Nico Holdings plc managing director Vizenge Kumwenda has advised accountants to team up and form a critical mass of credible entrepreneurs to boost the economy, create jobs and reduce poverty.
He said on Friday in Blantyre during Institute of Chartered Accountants in Malawi (Icam) dinner and dance that accountants can make entrepreneurs that can be in the category of small and medium enterprises (SMEs).
“In developed countries, most of the employment creation happens in that space. For SMEs to have a similar effect, we need to have enough credible investors operating in that space.
“The emphasis has to be credible because there are many investors out there, if you look at them, they are not able to give us what is expected of investors,” said Kumwenda.
Kumwenda, who heads a Malawi Stock Exchange (MSE)-listed financial services firm that has interests in insurance, banking and property management, said these investors need to have proper skills in financial management and exercise financial discipline.
He told more than 500 accountants who gathered at the event themed Challenges and Solutions to Investment in Malawi: A Practical Insight that these are investors that should separate “entrepreneurship own life from businesses’ own life”.
“When you put capital in a business, make sure that it is for business. When you borrow money for business, do not borrow for consumption or for holiday,” said Kumwenda
He observed that many “unsuccessful” entrepreneurs cite a myriad of challenges such as banks being hard on them, cost of capital being too high and transportation cost when in actual fact, the problems are of their own making.
Kumwenda, therefore, advised accountants to migrate and become entrepreneurs instead of just providing financial advice to businesses.
On his part, Icam president Bwighane Joel Mwenelupembe agreed with Kumwenda, saying it is high time accountants became entrepreneurs.
“We, as accountants, play a role in financial management and we possess intellectual know-how in business management and the economy. We advise businesses on how to make profit. We should also be able to embark on businesses ourselves,” he said.