How To Be A Successful Entrepreneur In Zimbabwe
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Just a few days ago we witnessed the removal of President Robert Mugabe, along with many other of his corrupt officials.
In a historic move for Zimbabwe, the current president, Emmerson Mnangagwa was sworn in as the new president of Zimbabwe. Emmerson Mnangagwa was known to be Mugabe’s ally for years.
We can see that Emmerson Mnangagwa has the goal to make Zimbabwe great again.
He has many plans to make Zimbabwe great again, as he stated in his inaugural speech. He also mentioned that his main goal is to “transform Zimbabwe into a middle-income economy by 2030”, and has plans to remove roadblocks in Zimbabwe which has been a major annoyance to the citizens of Zimbabwe, as they have had to pay a bribe to leave the city.
When I heard the news of the ousting of Mugabe, I was happy and wanted to know what was next. We are now seeing the change that is finally happening. As many people have learned the hard way, don’t get too excited when you hear words, there are many questions left for many things that aren’t set in stone.
Here is what I learned about being a successful entrepreneur in Zimbabwe
Are there any restrictions for starting businesses?
Zimbabwe has a different set of laws for companies based on their size, as smaller companies aren’t allowed to own property of any kind. A company of over $500,000, or more, will have to file a year in advance with the department of health.
Also, businesses with more than 10 employees will have to pay a monthly fee.
This doesn’t include things such as the Registration fee, which is about $27 and the Annual renewal fee is about $23. If your business has between one and 10 employees and has less than $5,000 in monthly sales, your business won’t be able to use land for free.
What is the job market like in Zimbabwe right now?
Right now, Zimbabwe is experiencing high unemployment rates. In 2016, the unemployment rate was at 10,3%, while the youth unemployment rate was at 90%.
There are no jobs at all, so if you want to start a business, you have to work for one.
Can you get loans to start a business?
You can get a small business loan, but if you’re going to want a larger business loan, you’ll have to be located in one of the more developed areas of Zimbabwe. The price for a small business loan is $100, and a larger loan will be $10,000.
What about the right to franchise or open a store?
You can choose to open a franchise in Zimbabwe and you have to have a local partner. If you want to open a store, you have to have a local partner, or you won’t be allowed to open the store.
There have also been many allegations that the banks are going to close accounts of people who have a lot of cash. If you have large amounts of cash in your bank account, you will probably not be able to open a business.
What are some places you can open a business in Zimbabwe?
There are numerous locations in Zimbabwe where you can open a business. The best locations for business are in tourist locations, especially on the main roads.
The country is experiencing a surge in startup activity in almost all sectors of the economy. Entrepreneurs are seizing opportunities to build businesses that suit their needs, working with less resources but managing to create opportunities for their employers and themselves.
As the economy recovers, there will be much more for the ambitious entrepreneur. However, in the short term, entrepreneurial-ism can create challenges for the management of your business. More often than not, people who decide to start their own business want the whole "dream and values". Sadly, the realities can often prove challenging to achieve.
Here are some of the problems that can arise for an entrepreneur
The importance of the HR function
It is vital that you, as an entrepreneur, take care of your employees as part of your business. People who take care of their employees feel a sense of ownership and it's good for company morale and retention.
It's easy to get so wrapped up in your vision and in the business that you fail to see that your employees are a significant source of your company's success.
Make it a habit to have regular interactions with your employees to ensure they feel cared for and valued.
Legal and accounting
If you are an entrepreneur, you have probably not had to deal with a lot of formal paperwork. This can be a problem for a lot of entrepreneurs as you may be unaware of the various tax obligations that you must meet.
You may also have no idea about legal, accounting and administrative requirements. It's worth getting advice from a professional who has experience in these fields.
It will ensure you understand what is expected of you in terms of compliance and what legal remedies are available to you should you be found out to be in breach.
Social media can be a useful source of advertising and marketing for your business. There are many free and paid options you can use for advertising on social media.
However, the legal and regulatory environment varies from country to country and these will need to be taken into account when choosing your form of advertising.
You should think carefully about what you are promoting, what information you are sharing and who you are sharing it with.