Maravi

‘SMEs don’t know requirements for accessing finance’

‘SMEs don’t know requirements for accessing finance’
Written by Mwila Chansa in Ndola
Thursday, August 27, 2009 3:52:52 AM

THE inability by most micro, small and medium enterprises to prepare business plans is a hindrance for them to access finances from lending institutions, Zambia Development Agency (ZDA) Copperbelt provincial officer Innocent Melu has observed.
And Ndola district commissioner Moses Mumba said the survival of any business largely depends on the availability of markets.

In an interview during a workshop on facilitating access to markets and finance training for micro, small and medium entrepreneurs in Ndola on Monday, Melu said finance was critical to the survival of any business.

“Most SMEs don’t know the requirements for accessing finance from banks or from the Citizens Economic Empowerment Commission and this is why we have invited institutions to explain various financial products or requirements,” Melu said.

“And the other thing is that these SMEs lack knowledge on preparation of business plans. Quite alright they have the concepts but they can't put them on paper to suit the requirements of financial institutions.”

He advised entrepreneurs to be vigilant and have their ears to the ground for them to remain updated on various issues related to business.

Melu said small enterprises were supposed to complement the government's efforts in creating employment, strengthening domestic markets and contributing to the growth of the Gross Domestic Product but that this could not happen if they failed to access markets for their products or finances to grow their businesses.

And Mumba said the only sure way of survival for any enterprise was the availability of guaranteed markets.

The objective of the workshop was to help entrepreneurs understand various practical business processes, procedures and requirements when dealing with financial institutions and when sourcing business from corporate companies and large organisations.

Labels: CAMPAIGN FINANCE, CEEC, MOSES MUMBA, SMEs, WORKSHOPS, ZDA

posted by MrK @ 2:55 AM