By BUUMBA CHIMBULU
THE decision to create different tax brackets for small and big businesses as announced by President-elect Hakainde Hichilema will promote growth and create a level playing field.
This is important because it will promote growth and not choke the little life of Small and Medium Enterprises (SMEs).
This is according to Forum for Small and Medium Enterprises and Manufactures (SMEM) Principal Consultant, Godfrey Chingala.
“Once we understand that enterprises need grooming and support, we will also understand that smaller business owners need mentoring and training apart from exposure,” Mr Chingala said in an interview.
He noted that the majority of the Zambians were SMEs and manufactured, hence the need to support its growth.
“Our excitement also comes from the fact that our President-elect comes from the business world and appreciates the uniqueness of the sector.
“As he progresses in his term, we hope that he continues to look into the abilities of our organisation and similar ones to assist provide country wide employment opportunities to youth not only as associations but individually as this approach of groups has its special challenges,” Mr Chingala said.
He said teaming small businesses creates its own ownership challenges, imbalanced responsibility and progression, among others.
“Our proposal was that Government works with organisations that directly promote SMEs skills training, business establishment and operations capital, mentorship and individualised business supervision up to three years.
“This would create seasoned businesses able to stand Zambia’s unique environment,” Mr Chingala said.
He said SMEM had identified other development approaches that groom SMEs such as cottage industry promotion and training.
Mr Chingala said this creates consumption for artisan machinery while making finished goods at household level and increasing incomes that in turn support the economy.