In Africa's rapidly evolving business landscape, small and medium-sized enterprises are beginning to recognize that data literacy and forecasting are essential tools for growth, stability and long-term success.
Business strategist Catherine Uduba, whose work spans supply chain operations and demand forecasting, has seen how even modest data practices can transform daily operations and sharpen competitive advantage.
A graduate of the Tuck School of Business at Dartmouth, she emphasizes that data is not exclusive to large corporations.
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She noted, "Every business generates information through sales records, customer behavior, inventory turnover and supplier timelines, and the real power lies in understanding how to interpret these signals."
Uduba added that SMEs that take advantage of the data at their disposal are able to make faster and more informed decisions that give them an edge in crowded markets.
She stressed that gathering information is only the first step, noting that the real impact emerges when business owners use those insights to project outcomes and take deliberate action.
"Collecting information is only the starting point. The impact becomes clear when businesses use what they gather to anticipate outcomes and act with intention," she added.
Uduba said a retailer who pays attention to daily sales trends can easily identify fast-selling goods, slow-moving inventory and changing seasonal patterns, enabling them to restock wisely, cut losses and improve cash flow.
She noted that even basic observations about what sells, when it sells and who buys it can create meaningful advantages without sophisticated technology.
Uduba encourages entrepreneurs to begin with practical and affordable habits.
She advised entrepreneurs to start with simple, affordable routines, saying consistent sales records, customer activity notes and basic trend tracking, whether through spreadsheets or mobile apps, often reveal insights that point directly to profit-improving opportunities.
Uduba emphasizes that once SMEs build comfort with these internal practices, the next level of growth comes from looking outward and placing their performance in a broader context.
She further said, "Benchmarking against industry data allows business owners to understand whether their prices, turnover rates or customer retention levels match or lag behind the market."
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She explained that public datasets, trade association reports and research publications offer valuable reference points, while studying how competitors set prices, run promotions or manage demand cycles enables SMEs to spot lapses in their strategies.
According to her, a firm that routinely sells below the market average might realise it can raise prices, while another with slower stock movement could learn from quicker competitors.
She said benchmarking provides context that strengthens decision-making.
As SMEs expand their understanding of both internal and external data, they begin to unlock new possibilities that go beyond operational adjustments.
Uduba said SMEs that deepen their understanding of both internal metrics and external market data begin to unlock broader opportunities such as more accurate demand forecasting, improved supplier negotiations, refined customer segmentation and better product planning.
She explained that in African markets where conditions shift rapidly and resources are stretched, these data-driven capabilities often determine whether a business merely survives or outpaces rivals, adding that data ultimately becomes a pillar for innovation, resilience and long-term planning.
As African economies continue advancing toward digitalization, Uduba believes that SMEs that invest in data literacy, forecasting and competitive insight will be better positioned to scale and compete in both regional and global markets.
For her, the message is straightforward: "The future belongs to businesses that treat data as a foundation for smarter and more intentional growth."
