MNAKU MBANI
WHEN Bill Gates dropped out from university to start his own software
business, he never thought that he would – one day – become one of the
richest persons in the world.
Business consultants believe that starting a business when one is in 20s,
such business tend to grow bigger and bigger when compared to business that
one starts while in late 40s.
But for most Tanzanians are still in either high schools or universities in
the early 20s of life. But for a few, at the age of 25 they are employed
graduating, probably at the age of 24 or below.
For 20-years-old Jeremy Kimambo a student at a high school in Dar, he has
never thought of running his own business. All what he thinks of is to get
employed by a bank or an insurance company, after he is through with his
studies.
Kimambo was born in a low-income family of a school teacher and housewife.
He says it always hurts to live in poverty.
To him, the best way out of such predicament is to study intensively and
pass all exams with flying colours so as to get a good job.
Kimambo who is specialising in Commerce and Economics studies want to pursue
Bachelors of Commerce at the university level.
“Studying further would enable me to get a good job, a good salary.. Then I
can buy a luxury car and build a luxury house,” he is convinced. That’s
all! He would not forget a little financial support to his extended family
just like what other well to do Africans have to do.
But is employment the best option for life? For Anthony Peter, a student at
Tambaza High School the answer is no, thank you. He has different perception
acres away from Kimambo. Peter wants to start his own business as soon as
he is through with high school education.
Next year, he will be an ‘O’ level candidate, and later on ready to enter
the world of entrepreneurship. He knows, he will have to overcome
insuperable challenges. How can a 21 year old with no experience, no capital
and marketing strategy be able to start a business?
“I hope to raise about Tsh 2.5 million as capital from my family to set up a
small shop.” Peter is optimistic that the capital will double in two years.
What about education? Peter does not have any intention of ditching his
books. He plans to do study and do business at a go.
He hopes by the time he would be finishing his second year at the
university, his capital would have accumulated to over Ths 5m.
While the two students – Kimambo and Anthony are pondering about the future
prospects, there are others hedged in between starting a business or
continuing in paid employment. Lack of courage to venture out or lack of
capital, is what keeps them still employed.
Some have very good business ideas and are sure the best way for them to
succeed in life is to go into business. Their main problem is where to
start.
At the moment to registering a business and to get it up and running – one
has to go through the existing bureaucratic procedures.
SMEs locked out of capital streams
Studies conducted by different organization suggest that lack of capital and
marketing skills for upstart business people are a big menace in Tanzania.
Banks impose stiff collateral requirements that small business are unable to
comply to.
A study by Finscope indicates that banks in Tanzania have the capacities to
help SMEs by opening the capital floodgates for them. They have not done so
and the endless song of lack of capital continues to rock the air.
On the other side, some borrows in the SMEs subsector diverts funds instead
of sticking to the original purpose – expanding their business. Thought the
percentage could be small, it helps to spread the stereotype of the
unbankability of SMEs.
For Tanzania to register greater economic growth, experts have been
suggesting there is need for grooming young entrepreneurs. That is exactly
what Junior Achievement (JA-Tanzania) project is doing.
The project aims at exposing youth in secondary schools into jobs and
entrepreneurship. It is enabling teens to build work capacities and address
business skills and challenges for establishing companies.
JA-Tanzania Executive director, Maria Ngowi, said for a start, a total of
300 students from ten schools in three regions in Tanzania Mainland are
taking part in the project this year.
She said the project also involves teens who are out of school. The
intention is to empower the youth with business skills that would lead them
into self employment.
Under the project, the students are also mentored at Barclays Bank Tanzania.
The Bank has partly sponsored the project.
Ngowi said the beneficiaries are selected on the merit but with an emphasis
on students from middle and low income families.
According to Ngowi, students are mentored to respond to business challenges,
expand an idea into a sound project and have a vision.
Barclays Tanzania has offered Tsh40 million grant to support the project
activities in Dar es Salaam, Mwanza and Arusha regions.