A World Bank report points out that small and medium-sized enterprises (SMEs) in Africa make up about 90% of all businesses and 80% of employment, but they still face a massive $331 billion financing gap every year. So, how do we close that gap for entrepreneurs? One way is by understanding the real barriers they face—from a lack of financial literacy to poor infrastructure—and tackling them head-on. Organizations like Inkomoko are already doing this, providing the right training, affordable financing, and practical tools to help entrepreneurs overcome these challenges and reach their full potential.

Take Muktar Mohamed, 47, for example: A father of six from Jigjiga, Ethiopia, he left his long-standing government job because his modest salary wasn’t enough to cover the basic needs of his growing family. 

His thoughts often turned to his late father, a successful grocer, who used to tell him, “When you solve a problem for others, you create a business for yourself.” With that wisdom in mind, Muktar decided to open a café, hoping it could provide for his family, but things didn’t exactly go as planned. “I didn’t have any business experience,” he admits, remembering the early struggles with managing operations. “My staff wasn’t trained, and I couldn’t keep track of my finances.” The frequent power outages in Jigjiga only made things worse—without a backup generator, he couldn’t serve customers during blackouts, and his debts kept mounting.

And what do you know? These struggles are common occurrence in Ethiopia: Around 50% of small businesses in the country close within five years, mostly because they can’t get the financing they need. One study showed that 79% of Micro, Small, and Medium Enterprises (MSMEs) in Ethiopia see getting credit from formal financial institutions as a major hurdle. It’s simple: where access to financial services is limited, so is the success of entrepreneurs.

In Muktar’s case, everything changed one Friday afternoon while waiting in a long line at the market. He overheard a conversation about Inkomoko, and that’s when things started to shift. “The training really opened my eyes,” he says, explaining how he learned practical skills like proper bookkeeping, customer care, and pricing. With the support of one of Africa’s largest lenders to entrepreneurs on the continent, he even secured an affordable loan of 200,000 ETB, which helped him buy a generator to keep his business running smoothly. 

Today, Aways cafeteria is thriving, and Muktar has expanded to two other ventures.

“From just this small business, I now employ 21 people, and my monthly revenue has more than doubled (monthly sales revenue has grown to USD 15,818, reflecting an 81% increase from the baseline),” he says. 

But the real impact of Muktar’s work is in the community he’s built. One customer put it best: “You’ve brought the whole community together.” His café has become where people gather, connect, and feel at home. That sense of belonging is what sets his business apart.

Now, he’s thinking even bigger, with dreams of expanding into the Somali region. And it’s not hard to see why investing in small business owners like Muktar feels like a breakthrough. In places where opportunities are limited but ambition is everywhere, the right support—access to finance, mentorship, better business tools—can make all the difference. When an entrepreneur can finally afford that generator or separate personal and business finances, the ripple effect is powerful.

This isn’t just about one business making it. It’s about what happens when success spills over; when a café becomes a community hub, when a single opportunity sparks something bigger. Sometimes, change starts with something as simple as a shared cup of tea.