ACCESS TO FINANCE VITAL FOR GROWTH OF SMALL AND MEDIUM ENTERPRISES

Entrepreneurs have called for assistance in accessing loans from financial institutions. This comes after a report on the current situation of Small and Medium Enterprises (SMEs) indicated that 88 per cent of SMEs remain in the informal sector. The nature of the informal sector makes it difficult, for business people involved, to access capital in form of loans. This is because requirements and procedures for accessing loans are mostly structured for the formal sector. Consequently, the majority of the SMEs are unable to sustainably grow as a result of insufficient capital. Continued support from government to SMEs is important for the realisation of a self sustaining private sector led economy. SMEs are central in the development agenda of the country, since the majority of the business sector falls in this category. It is important that all stakeholders assist the many SMEs, especially those that remain in the informal sector, to have access to financing. Forming and joining associations, would help those in the informal sector to get loans from financial institutions. It is also important to promote capacity building for those in the informal sector through their associations or cooperatives. This would be in form of training in record keeping and other technical assistance to help them to efficiently run their businesses. Ends