Growing-SME-Innovation-in-Zambia-Trevor-Simumba
Growing-SME-Innovation-in-Zambia-Trevor-Simumba
Growing-SME-Innovation-in-Zambia-Trevor-Simumba
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<strong>Innovation</strong> and F<strong>in</strong>ance is a Challenge<br />
Access to f<strong>in</strong>ance is still a major limit<strong>in</strong>g factor for <strong>SME</strong>s <strong>in</strong> <strong>Zambia</strong>.<br />
A 2007 World Bank survey stated that only 16 per cent of firms surveyed reported hav<strong>in</strong>g<br />
a loan or l<strong>in</strong>e of credit from a f<strong>in</strong>ancial <strong>in</strong>stitution, compared with 23 per cent for the<br />
region and 35 per cent for all countries surveyed.<br />
In general, banks refuse credit to <strong>SME</strong>s because they are perceived as risky and<br />
unprofitable.<br />
Promote <strong>in</strong>novation and entrepreneurship as an <strong>in</strong>tervention to job creation and poverty<br />
alleviation <strong>in</strong> <strong>Zambia</strong>.<br />
We need to showcase exist<strong>in</strong>g tools (bank<strong>in</strong>g, f<strong>in</strong>ance, <strong>Innovation</strong>, creativity, technology<br />
& entrepreneurship) that support bus<strong>in</strong>ess growth.<br />
The consequent “<strong>in</strong>termediation gap” is reflected <strong>in</strong> narrow and shallow f<strong>in</strong>ancial<br />
markets—a phenomenon that restricts broad-based economic growth<br />
In particular, the rural based <strong>SME</strong>s and micro enterprises face serious problems to<br />
access f<strong>in</strong>ancial services.<br />
Page 6<br />
YOUR LOGO<br />
<strong>Trevor</strong> <strong>Simumba</strong>, SSCG <strong>Zambia</strong>
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