One of the key takeaways from the 2020 National Budget was the recognition that young people make an important contribution to economies as productive workers, entrepreneurs, consumers, citizens, members of society and agents of change. In-order to take advantage of this demographic dividend, the Government of Zimbabwe has set up a National Venture Capital Fund.
The purpose of the Fund is to finance start-up projects. National Treasury has already committed $500 million for the Fund. Piggy believes that this is a great initiative that will create job opportunities given that it will provide affordable loans to young entrepreneurs including those engaged in production. It is also worth noting a clear majority of private-sector economic activity throughout the world today is undertaken by small-sized businesses. SMEs generally employ the majority of an economy’s workforce and represent more than 95% of informal enterprises in any given country.
There has been no better time to start a business! In another recent development, the Reserve Bank of Zimbabwe (RBZ) has cut its policy rate from 70% to 35% as part of efforts to provide funding stimulus to the productive sector. The cut is with effect from 20 November 2019 and is in line with the need to increase productivity and create jobs across all sectors.
Piggy is upbeat that if implemented efficiently, such measures will be instrumental in stimulating economic growth as SMEs can also borrow and fund productive activities. Folks should definitely start brainstorming some ideas and putting together business plans. Here are some tips from the Joe Money Podcast that could be useful;
There is also some good news for those who like trading. “You can now set up your own business with just a laptop, smart phone and an internet connection”. Trading has many advantages over other businesses you might contemplate starting because of the following;
- You can trade from anywhere;
- You have no product to make, to advertise or to sell;
- You have nothing to store;
- You choose what you want to trade, when to trade it and in any amount you wish;
- You have no customers to keep happy;
- You have no employees to keep happy;
- You have no invoices to send out, no accounts payable and no accounts receivables;
- You can scale up or scale down the business at your discretion; and
- You alone are responsible for the success of your own business.
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