Monday, September 21, 2020

Investec attempts to resolve SMMES failure rate

Investec Asset Management has upped the scale by putting up a Business Place which is aimed at addressing high failure rate that has afflicted the Small Micro and Medium Enterprises(SMMEs) within the country.

The trail-blazing move was taken as part of measures aimed at addressing low business management skills and limited availability of information relating to the market while at the same time proving intregrated support for budding entrepreneurs.

The initiative is a franchise of Investec South Africa Business Place and has been put up in Botswana with the collaborative support of other corporate bodies, such as Barloworld Botswana, Motor Centre Group, the University of Botswana, the University of Botswana Foundation, Kgalagadi Beverages Trust, Department of Youth and Culture and CEDA.

“The government of Botswana has entrepreneurship as an integral part of its strategy to diversifying the economy, alleviating poverty, creating jobs and empowering citizens,” Martinus Seboni Managing Director of Investec Botswana.

Seboni said the government has founded and established various agencies such as NDB, CEDA, and LEA, to deliver on this mandate of economic diversification. He said the various agencies have assisted entrepreneurs in getting funding to turn their dreams into reality, but the sad truth is that the majority factors in their demise is a lack of management skills.

“In essence the Business Place has been formed to address this particular problem,” he added.
SMMEs in the country have a high failure rate of 85 percent before they reach five years. Problems faced are, among others, lack of markets, business skills and general management. The centre is headquartered at Mmaraka House at the main station.

Seboni said this Place is going to provide a range of dedicated and integrated support for the establishment and growth of SMME.
He said the impact that Business Place partners hope to make to provide an enabling environment for Batswana businesses.

“Hopefully, this will trigger continuity in Batswana businesses that should result in employment in the community, income distribution and economic growth.” Satara Dada of Motor Centre said that they had begun to create a powerful private and public partnership effort to address issues faced by entrepreneurs in Botswana.

“This approach has proven to be a cost effective yet powerful solution to address the complexities of small business development.”

RELATED STORIES

Read this week's paper

Sunday Standard September 20 – 26

Digital copy of Sunday Standard issue of September 20 - 26, 2020.