Networking, Collaboration, and the Somali
Entrepreneurial Context
Name: Amina/Jama
Course: Entrepreneurship and Networking
Assignment: Networking, Collaboration, and the Somali Entrepreneurial Context
Scenario
As a new entrepreneur based in Afgooye, my business focuses on selling locally sourced bananas
and oranges to international markets. Although my products are of high quality, I face a major
challenge: limited starting capital to purchase a commercial fruit cleaning and packaging machine,
as well as reliable shipping logistics to meet my first international order. To overcome these
challenges, I will rely on Somali traditional financing and strong business networking strategies.
1. The Ayuuto/Hagbad Strategy
Using Hagbad to Solve Capital Challenges
To address my limited capital problem, I will join or form a Hagbad (Ayuuto) group with other small
business owners in my community. Each member contributes a fixed amount weekly or monthly,
and one member receives the total contribution in rotation. When it is my turn to receive the pooled
funds, I will use the money to:
- Purchase a commercial fruit cleaning and packaging machine.
- Cover part of the shipping and export costs for my first order.
This approach allows me to access capital without formal bank loans or interest, which is ideal for a
small startup.
How Hagbad Demonstrates Networking and Collaboration
1. Networking:
Through the Hagbad, I build strong business and social connections with other entrepreneurs and
traders. These relationships can later help me find new buyers, suppliers, and partners, even
beyond the group.
2. Collaboration:
The Hagbad scheme depends on trust, cooperation, and shared goals. Each member supports the
other’s business success. This collective support demonstrates the Somali spirit of working together
for mutual growth.
2. Operational Networking
To ensure smooth shipping and supply chain management, I must immediately establish
connections with two key operational network contacts:
(a) Logistics and Shipping Agent
Role:
A logistics agent will help me arrange reliable transportation from Afgooye to the port (likely in
Mogadishu), and handle international export procedures.
Reciprocal Value (Give and Take):
- What I get: Access to international shipping routes, documentation, and customs clearance
services.
- What they get: Regular business from my company and referrals to other fruit exporters in
Afgooye.
This partnership is mutually beneficial—my success brings them repeat contracts, and their
efficiency ensures my exports reach customers on time.
(b) Local Farmers’ Cooperative or Suppliers
Role:
I need a consistent supply of fresh, high-quality bananas and oranges from local farmers in
Afgooye.
Reciprocal Value (Give and Take):
- What I get: Reliable, fresh produce that meets export standards.
- What they get: Stable income, fair pricing, and the opportunity to access international markets
through my business.
By maintaining trust and fair communication, we build a long-term relationship based on shared
benefit and community development.
Conclusion
Using the Hagbad system and building operational networks are essential strategies for a Somali
entrepreneur with limited resources. The Hagbad demonstrates community-based collaboration,
while professional networking ensures efficient supply chains and long-term business sustainability.
Together, these approaches represent the power of Somali entrepreneurship—resilient,
community-oriented, and globally ambitious.