Even MacDonald’s Was Once an SME.

In the early 1950s, McDonald’s was a modest restaurant in San Bernardino, California. Its owners, Richard and Maurice McDonald, had pioneered a streamlined food preparation process they called the “Speedee Service System.” This system enabled them to produce burgers, fries, and milkshakes at an unprecedented pace and consistency, turning their small restaurant into a local favorite.

The brothers were content with running a single location — until Ray Kroc walked in the door. Kroc was a struggling businessman who stumbled upon the restaurant while selling milkshake machines. Captivated by the efficiency and simplicity of the McDonald’s system, he realized its enormous potential for scalability.

Kroc's key insight was that with a solid system, a small business could scale into a national and then international powerhouse. So, he offered the brothers a deal: to turn McDonald’s into a multinational phenomenon — and that’s when the franchise model came in.

But there was one problem. Even though the brothers had built working systems that produced burgers quickly and predictably, those systems still needed improvement and perfection. So, Kroc spent months polishing every process, harmonizing the systems, and ensuring there was no margin for error.

He relentlessly focused on consistency, quality control, and the training of franchisees — all supported by a robust operational blueprint that became the backbone of McDonald’s explosive growth. But then came the next bottleneck: financing. Kroc was a struggling businessman with no capital and limited credit. Desperate for an answer, he turned to banks. Rejected by most of them, he eventually found support from Bank of America — and the rest was history.

What started as a single SME evolved into one of the most recognized global brands, boasting tens of thousands of locations worldwide. All because of one word: Systems.

Many SMEs possess this potential, but they are often held back by a lack of proper management structures, scalable systems, and visionary strategy. What works at one scale cannot sustain them as they grow. This requires creating replicable processes, cultivating strong leadership, and envisioning a future where the company’s principles can be standardized across locations and cultures. And this is where most African businesses stumble — they get stuck in a small-business mindset.

SME is not an identity; it’s a phase.

The biggest economies in the world — from the US to China and beyond — were built by empowered enterprises equipped with proper management, technology, and capital to scale. Even more, these companies contribute not just economically but also socially: they provide stable employment, invest in skill development, boost innovation ecosystems, and generate tax revenue that supports public services and infrastructure.

Would you believe that there are only about 15 companies in East Africa that make over a billion dollars annually, while the GDP of California or Texas is larger than that of all Africa combined? If Africa is going to have the largest workforce and become one of the biggest consumer markets in the next decade, why can’t we produce?

We cannot afford to ignore these enterprises. Keeping them micro, small, or medium is a disservice to the economy and to ourselves. Beyond mere numbers, scaling businesses also encourage local supply chains, regional integration, and knowledge transfer — all key elements for sustainable growth.

By creating an enabling environment — through better access to finance, capacity building, and supportive policies — African governments and business leaders can help SMEs grow into competitive enterprises. These companies, like McDonald’s once was, can ignite transformative change and help the continent realize its vast potential.