Slow growth of the Small and Medium Scale Enterprises (SMEs) sector in Malawi has been largely attributed to lack of financial management knowledge and continued diversion of capital loans to other activities by business owners.<\/p>\n
FDH Bank\u2019s Account Relationship Manager for Personal and Business Banking Danda Maluwa raised the alarm during a presentation to some SME operators in Blantyre.<\/p>\n
\u201cThe challenge that most SMEs face is that whenever they access bank loans, there is always a risk to divert the funds,\u201d said Maluwa.<\/p>\n
\u201cThere are a number of SMEs that would come to the bank today and we review their business plans and there is always potential for growth. When the bank takes the risk to partner with that business with funds, they divert the funds for personal use,\u201d said Maluwa.<\/p>\n
He said this is affecting the SMEs capacity for growth and limits the sector\u2019s overall contribution to the economy.<\/p>\n
Maluwa also cited lack of strategic focus among most players as a contributing factor for slow growth of small scale businesses.<\/p>\n
Small and Medium Enterprise Association (SMEA) president, James Chiutsi, said the challenge facing SMEs emanate from lack of capacity among players in the industry.<\/p>\n
\u201cMost of the SME owners are not taught prudence in financial management. As a result, they fail to use the finances effectively,\u201d said Chiutsi.<\/p>\n
He said there is a need for special training for the players to fully understand their role to the economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
Slow growth of the Small and Medium Scale Enterprises (SMEs) sector in Malawi has been largely attributed to lack of financial management knowledge and continued diversion of capital loans to other activities by business owners. FDH Bank\u2019s Account Relationship Manager for Personal and Business Banking Danda Maluwa raised the alarm during a presentation to some […]<\/p>\n","protected":false},"author":3,"featured_media":8516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/8514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/comments?post=8514"}],"version-history":[{"count":1,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/8514\/revisions"}],"predecessor-version":[{"id":8517,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/8514\/revisions\/8517"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media\/8516"}],"wp:attachment":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media?parent=8514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/categories?post=8514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/tags?post=8514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}