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ILO boosts financial skills for young entrepreneurs

The International Labour Organisation (ILO) in Zimbabwe has launched a critical initiative to address the financial management challenges faced by young entrepreneurs.

The organisation held a trainig session in Bulawayo on Monday to equip young business owners with essential financial skills.

This comes at a time when many are grappling with limited access to financial literacy, poor budgeting practices, and inadequate market linkages, barriers that hinder the growth of their businesses.

The training, which aims to benefit 1 000 young entrepreneurs across Zimbabwe, focuses on providing practical tools to overcome these challenges.

Fortune Sithole, ILO Project Coordinator for Business Growth among Young Entrepreneurs, said that many young business owners lack the foundational skills needed to sustain and scale their ventures.

โ€œWe are targeting entrepreneurs who are on a growth path but face significant hurdles, such as poor money management and low financial literacy,โ€ Sithole said. โ€œThese challenges often prevent them from achieving their full potential.โ€

The initiative, implemented in partnership with the Ministry of Womenโ€™s Affairs, the Ministry of Youth, and supported by the African Development Bank, builds on previous training sessions conducted in regions like Mutare, Honde Valley, Mutoko, Karoi, Umguza, and Masvingo. These sessions targeted young entrepreneurs in diverse sectors, including banana farming, tomato value chains, artisanal mining, and dairy farming.

Sithole explained that a needs assessment revealed widespread gaps in financial knowledge among young entrepreneurs.

โ€œDespite prior training in business management, many still struggle with basic financial skills like budgeting, saving, and accessing appropriate loans. This program addresses these gaps by teaching goal settingโ€”short-term, medium-term, and long-termโ€”and how to align these goals with business growth strategies.โ€

One of the key challenges highlighted during the training is the lack of access to suitable financial products.

Many young entrepreneurs take loans that are ill-suited to their businesses, often due to a lack of understanding of financial terms and conditions.

โ€œWeโ€™ve seen cases where young people select financial products that end up harming their businesses,โ€ Sithole noted. โ€œThis training equips them with the knowledge to make informed decisions and avoid such pitfalls.โ€

Shadreck Zhou from Dial-Honour Consultancy, a partner in the initiative, said entrepreneurs struggle to access the financial services they need to grow their businesses.

โ€œThrough this program, we not only educate them about the services offered by banks and microfinance institutions but also facilitate direct interactions with these institutions to bridge the gap.โ€

Zhou added that many young entrepreneurs face challenges in income generation, budgeting, and financial planning.

โ€œA significant number of participants in our previous programs indicated they were struggling to raise enough income, save effectively, or plan for the future. These are critical skills that we are addressing in this training.โ€

Participants shared their personal struggles, underscoring the importance of the program. Dedication Marasha, a young entrepreneur, admitted to poor financial discipline before attending the training.

โ€œI had no structure in managing my finances, and it was holding me back from achieving my goals. This training has shown me the importance of banking and saving, and Iโ€™m now motivated to take my business to the next level,โ€ he said.

Nomagugu Ndlovu, another participant, highlighted the challenge of mixing personal and business finances. โ€œI used to dip into my business funds for personal expenses, which affected my growth. Now, I understand the importance of separating the two and managing them properly,โ€ she said.

Senzeni Ncube

Senzeni Ncube is an accomplished journalist based in Bulawayo, Zimbabwe, with seven years of experience in hard news, investigative writing, fact-checking, and a keen focus on social development, mining, elections, and climate change. She has extensive expertise in reporting community service delivery issues, demonstrating a deep understanding of politics, human rights, gender equality, corruption, and healthcare. Additionally, she possesses proficiency in video production and editing and is dedicated to providing high-quality journalism that highlights crucial social matters and amplifies the voices of the community. Senzeni is known for her thought-provoking interviewing skills.

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