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“Capital is a key ingredient and major handicap to entrepreneurship ventures. Government’s recent downward economic growth revision has also exacerbated the situation as funding constraints continue to prevail,” said Jongwe. “The solution lies in government facilitation of entrepreneurship ventures through Sedco (Small Enterprise Development Corporation), which can underwrite risk associated with entrepreneurship.”

Jongwe said the Small Business Administration (SBA) based in the United States, which is dedicated to providing support to small businesses throughout the nation, could be replicated in Zimbabwe.

Zimbabwe’s economic terrain has not been as friendly to emerging business enterprises and existing manufacturing concerns despite the modicum of stability brought about by dollarisation three years ago.

High interest rates and short tenure of loans, an acute liquidity crunch, massive competition from imports and low disposable incomes have effectively served to deter business growth prospects.

The high unemployment rate estimated to be hovering well above 80% has not helped matters either.

Do you think a program like the SBA would help provide business growth in Zimbabwe?

Photo by Joseph Ferris III

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Originally posted by Angela Shupe on August 19, 2012 in News.


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