Constraints analysis of start-up business in Burundi

Small and Medium Enterprises (SMEs) are engine of economy both for developed and developing countries. They play a significant role in income generation, job creation, poverty reduction and reducing income inequality. In Burundi, key stakeholders such as policy-makers as well as other international and national actors have made more effort to develop the segment of SMEs. Indeed, many start-ups have been created but are however, exposed to several challenges in their business operations. This paper aimed at investigating main critical barriers to SMEs growth and development in Burundi. The research was based upon a sample survey of small firms in Burundi and 314 small enterprises were surveyed. Rural start-ups’ critical barriers identified are mainly poor management, lack of access to market flow, lack of working capital, inadequate qualified workforce and low selling prices. On the other hand, five severe obstacles for urban SMEs identified are insecurity, access to financing, macroeconomic situation, lack of customers and unfair competition. A better understanding of all these barriers that SMEs are facing is useful to set up best strategies susceptible to increase their growth.