Diversify source of income, SMEs urged


THERE is need for small-scale and medium entrepreneurs (SMEs) to come up with other sources of income rather than depending on one source to assist them grow their business, a local entrepreneur Felix Banda has said.
Mr Banda said dependence on one source has the potential to cause their business to collapse because there is no other way in which they can find funds to restate it.
He said on the Zambia National Broadcasting Corporation morning live show on Saturday that if they have multiple sources of income, entrepreneurs will be able to resuscitate their businesses without borrowing.
“I think dependence on one source of income is one of the mistakes that the entrepreneurs made in 2014 because when the business is affected, it means you lose track,” he said.
Mr Banda also said lack of information among SMEs has affected the development of the sector.
He said some people are basing their challenges on what they have heard from friends rather than going on the ground to find out what is happening for themselves.
“One of the challenges entrepreneurs are faced with is lack of information, which is a powerful tool for business. A good number of people just go with the masses. When they hear people complaining about not being able to get loans they base their decision on that without investigating.
“Banks every day are issuing loans but every day people are complaining, so who is getting the loans? This thing of having to hear what people have said and then run with that analysis  is wrong,” he said.
On the performance of SMEs, Mr Banda said they performed well despite the various challenges faced.
“The year ended on a very high note for a number of people, and just by the observation on what is happening in the economy, despite the challenges, but Government was very responsive to address the issues. We are hitting 2015 running because there are sufficient resources for us to share in the country,” he said.

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