Devaluation affects Entrepreneurship Revolution

Devaluation of the kwacha and its subsequent floatation has negatively affected the rollout of the Entrepreneurship Revolution Programme.

Business consultant Henry Kachanje, who came up with the initiative in an e-mail response, said the devaluation of the kwacha has dealt a blow to the programme.

“The devaluation of the kwacha and its subsequent floatation has indirectly affected the rollout of the programme as most small-scale enterprises [SMEs] are going through tough times. We are, however, optimistic that things will soon change as the economy picks up in the course of the year.

“So far, we have about one thousand small-scale businesses. This is a good start considering that such programmes usually take time to pick up,” he said.

Last October, Kachaje launched the programme which seeks to impart business skills to 200 000 entrepreneurs so that they should create one million jobs by 2017.

The business consultant also cited lack of financial and human resources as other factors that have affected the programme.

“It is expensive to run continuous adverts in the print and electronic media, informing SMEs about the programme.  As such, we are failing to reach out to as many SMEs as we would have loved,” he said.

Kachaje thanked NBS and FDH banks for supporting the programme, adding that it is his belief that the initiative will make a difference to the growth and development of SMEs in the country.

He said a lot of SMEs graced launches of the programme in Blantyre, Lilongwe and Mzuzu.

Kachaje said the programme is being implemented in phases and the first three to six months is for sensitisation and registration of SMEs.

During the launch of the programme in Blantyre, FDH Financial Holdings Limited group chief executive officer Thomson Mpinganjira called on local entrepreneurs to embrace the concept if they wanted to grow.

Mpinganjira noted that most Malawians have served as successful engineers, consultants and accountants but they fail to make it big as entrepreneurs.

He cited lack of capital and discipline as some of the reasons for this and advised local entrepreneurs to consume little but invest more.