Also, ten women from Babson’s Women’s Leadership program will spend four weeks in Rwanda next summer teaching secondary school students the principles of entrepreneurship, English, and computer science. The Center has clearly created a connected global community that is using entrepreneurship to shape the future of Rwanda.
Visitors from Rwanda have also had a significant impact on the Babson community and have helped to create deep connections. Visits by high
Contact Information: Dennis Hanno Executive Director, Babson-Rwanda Entrepreneurship Center Dean, Undergraduate School Babson College Babson Park, MA USA 02457 Phone: 781-239-5660 Email: dhanno@babson.edu Benjamin Cox Country Director, Babson-Rwanda Entrepreneurship Center Private Sector Federation P.O. Box 319 Kigali, Rwanda Phone: +250 782 835 596 Email: bcox1@babson.edu Christopher Smith Country Director, Babson-Rwanda Entrepreneurship Center Private Sector Federation P.O. Box 319 Kigali, Rwanda Phone: +250 782 835 578 Email: csmith9@babson.edu Babson-Rwanda Entrepreneurship Center website: www.hanga.biz