‘Finance, management skills shortage hampering business’

MASERU – A senior consultant at Reids Consulting, Teboho Molope, said the majority of businessmen in Lesotho lack cutting edge business management skills to grow their businesses.
Molope spoke on Monday in the wake of plans to hold a business training workshop to train local businessmen in Leribe, about 100km north of Maseru.
At least 20 local entrepreneurs will receive training on developing business plans and growing their businesses.
“A significant number of entrepreneurs do not have business management and financial skills. Banks are (therefore) reluctant to offer loans to starting entrepreneurs,” Molope said.
He said lack of market research impeded their access to finance they need to start their businesses.
“Participants will receive training on how to formulate business plans and how to generally improve their businesses,” Molope said.
He said lack of access to finance was a serious problem for emerging businesses as banks were reluctant to lend money to newly established businesses.
“The other challenge is that some business people do not have passion for their enterprises so they do not give enough attention to their businesses. In the majority of cases such businesses collapse,” Molope said. “The environment is not very conducive for starting up businesses for most entrepreneurs.”
“The Lesotho Enterprise Assistance Programme which is a project organised by the Ministry of Trade provides 60 percent of consultancy fees and other services that will help enterprises to diversify and expand their product lines,” he said.
He said many entrepreneurs found it difficult to pay for the remaining 40 percent of the cost for consultancy services.