ACCESS FINANCE FOR YOUR SMALL BUSINESS IN ZAMBIA

In my work of motivating and coaching SMEs in Zambia, I am always saddened as I reflect on the challenges that we face in the marketplace. Three main challenges dog SMEs:
1. The lack of business management and entrepreneurship skills
2. The high cost of doing business
3. The lack of access to affordable finance

To start with management skills among the SMEs is generally poor especially in terms of human resource management, financial and accounts management, and sale and marketing management. Most SMEs lack quality skills to ensure that they put up, manage, and maximise the potential of a great team. They are also unable to professionally keep financial records, let alone manage their money effectively. Most disheartening most SMEs have not harnessed technology and globalisation to take advantage and market themselves and their products.

The cost of doing business in Zambia is ridiculously heinous. Our tax regime hurts the small businesses who enjoy no tax relief particularly in imports as most of them are in trade and manufacturing. The cost of real estate, transportation, and other primary business necessities continue to render many small business morbid before they even have the chance to bud.

But worse of all is the cost of finance. Not only is financing extremely expensive, but even access to financing is practically untenable for small businesses. Most banks are not SME friendly and this is a serious challenge for most entrepreneurs. This provides a lot of business for Shylocks who exploit people by charging an exorbitant 50% interest in a maximum period of 30 days, strategically designed for the debtor to default so that the collateral is seized and sold for a higher price.

Such are the challenges that SMEs face on the marketplace particularly here in Zambia. But with the backdrop of the economic and social role that entrepreneurs play in society it important that we ourselves become smart enough to develop solutions for this problem.

That is why we have come up with a financial management system that will enable SMEs to access funds to help them grow their business without the need for collateral. The system will be trust based and will ensure that SMEs develop financial systems in their businesses that will be sustainable in the long term.

For more information contact Brian Matambo on 0979360027 or email me on brianmatambo@gmail.com and I will invite you to attend a 2 hour workshop in Lusaka, on how you can access financing for your small business without collateral and in turn build a sustainable financial system for your business and grow your enterprise.